That’s the view from recruitment software specialist Mercury xRM, which polled a select number of recruitment agencies to determine how well compliance issues are understood by both permanent and temporary recruitment agencies. The empirical research found that while 67% of agencies are having to adapt their processes to cater for legislative changes from HMRC, eight per cent do not expect to be affected and 25% have no idea whether or not the changes will affect their existing recruitment processes.
The survey also found that while agencies questioned find it easy to report basic details of candidates such as their name, address, and identification details, 40% do not know how to report unique taxpayer details, and do not currently record documentation for health and safety acceptance or DBS checks. A further 30% do not record documentation for anti-bribery and Professional Indemnity insurance certificates.
Employment intermediaries (including temporary recruiters) are now legally required to record and submit information regarding their contractors on a quarterly basis to HM Revenue & Customs as of 6th April 2015. Information required includes details of the worker including address, postcode and national insurance number, assignment start and end dates, amount paid and contact details of the intermediary themselves. Agencies that do not comply face heavy fines.
While the survey found that recruiters are experiencing difficulties understanding all the compliance procedures they must adhere to, the role of recruitment software is playing an important role in helping to ensure compliance. Sixty-four per cent of people questioned said that their recruitment software can handle changes in compliance and legislation, compared with 36% who said it doesn’t, or they are unsure. The same number of agencies said that their existing software also supports non-standard client commercial requirements, and 100% have processes in place to at least ensure contractors are compliant at the start of an engagement.