Supporting Your Contractors When They Need it Most
For our agency partners, we understand that supporting your contractors while you focus on your recruitment activities is paramount.
We know the last thing you need is for your contractors to leave because they’re not getting the required support or service, especially when times are challenging.
At Big Fish, we are committed to providing a support structure founded on quality, compliance, availability, and care. We’re always prepared to go the extra mile to keep your contractors content and loyal to your agency.
By doing so, we can strengthen your relationships with your contractors and improve your chances of retaining them for future assignments
The Cost of Living Crisis Has Challenged Contractors in the UK.
Over the last 18 months, the UK hasn’t been the easiest place to earn a living as a contractor.
Economic crisis, political turmoil, and global conflict have all contributed to a volatile and fragile economy, with UK businesses needing to figure out how, who, and when to recruit. For contractors, it couldn’t have been much worse.
The cost of living crisis in the UK has hit contractors hard and forced many to seriously consider their positions. Inevitably, this has led to many contractors stepping away from contracting altogether or moving on to more lucrative or lengthy contracts.
At Big Fish, we’re always working hard to provide your contractors with the support they need, especially when times are tough.
Big Fish Support Eases Contractors’ Worries.
At Big Fish, we always go above and beyond to support your contractors.
For a start, we’re available 24/7. A friendly voice is always at the end of a Big Fish line when your contractors need us most.
Providing employee rewards that deliver cost savings on everyday purchases gives your contractors some welcome financial relief, especially when times are tough.
Our employee pension scheme allows your contractors to save tax-efficiently for their futures.
Our daily faster payments mean that your contractors get their money paid promptly; and when most needed.
We’re behind your contractors every step of the way to ensure they can focus on delivering for your clients. Happy clients and contractors mean longer-lasting assignments and stronger client relationships for you.
For further information on how Big Fish can help you build better and longer relationships with your clients and contractors, contact the team.
Autumn Statement Offers Contractors Short-Term Gains
The Autumn Statement, presented by Chancellor of the Exchequer Jeremy Hunt on Wednesday, the 22nd of November, was always going to be interesting for contractors.
A sustained spell of rising inflation and a cost of living crisis with interest rates climbing and soaring fuel costs have hit contractors’ pockets hard in the last couple of years. And, as is always the case in challenging economic conditions, businesses tighten the purse strings, and contract assignments become more challenging to find.
So, with the statement promoted as having a strong focus on stimulating economic growth, supporting UK businesses and getting people back into work, what did it all mean for contractors?
NIC Cuts Offer Short-Term Relief for Some Contractors
There was positive news for contractors employed by umbrella companies and those providing their services as self-employed individuals.
The relief came in the form of cuts in national insurance contributions and an increase in the national living wage.
Lower-level earners aged twenty-one or over will benefit from an increase in the national living wage to £11.44 per hour.
And, from the 6th of January 2024, Class 1 employee NIC will be reduced from 12% to 10%. The two per cent reduction was forecasted to save an average worker earning £35,400, approximately £450 in 2024-25.
Both changes will result in workers having more money in their pockets and less pressure from the cost of living challenges.
There were also NIC cuts for the self-employed, with Class 2 NIC being wholly abolished from the 6th of April, 2024, and Class 4 NIC being reduced from 9% to 8% from the same date.
Contractors can look forward with hope following the Autumn Statement
For contractors, the Autumn Statement’s commitment to stimulating growth in UK business looks to bode well for future work opportunities.
Many actions and plans included in the statement were geared toward stimulating investment and creating jobs. If forecasts prove accurate, contractors can hope for choice and longevity when looking for future roles.
One final point of note was the government’s guarantee of tougher measures and consequences for promoters of tax avoidance schemes. Such actions should give contractors and hirers peace of mind at the reduced risk presented by the temporary labour supply chain.
Autumn Statement Dampens Umbrella Sector Expectations
Considering the amount of hype and expectation within the umbrella sector leading up to Wednesday’s Autumn Statement, there was disappointment from many after Chancellor Jeremy Hunt had delivered his plans.
However, that’s not to say that the statement didn’t contain any points of interest for the UK’s temporary labour sector.
With the Chancellor’s statement leaning heavily towards stimulating economic growth, supporting UK businesses and getting people back into work, the longer-term impact of the statement was likely to hold some interest for the employers, employees and the self-employed.
How did the Autumn Statement Impact the Umbrella and Recruitment sectors?
The umbrella sector has been the subject of much conjecture in recent years; however, the statement contained little directly about the sector.
In contrast, the recruitment industry had some interesting elements to consider.
We’ve highlighted some of the major points below;
- From the 6th of January 2024, Class 1 employee NIC will reduce from 12% to 10%.
- Class 2 NIC for the self-employed will be abolished from the 6th of April, 2024.
- Class 4 NIC will reduce from 9% to 8% from the 6th of April, 2024.
- The national living wage is to increase to £11.44 per hour for anyone aged 21 or over.
- Tax relief on plant and machinery expenditure, known as full expensing, is to be made permanent and should stimulate billions more in business investment.
- Further investment in and additional investment zones resulting in an additional 65000 jobs.
- Back to work plan for the sick, disabled and long-term unemployed, expanding candidate pool.
- Stricter measures for those seeking benefits to help encourage people back into work.
Autumn Statement Summary
Umbrella contractors, low-level earners and the self-employed will benefit from cuts in national insurance and an increase to the national living wage in 2024, giving workers some much-needed financial relief from recent rising costs.
Businesses of all sizes will benefit from several tax relief and funding initiatives, which have all been introduced to help stimulate growth and investment.
The benefits may not be immediate for the UK temporary labour sector; however, the long-term prospects due to increased investment, job creation, and a broader candidate pool should all bode well for a buoyant employment market in the coming months and years.
Supporting agencies and their contractors
There aren’t many business relationships with the same level of influence on customers as an agency and an umbrella company.
For agencies, contractors represent an invaluable commodity that represents their business, enhances their reputation and provides a consistent and regular revenue stream.
So, to delegate employment and pay, two of the most sensitive elements of a worker’s welfare, to another business is a decision we never expect you to take lightly.
Agencies need quick, efficient and professional support for their contractors.
Big Fish may only have been around for four years (and a bit), but our team of payroll experts have over thirty years of combined experience. So, if there is one thing we’ve learned over all those years, agencies and their contractors need quick, efficient and professional support.
The fewer the issues and problems, the better.
That’s why Big Fish is committed to providing our agencies and contractors the highest levels of service possible. We are constantly reviewing our processes to ensure that they meet the needs of our customers, and we continually invest to ensure that we exploit the latest technological and software developments.
Big Fish Group provides a service that is second to none.
At Big Fish, we believe we’re better than the rest.
But don’t listen to us. We’d prefer that you hear it from our customers.
“I have worked with Kerry and BigFish for a number of years. Kerry and her team are knowledgeable and supportive and provide a service that is second to none. The most important part of our relationship is that whenever my contractors need support or issues resolved, I know that the team will do so quickly, efficiently and professionally. Our relationship is a cornerstone to the ongoing success of Grassroots Recruitment.”
Steve Byrne | Director
Grassroots Recruitment
Big Fish Group – Supporting you and your contractors.
At Big Fish, we know that your reputation is at stake if we get it wrong with your contractors.
That’s why we are committed to continually reviewing and improving the levels of service we provide. If you’re looking for an umbrella that provides a second-to-none service to your contractors, contact us today.
Agencies. Who’s looking after the KIDs?
It’s been said many times, but KIDs are a huge responsibility.
While they may not be at the top of the to-do list when placing contractors, looking after your KIDs can make your life much easier in the long run.
KIDs, or Key information documents, should be issued to contractors before you place them on assignment, and, as recent case law has demonstrated, not taking responsibility for your KIDs can be a considerable risk.
Why are your KIDs important?
According to the government’s guidance on providing KIDs to agency workers;
“The key information document is intended to improve the transparency of information for agency workers, particularly around pay. It will give agency workers more immediate access to key pay-related information before agreeing terms with an employment business and a clear idea of how any fees and deductions will affect their pay.”
Can KIDs put you at risk?
In short, yes.
Issuing KIDs can make life much easier in the long run as they preempt many of the questions contractors ask when they start a new assignment. KIDS are an excellent upstream process that can negate many issues agencies regularly face during contractor assignments.
However, the most significant risk is in not issuing a KID.
As KIDs are now a legal requirement, failure to issue them is deemed as a breach of the 2003 Agency Conduct Regulations and can result in penalties to the agency.
Big Fish can help to look after your KIDs
At Big Fish, we’re always happy to lend a hand, even when it comes to your KIDs.
We can help to ensure you take responsibility for your KIDs and provide all the information necessary.
If you’re unsure what to do about your Key Information Documents or want to check that what you’re currently doing is correct, call the Big Fish team
Contractors, don’t forget the KIDs
Securing a new contract can be an exciting time, but it can also be a hectic time.
With so much going on, it’s easy to overlook or miss things, and when it comes to rates, terms and conditions, the last thing you want is any mix-ups.
It’s why we at Big Fish always recommend that you get your KID (key information document) before you start your assignment so you clearly understand what is going on when you begin your new assignment.
Why are your KIDs important?
Your agency issues a KID and should provide you with all the essential information you need before starting your assignment.
Your KID will outline your employment status and relationship with your agency and show when you will be paid and who by. It should also give you an example breakdown of your pay and any fees and deductions made when you get paid. These details are essential to help you understand your pay during your assignment.
Other details shown in your KID can include how often and when you’ll be paid, and you can expect to be given a new KID if there are any significant changes to the details or terms of your assignment, such as a change in rate.
Getting to know your KIDs
For more information on KIDs, check out the government’s guidance notes – https://www.gov.uk/guidance/key-information-document-guidance-for-agency-workers-paid-through-umbrella-companies
People matter. It’s what we’re all about.
You won’t be surprised to hear our Big Fish family shouting from the rooftops about how people matter.
Whether it’s our team, our clients or our contractors, providing support, advice and service to our people is what we’re all about. However, we’re all different and want or need different things.
So, how do we ensure we provide the service our people want?
Giving contractors what they need.
Let’s take our contractors as an example.
At Big Fish, contractors are our family, our lifeblood. Without contractors, there’d be no Big Fish. So, when we consider our contractors, we consider what essentials we need to put in place at a minimum. As a family, we’d expect someone you can trust, someone who is reliable, protects you, and makes life a little bit easier.
That’s the way we approach our business and our contractors.
In the words of a Big Fish contractor.
At Big Fish, we’re proud of our business, our people, and what we represent. But don’t take it from us.
Here’s what one of our contractors has to say.
“I have been in Revenues for 20 years plus & used umbrella companies for many of these years. Big Fish are by far the best and easiest to deal with. The customer service is amazing Susan, Donna, Natalie & Clare just to name a few.
It is very easy to get started and in all these years I have never once been paid late or had any issues.
They go above and beyond to make everything quick, easy & simple”.
Michelle
At Big Fish, we work with contractors to give them everything they need to be successful.
If you’re looking for an umbrella that you can trust, that is reliable, that supports and protects you and makes life simple and easy for you, contact us.
You can also follow us on LinkedIn or Instagram.
The government's current umbrella consultation paper bodes well for contractors
At the beginning of June this year, the government opened a consultation on proposals for regulation in the umbrella company market. The consultation, which closes on the 29th of August, follows a call for evidence on the umbrella company market and has three main objectives:
- To deliver improved outcomes for workers (contractors).
- To support a level playing field in the umbrella company market.
- To protect taxpayers from the significant revenue losses that currently arise from non-compliance.
What it all means is that contractors that utilise umbrella companies’ services in the future will likely benefit from better protection and tighter regulation of umbrella company practices.
Umbrella consultation paper prompts guidance updates
Following the closure of the original call for evidence in February 2022, the government has already updated several guidance notes on its Gov.UK website.
Contractors seeking support and information on working through an umbrella company can access guidance notes at https://www.gov.uk/guidance/working-through-an-umbrella-company.
You can also read updated guidance on key information documents (KIDs) at https://www.gov.uk/government/publications/providing-a-key-information-document-for-agency-workers-guidance-for-employment-businesses.
Keep an eye open for our updates on the umbrella consultation paper by following us on LinkedIn or Instagram.
What does the government's current umbrella consultation mean for employment businesses?
Following the call for evidence in late 2021 and early 2022, the government has subsequently opened a consultation paper on proposals for regulation in the umbrella company market. According to the government, the consultation has three main objectives:
- To deliver improved outcomes for workers (contractors).
- To support a level playing field in the umbrella company market.
- To protect taxpayers from the significant revenue losses that currently arise from non-compliance.
While the consultation paper remains open until the 29th of August, the government did include some proposals for consideration, which will interest employment businesses.
Umbrella consultation paper proposals include penalties for employment businesses.
The consultation, titled Tackling non-compliance in the umbrella company market, included two strategic options for preventing tax non-compliance within the umbrella company market that could have significant implications for employment businesses.
One option was to introduce a mandatory due diligence requirement, with penalties for employment businesses or end clients that do not comply.
The other is to legislate to give HMRC the power to collect an umbrella company tax debt from another business in the labour supply chain, in specified circumstances. This would encourage employment businesses and end clients to be more selective in the umbrella companies they contract with by making them potentially liable for unpaid tax debts in the event of non-compliant behaviour by the umbrella company.
Should either of these proposals be introduced, agencies would need to significantly increase due-diligence activities to minimise any risk of working with umbrella suppliers.
Keep an eye open for our updates on the umbrella consultation paper by following us on LinkedIn or Instagram.
Is your Umbrella provider a true business partner?
Most suppliers will tell you they are true business partners. Available when you need them, prepared to go above and beyond, offering impartial advice that benefits you, and not them.
But, when it comes to the crunch, do they walk the walk and talk the talk?
Looking after your contractors and their pay is one of the most important services you will ever outsource, so choosing the right umbrella partner is critical to your success.
Creating umbrella partnerships that add real value.
Partnerships are founded on trust and transparency, and that’s what we’re all about at Big Fish Group.
We make ourselves available, whatever the reason, whatever the time. Our team at Big Fish is accessible and friendly and ensures that you and your contractors trust us to provide the support you need when needed. And when we say our team, we mean the whole team. Our directors, Amy and Kerry, are as likely to pick up the phone as any other team member.
What a true umbrella business partner should be.
At Big Fish, we’re proud of what we do.
However, it’s not about what we say; it’s what our clients think that matters.
“We have worked with Big Fish for a number of years now and couldn’t be happier with the service they provide to both ourselves and to our workers. The staff are extremely helpful, friendly and supportive. Kerry and Amy are both always readily available should we require their help with any questions and are the epitome of what a true business partner should be.”
Joe Goatley
Initial Recruitment
Big Fish Group; a true Umbrella business partner.
At Big Fish, we build partnerships that put our agency’s and contractors’ welfare at the heart of everything we do.
If you’re looking for an umbrella provider that offers real partnership, value, trust, and support, contact us on 01925 989 800.