Concerns on COS recovery of Agency Direct Employment staff models and VAT treatment of supplies by PSC’s have been discussed for some time and draft guidance from HMRC is still pending.
Past assurances have been made that no major changes are envisaged with regards to the recruitment of agency staff.
On a related matter, the Court of Appeal has released its decision in the case of Adecco. In this long-running case, the Court agreed with the decisions of lower courts that Adecco should charge VAT on all the money received for supplying non-employed temporary staff who were on its books, including the amounts relating to the wages and PAYE of the individual. An appeal by Adecco to the Supreme Court cannot be ruled out, so this case continues to be one to watch.
We’ve seen instances of workers being forced to work via an umbrella as opposed to PAYE direct and there is a real resistance to this in the NHS.
For example, the Liaison agency direct employment model for temporary workers means that the NHS trusts continue to source their workers through an agency but they then contract and pay the individual doctor directly for the duration of the booking – in a similar way to how trusts engage bank workers. The agency fee disbursements can also be managed by us. We consistently get high utilisation on agency direct employment because of the simple engagement process and support we offer to workers, agencies and booking teams.
Liaison Workforce’s TempRE service is proven to reduce agency spend by over 60% in 6-12 months – unrivalled results within the NHS.
Liaison Workforce’s TempRE easy to access system already provides locums with a user friendly online system covering all activity and assignments and a centralised record and repository of their contracts, payslips and timesheets. TempRE is a proven delivery model of innovative technology, data warehousing and reporting services, back office solutions plus onsite consultancy and support. Workers can access the service from mobile devices too with our TempRE app.
The android and iOS workforce TempRE app is designed for locums, bank staff and other healthcare professionals employed by NHS trusts and health boards using Liaison Workforce’s TempRE service. Candidates can sign contracts, confirm shifts and submit timesheets in real time. The app also enables bank workers to access live bank vacancies and apply for bank shifts quickly.
Our latest Taking the Temperature report also shows a continued shift towards medical bank staff rather than agency direct employment or standard placement. Hours booked through agencies is declining as bank bookings, at typically lower pay rates, have increased in the year delivering better value for money for the NHS. By growing their medical bank, one client trust in the North West has reduced their dependency on agencies and put them in a better position to negotiate harder on rates, bringing down their medical agency spend by 25%.