Supervision, direction or control

A compliant and common-sense approach to SDC

If you’re a contractor or recruiter, you may be aware that the concept of ‘supervision, direction or control’ (SDC) is becoming increasingly important in our sector.

Our experience in understanding, assessing and managing SDC dates back to 2014, when it became the key test in determining whether a temporary worker can be self-employed.

This experience meant we were uniquely placed to help contractors and recruitment agencies navigate the changes when, in April 2016, the significance of SDC was extended to the world of umbrella companies and the contractors they employ.

‘Supervision, direction or control’ – what changed in April 2016?

Specifically, new rules came into force that mean umbrella company contractors who are judged to be under supervision, direction or control whilst on assignment can no longer be reimbursed for home-to-work travel & subsistence (T&S) expenses.

This restriction extends to instances where someone has the right to supervise, direct or control the umbrella company contractor.

That means contractors who are employed by an umbrella company can only be reimbursed for T&S expenses when they are free from supervision, direction or control on their assignment.

SDC: what’s ADVANCE’s approach?

We take an holistic approach in order to build up a thorough, detailed picture of the nature of the contractor’s work whilst on assignment.

If we are satisfied that an umbrella contractor isn’t supervised, directed or controlled they will be eligible to claim and be reimbursed for T&S expenses through our umbrella with expenses solution.

Our expertise in SDC means we are confident in our ability to apply the rules correctly.

We are happy to absorb the risk and bear liability as dictated by the legislation.

Meanwhile contractors and agencies can relax safe in the knowledge that they are working with experts.

If you’re an agency, your reputation will be safe from the risks associated with choosing unethical, inexperienced or misinformed providers.

SDC: Why ADVANCE?

Our approach to supervision, direction or control is:

HMRC compliant

We follow HMRC rules and guidance to the letter.

Robust and rigorous

We build up a detailed picture of the nature of the contractor’s work whilst on assignment.

FCSA-approved

We’ve had the seal of approval from our industry’s most respected trade body.

Tried and tested

We’ve been doing this since 2014, so we know our stuff.

Constantly evolving

We are permanently reviewing and refining our processes, identifying areas for improvement.

Monitored externally

To help us keep up to date with best practice, we are reviewed twice a year by our tax advisors, EY.

The subject of ongoing staff training

Our team members are highly skilled in the nuances and finer points of SDC.

Simple and contractor-focused

We won’t blind the contractor with jargon or ask questions they don’t understand.

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