Contractors enjoy ongoing benefits from the compliance, consultative and lobbying work completed by the Freelancer and Contractor Services Association , says Chairman Stuart Davis. In this exclusive interview with ContractorCalculator, he reveals that much of it is done behind the scenes, as part of the association’s strategy to “influence the influencers”.
"The objective of the Freelancer and Contractor Services Association and its members is to educate and increase levels of understanding about the contracting sector,” he explains. “We aim to ensure that the wider flexible workforce is recognised for its value and diversity.”
And, despite its relatively low media profile, Davis maintains that the organisation is transparent and wants its message to be heard by contracting’s stakeholders. “The Freelancer and Contractor Services Association is completely open, making its code of conduct and ethics and compliance strategy available online. But we don’t need to be constantly creating ‘noise’ about what we do.”
Extensive stakeholder engagement on behalf of contracting
To fulfil its objectives, the Freelancer and Contractor Services Association engages with contracting stakeholders across government, the broader public sector and with trade and industry membership organisations.
Davis says the list includes the Department for Business Innovation and Skills (BIS), HMRC, the Treasury, the Office of Tax Simplification (OTS) and the IR35 Forum. Trade, industry and membership organisations include the Confederation of British Industry (CBI), the Recruitment and Employment Confederation (REC) and the Association of Professional Staffing Companies (APSCO).
“As Chairman, with my broader understanding of the industry and strategy, I engage with stakeholders at a policy level,” continues Davis. “When technical capability is needed, for example on the IR35 Forum, the Freelancer and Contractor Services Association ensures that the right level of technical expertise is at that table.”
Focus on compliance
To outward appearances, the membership of Freelancer and Contractor Services Association has been static for some time. But external observers should not be deceived by appearances, says Davis. “Membership of is a journey, because, without exception, compliance with the code of practice is a condition of entry.
“However, although some companies wishing to join won’t initially meet all of the requirements, their intention is to get there. We don’t then go to the market and say the applicant has failed. We work with them, privately and confidentially, to help them reach the membership stage of their journey.”
According to Davis, there are several firms currently going through the process, although he would not be drawn on which service providers they might be. “There are two or three candidates making good progress and about to enter the formal audit process,” he conceded.
Ongoing development of code of practice
As well as making its code of practice freely available online to all contracting service providers, not just members, the Freelancer and Contractor Services Association updates the code on an ongoing basis, and works closely with HMRC at every stage.
Davis explains: “It would be wrong of us to claim that the code of practice is ‘approved’ by HMRC, because HMRC does not issue such approvals. But HMRC plays a role in the code’s ongoing development and compliance with the latest tax legislation.”
Freelancer and Contractor Services Association also ensure that levels of compliance under the code are appropriate and acceptable to other organisations. Recruiters find the Freelancer and Contractor Services Association ’s code particularly attractive as it helps ‘de-risk’ the relationship between the contractor and the agency and client. Davis cites an example: “We’re working with APSCo to ensure its members understand the benefits of the code for their business, their clients and their contractors.”
He also confirms that an updated version of the code of practice will be released early in 2012, following meetings with HMRC and other stakeholders.
Cost should not be a barrier to compliance
“Unlike some trade and industry membership organisations, the Freelancer and Contractor Services Association is not a commercial body that relies on an ever-increasing membership to generate revenue,” observes Davis. “We’re not trying to be the loudest voice to get short-term commercial gain. That’s why you don’t see a stream of media grabbing headlines about us!”
Backing up their principles with actions, Freelancer and Contractor Services Association members are so aware that membership costs should not be a barrier to compliance that they have established a fund to subsidise membership for smaller contractor service organisations.
“If an organisation is open for membership by compliant services providers, and your business is compliant, then why wouldn’t you become a member?” says Davis.
What’s happening about the Agency Workers Regulations?
According to Davis, the Agency Workers Regulations’ challenge is that although all the stakeholders seem to have a view, all such views are currently opinion, coupled with a hefty dose of ignorance, until the legislation is tested by the tribunals and courts.
“Lots of organisations, including the Freelancer and Contractor Services Association , are putting a lot of effort into getting AWR right,” he says. “After taking appropriate advice and consideration over the methods of working within AWR, the code of practice will be updated to include reliable guidance.”
So, if all seems quiet on the Freelancer and Contractor Services Association front, contractors can rest assured that plenty is going on under the surface that will be of direct benefit to their contracting livelihoods, says Davis. “We don’t say much, but when we do it is sensible, intelligent comment presented so it makes sense to those listening.”