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HMRC Confirms Enforcement To Recover Unpaid Taxes and National Insurance

HMRC Confirms Enforcement To Recover Unpaid Taxes and National Insurance

HMRC confirmed that there are provisions that enable them to hold UK-based end user companies, or UK employment businesses liable for the Income Tax and the employee and employers Class 1 National Insurance where such liabilities have not been paid by a non UK-based "employer".

In a recent letter to Professional Passport following a number of press stories and in response to Professional Passport's letters to ministers they state: "HM Revenue and Customs is aware of the existence of schemes in the temporary labour market which seek to provide a tax and/or National Insurance advantage by purportedly placing the employer outside of the UK and the EEA. .. any business that claims to be offshore but has a presence, residence or place of business in the UK will be liable for any underpayment of National Insurance and income tax even if they claim to be off-shore."

They go on to point out "Some of these companies claim that the UK-based end user bares no risk of HMRC seeking to recover underpaid tax and/or National Insurance from them. This is untrue."

They confirm "HMRC has a programme of investigations aimed at National Insurance avoidance schemes and has been recovering monies from companies in the UK who are the end users of such schemes."

This is one area that HMRC will be discussing with recruiters at the Recruiters Workshop on Wednesday 16th January 2013, an essential event for all recruitment professionals.

Recruiters can find out more and book their tickets online here: www.professionalpassport.com/Agencies/798

There is a separate event for providers with more information and online booking here: www.professionalpassport.com/Providers/793

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