HMRC Guidance: Labour supply chain due diligence

Published: 16 October 2020

On 8 October 2020, HMRC updated their guidance on:

Advice on applying supply chain due diligence principles to assure your labour supply chains

Failing to take reasonable action to make sure that your supply of labour is legitimate can lead to significant legal, financial and reputational risks to your business. It could even stop your business from operating entirely.

You may be liable for unpaid taxes and National Insurance contributions. You may be unable to recover VAT payments and you could be criminally prosecuted with an unlimited fine if someone acting on your behalf facilitates tax evasion.

Proper checks are also important for protecting workers and preventing modern slavery.