On 21st July, HMRC launched a new call for evidence on tackling disguised remuneration tax avoidance. They are seeking input specifically from those involved in recruitment supply chains, including hirers, agencies and umbrella providers.
The stated purpose is to explore what drives, and therefore what can be done to prevent, disguised remuneration. By this HMRC mean where payments are made to individuals in such a manner or arrangement which avoids payment of full tax and national insurance. In regard to supply chains, HMRC does recognise that many providers are compliant, but also highlights those who enter into these arrangements to undercut competitors, a common complaint from compliant agencies.
HMRC is looking at whether it needs to take action to build on existing employment agency responsibilities for ensuring tax compliance in labour supply chains, HMRC’s powers in this area and/or better communicate HMRCs existing powers. ARC’s view is that agencies have enough on their plate, but your views are sought.
A copy of the call for evidence is available in the members area at www.arc-org.net with responses to be submitted by 30th September 2020. Please let us know your thoughts. By referring issues to us we are able to address the points to BEIS on your behalf, this can be done anonymously if required.