LEONARDO

Leonardo is a global industrial group that builds technological capabilities in Aerospace, Defence & Security. The play a prominent role in major international strategic programmes and are a trusted technological partner of governments, defence agencies, institutions and enterprises.

Leonardo were facing challenges in managing temporary and contract workers directly. These included dealing with varied contract terms and payments, administering multiple purchase orders, navigating different engagement methods (sole trader, PSC, umbrella), and handling a complex IR35 assessment process. Inconsistencies in pay rates and multiple timesheet authorization processes further added to their operational complexity. Leonardo required a partner who could streamline these aspects  for smoother operations and compliance.

To streamline operations and tackle Leonardo's challenges, we consolidated their engagement methods into three simplified structures. First, we established PAYE Conditions for Service, ensuring standardization and compliance. Second, we introduced Ltd Co (PSC) Master Purchase Agreements and Service Contracts, clarifying roles and responsibilities while aligning with IR35 regulations. Third, we integrated PAYE Umbrella from Kelly Umbrella PSL, providing a straightforward approach for contractor engagement.

This streamlined statutory costs, aligned holiday pay, and standardized pension contributions. Weekly payments against timesheets within a 7-day period improved efficiency, and weekly client invoicing against authorized online timesheets ensured clarity and prompt transactions.

SOLUTION

• Centralised control with single point of contact
• Standardised T&C's
• Industry & HMRC Compliant
• 7 day payment terms to workers
• Compliant Engagement Terms for PAYE, PSC & Vetted Umbrella PSL
• End to end IR35 assessment process

Moving to weekly pay against weekly timesheets and a prompt payment cycle within 7 days enhanced efficiency. Invoicing the client on a weekly basis against authorized online timesheets ensured transparent and smooth financial transactions. This consolidation of engagement types brought clarity, efficiency, and compliance to Leonardo's operational landscape.

THE TEAM

32

PAYE CONTRACTORS TRANSITIONED

37

TRANSITIONED TO LTD