HM Revenue
& Customs (HMRC) is doubling the number of specialist
officers cracking down on labour providers who fail to pay their
tax. These specialist officers are expected to bring in an
additional half a billion pounds of tax over the next four years.
The extra 100 officers will offer free health checks to
businesses to help them use legitimate labour providers and tackle
fraud within the industry. Those found guilty of tax evasion could
face jail.
David Gauke, Exchequer Secretary to the Treasury, said:
“This government has invested £900m in HMRC to crack down on
people who break the rules. Expanding these teams will help make
sure that we bring in the additional money that the UK needs. They
aim to stop tax losses and increase tax yields by more than half a
billion pounds over the next four years. Gangmasters who think
they can exploit their staff and the tax system need to think again.”
Mike Eland, HMRC Director General of Enforcement and Compliance, said:
“Building on HMRC’s successful approach to tackling fraud in the
labour provider industry, these teams will make it even harder for fraudsters.
“Labour providers are traditionally found in agriculture and
construction, where they supply workers to other businesses. But
HMRC will also continue to focus its efforts on all sectors where
there is a demand for a flexible workforce to meet seasonal and
market demand, such as leisure, food, transport, security and cleaning.
“We will tackle fraud by those employers who don’t play by the
rules and the organised crime gangs who exploit their workers. We
will also work collaboratively with labour users and businesses in
these sectors to help them use legitimate providers. This will
help to create a level playing field for compliant businesses to
compete in the market place.”
Labour providers found guilty of tax evasion face custodial
sentences, confiscation of their assets and further sanctions such
as Financial Reporting Orders and orders banning them from
becoming company directors.
The main compliance problems in the sectors are:
* bogus supply chains;
* repeated liquidations to avoid
paying debts;
* failure to keep business records;
* VAT
registration applications from bogus traders;
* failure to
submit VAT returns;
* failure to make a return of income and
gains; and
* failure to pay National Minimum Wage and operate
Statutory Sick Pay.
Notes to editors
1. HMRC already has over 100 officers tackling non-compliance by
labour providers.
2. More information on the use of labour providers can be found
at www.hmrc.gov.uk/leaflets/labour-providers-due-diligence.pdf.
3. Follow HMRC on Twitter @HMRCgovuk.
NAT 32/11
Issued by HM Revenue & Customs Press Office
Press enquiries only please contact:
Contacts:
HMRC Out of Hours
Phone: 07860 359544
NDS.HMRC@coi.gsi.gov.uk
Jonathan Hall
Phone: 020 7147 0052
jonathan.hall@hmrc.gsi.gov.uk
Sara Pont
Phone: 020 7147 0394
sara.pont@hmrc.gsi.gov.uk