With off-payroll reform dominating the headlines, you may
not be aware of the new Key Information Document (KID) regulations that are
also coming into effect on 6 April 2020. All recruitment businesses must
provide temporary workers a KID before agreeing terms. This regulation does not
apply to temporary workers with existing terms with your recruitment business,
only new temporary workers that join after 6 April 2020.
The KID is intended to improve transparency of information
for the worker, particularly around pay. Below is a brief bullet point guidance
on the format, timing and content of a KID:
- Document is clearly labelled.
- Includes a brief explanation about its purpose
at the top of the document.
- Includes contact details of the Employment
Agency Standards (EAS) at the top of the document.
- Straight forward to understand and does not
exceed two pages of A4 in length.
- Provided before agreeing contractual terms.
- Where there is an intermediary or umbrella
company involved the KID must be provided to these organisations as well as the
- A revised KID is not necessary every time a
worker begins a new assignment providing there are no changes.
- Name of worker
- Contract type
- Identity of the recruitment business
- Who will pay the worker
- Rate of pay
- Pay intervals
- Statutory deductions
- Any fees for goods or services
- Any other benefits
- Leave entitlement
Where recruitment businesses have multiple ways of paying
agency workers (e.g. PAYE or through an umbrella company) it is expected that
the business will have the standard key facts page corresponding to each
payment method. Therefore you will be required to obtain the relevant
information form the umbrella companies you contract with.
This process is another admin burden for your recruitment
business and you will need to review your current processes to ensure you are
There is a Key Information Document KID template available here on the Gov.uk site, and further guidance on KID can be found here on the same site.
Making the most of the resources available to you will be key in executing the upcoming changes for 6 April 2020. We’ve put together the following IR35 off-payroll reform guide and have run a series of IR35 blogs to provide additional information and guidance.
If you’d like to discuss any of the upcoming changes please do contact Marie Pegram on
01462 687333 or by email email@example.com.
UHY Hacker Young are recruitment sector specialists and
provide expert advice on accounting, finance, taxation and business growth. We
understand recruitment and can support you through the ever-changing landscape
of this fast-paced industry. With IR35 changes around the corner we can help
you build a robust system to tackle this challenge, provide payroll support and
review your existing contracts with assistance from our network of other