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HMRC consultation puts supply chain compliance high on the agenda

HMRC consultation puts supply chain compliance high on the agenda

Following on from the Budget commitment HMRC has released the consultation on offshore employment intermediaries. Whilst the document is a consultation for future legislation, with the intention to introduce the new legislation next year, there are clear undertones that indicate a drive to close down these loopholes.

The proposals, as they stand, pull no punches and make it clear that where there is a shortfall in taxes these will fall directly to the intermediary that supplies the worker to the end client or hirer this could be the recruitment company, RPO or MSP.

They also make clear that if the recruitment intermediary is unable to pay these will fall to the end client.

Supply chain compliance has been moving up the agenda for some time now and Professional Passport is already working with a number of large end clients and recruitment companies on processes and procedures to independently verify their supply chain compliance.

Crawford Temple Managing Director of Professional Passport commented "This is an area we have been very active in and the turning point seems to have been the programme we worked on with the BBC."

End clients have become highly sensitive to potential issues that could damage their brands particularly with anything that relates to any form of tax avoidance.

Crawford Temple went on to say"We have seen a massive increase in end client awareness of supply chain compliance that began around the time of The Agency Workers Regulations. This has continued to grow following the negative publicity some companies received on tax avoidance. End clients are aware of the importance of their brands and just how easily these can be damaged."

He continued to say"This is a real opportunity for the professional recruitment company and provides a platform for them to positively differentiate themselves from the rest of the market conversely it will also expose those with weak processes and procedures."

Professional Passport welcomes these proposals as they have been the leading voice in bringing this issue to the top of the agenda. We believe this is an important step in moving to a level playing field for the responsibly and professionally run providers and recruitment companies.

The consultation document can be viewed here:

Feel free to contact Professional Passport to find out about the independent supply chain compliance verification processes for recruitment companies.


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