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: