Acumenica has seen an email which has been issued by one of RBS’s Staffing Solutions providers and it doesn’t look good.
The bank has stated that after 6 April 2020, most contractors won’t be able to work for RBS via their own limited company. They will therefore be subject to PAYE deductions for income tax and National Insurance Contributions.
Therefore RBS will not engage with most limited company contractors after 29th February 2020 and they will either be expected to engage through an umbrella or use the staffing solutions firm’s PAYE solution. Presumably NatWest and Ulster Bank will also take the same position.
Whilst this is obviously not great news, there is a chink of light in that they have stated they will “most contractors will not be able to work for RBS” which suggests that some will. We expect when the details comes down, it may well be that this is similar in approach to Tescobank in that contractors need to start working on a more business-like footing to be considered appropriate for contracting positions.
It’s also telling that RBS’s default will be Umbrella or agency payroll which may well leave the door open for a reversal should things change.
All Acumenica clients who are affected by the news can be assured that we are working hard on a solution. We’ve a ways to go but we’re confident we can continue to support you beyond April 2020.