Following on from recent tax scandals, including the Panama Papers and various loan write-off schemes, a new corporate “failure to prevent” offence is being introduced from 30th September with a severe penalty regime that should make all agencies sit up and take note.

 

With unlimited fines and the possibility of a criminal record a clear target is being painted on the backs of any part of the staffing supply chain that isn’t compliant. Of vital importance is the fact that an agency can be convicted even if no intent is established and the agency has not benefited financially from the arrangement.

 

With similarities to the Bribery Act the burden of proof falls onto the agency to demonstrate that they have taken reasonable steps to prevent any tax loss to HMRC, so being compliant and being able to fully demonstrate your compliance is paramount.

 

It is, therefore, vital to ensure that any contractors engaged through your agency are being paid through a compliant provider such as a reputable Umbrella Company or into their Personal Service Company with accounts prepared by compliant accountants.

 

If you are concerned about any of your contractors currently being paid outside of an agreed PSL or through questionable schemes offering “90% Take Home Pay” figures call us now. We can contact them and arrange a compliant solution before the 30th September deadline puts your agency at risk. 

 

 

 

Read more about the new Tax Evasion legislation at http://www.osborneclarke.com/insights/failure-to-prevent-tax-evasion-how-will-the-new-law-affect-recruitment-businesses/