GLA revokes UK Payroll licence over travel and subsistence
6 August 2013
The Gangmasters Licensing Authority (GLA) says it has revoked the licence of payroll firm UK Payroll, which accepted it was operating a payday-by-payday expenses relief scheme, in breach of GLA and HM Revenue & Customs Guidance.
Tue, 6 Aug 2013The Gangmasters Licensing Authority (GLA) says it has revoked the licence of payroll firm UK Payroll, which accepted it was operating a payday-by-payday expenses relief scheme, in breach of GLA and HM Revenue & Customs Guidance.
This took effect on Friday, after the GLA wrote to UK Payroll giving it leave to appeal against the decision.
The GLA say the pay-day scheme constituted “multiple and serious” breaches of its licensing standards, including the withholding of wages. Under such schemes, temporary workers are not fully recompensed for the tax and National Insurance relief they qualify for, with that excess money being retained by the agency and/or the payroll company.
UK Payroll was first contacted by the GLA over the scheme in December 2012.
Paul Broadbent, GLA chief executive officer, says: “This company did not appeal against the GLA’s decision to revoke its licence. I take that as a clear signal that it knew it was unethical to operate the payday-by-payday model.
“The fact that that it only stopped operating the scheme when faced with revocation demonstrates that it was disingenuous in its dealings with the GLA, and out to profit from workers, and to the detriment of the taxpayer.”
The GLA says this is its second "success" in its review of payday scheme operators, following an incident involving FS Commercial last year.
This took effect on Friday, after the GLA wrote to UK Payroll giving it leave to appeal against the decision.
The GLA say the pay-day scheme constituted “multiple and serious” breaches of its licensing standards, including the withholding of wages. Under such schemes, temporary workers are not fully recompensed for the tax and National Insurance relief they qualify for, with that excess money being retained by the agency and/or the payroll company.
UK Payroll was first contacted by the GLA over the scheme in December 2012.
Paul Broadbent, GLA chief executive officer, says: “This company did not appeal against the GLA’s decision to revoke its licence. I take that as a clear signal that it knew it was unethical to operate the payday-by-payday model.
“The fact that that it only stopped operating the scheme when faced with revocation demonstrates that it was disingenuous in its dealings with the GLA, and out to profit from workers, and to the detriment of the taxpayer.”
The GLA says this is its second "success" in its review of payday scheme operators, following an incident involving FS Commercial last year.
