Supply chain due diligence to assure labour supply chains

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HMRC have issued guidance (13th May 2021) to both and help warn business to be aware of risks within Labour supply chains.

Why assure the labour supply chain

Failing to take reasonable action to make sure that the supply of labour is legitimate can lead to significant legal, financial and reputational risks, liability for unpaid taxes and National Insurance contributions, unable to recover VAT payments and criminal prosecution

Proper checks are also important for protecting workers and preventing modern slavery.

Assure the labour supply chain

Businesses must perform due diligence to make a judgement on transactions and the integrity of the supply chain. To protect the business by testing the credibility, legitimacy, legal and tax compliance of suppliers, employees and labour supply.

Check – Act – Review

If HMRC finds non-compliance or fraud in the supply chain it is likely to be costly.They may be liable for unpaid taxes and National Insurance contributions

For more details:

Guidance: Advive
on applying supply chain due diligence principles
to assure your labour supply chains

PAYadvice.UK 19/5/2021

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