Use of labour providers: advice on due diligence
09 November 2016
If you use labour supplied by a third party then this information will help you understand how to safeguard your business from financial and reputational risk whilst maintaining the flexible workforce you need.
HMRC continues to find non-compliance, illegal working practices and fraud, in labour supply chains across business sectors.
HMRC is urging employers to protect their business by undertaking checks to understand:
- where workers are coming from;
- how they are being paid; and
- the legitimacy of those arrangements.
The advice from HMRC includes the following content:
- Undertake checks on your labour supply chain
- What to check
- If you don’t undertake checks
- Guidelines to help you undertake the checks
- Tell HMRC about your payroll outsourcing
- Verifying VAT registration details
- Reporting concerns about potential compliance issues
- Reporting concerns about exploitation