May 05, 2011
In a warning to all employers not upholding UK labour laws, HM Revenue amp; Customs (HMRC) has revealed that it is doubling the number of specialist officers cracking down on those who fail to comply with government regulations.
So called ‘gang masters’ are flouting labour laws across the UK, and the HMRC has promised to come down hard on those demonstrate common compliance problems, including:
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.
The HMRC has warned that labour providers found guilty face custodial sentences, confiscation of their assets and further sanctions such as Financial Reporting Orders and orders banning them from becoming company directors.
“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,” said David Gauke, Exchequer Secretary to the Treasury.
“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.”
The extra 100 officers will also offer free ‘health checks’ to businesses to help them use legitimate labour providers and tackle fraud within the industry, revealed the organisation.
“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,” added Mike Eland, HMRC Director General of Enforcement and Compliance.
“This will help to create a level playing field for compliant businesses to compete in the market place.”
To make sure you’re fully compliant with UK labour laws, approach our employment experts today and we’ll do all we can to make you HMRC compliant.
