We have been discussing a lot lately about how the recruitment industry is a booming sector. But we haven’t discussed how technological advancements have made it easier for fraudsters to build a fake online reputation for themselves as recruitment agencies and scam both the job job seekers as well as job providers. This is a serious issue and has already put many careers and businesses at risk.
Thankfully, the Criminal Finance Act which was announced back in April 2017 and came into effect from 30th September 2017 has addressed this issue. The new Act prioritises the compliance duties and tax evasion issues and sees to it that partnerships and limited companies abide by them. According to the Criminal Finance Act 2017, companies will be deemed as ‘criminally liable’ if they fail to prevent (or are involved directly) their Staff members, suppliers and clients – or any other ‘external agent from carrying out tax evasion.
Here are the key takeaways from the Criminal Finance Act 2017:
Criminal Finance Act 2017 Keynotes:
Through the Criminal Finance Act 2017, HMRC aims to make sure that in no way companies can avoid taxes. The company will be held liable in case they or the people they work with fail are found as offenders for tax evasion. The criminal liability is now assigned in a way that an ‘associated business’ will be held responsible for a tax evasion since they are considered to be aware of the offence and did nothing to avoid it. HMRC’s aim is to see to it that companies are working with entities that are tax compliant.
What does it mean for recruitment agencies?
Recruiters and recruitment agencies have been directly affected by the new act and they now need to make sure that they are working with organisations that are fully compliant be it Limited Company owners, Umbrella companies, accountancy firms or individual contractors. The tax evasion laws covered include personal income tax, corporation tax, VAT and National Insurance contributions.
Follow the below steps to make sure you are working with fully compliant entities:
- Conduct proper research and document a full Risk Assessment
- Ensure that senior members of your team are committed to preventing the facilitation of tax evasion
- Build, and operate through, a tightly controlled Preferred Supplier list
- Retain hard evidence that appropriate training has been conducted for all staff
Who are we?
Specialised, compliant and experienced – all words are identical with Reliasys Umbrella. Our service is different from the others for the simple reason “We CARE” for our employee contractors and focus on providing outstanding customer service. Further being a Professional Passport member we have 100% focus on compliance keeping our contractors and agencies safe.
Feel free to get in touch with us at:
Phone: 020 3500 2615