Supply Chain Transparency
In this industry we are used to working within complex and ever-changing supply chains, making it difficult for us to have full transparency of compliance throughout. Whilst we may know that we ourselves are not operating modern slavery, committing VAT fraud or employing illegal workers, can we be sure that this is the case throughout our various chains?
With the upcoming VAT reverse charge changes, HMRC are actively investigating firms that may have been associated with fraudulent tax losses and many construction firms and recruitment agencies have received similar correspondence in recent weeks:
Receiving such a letter and the prospect of HMRC investigation is not to be taken lightly. The value of this fraud being investigated is substantial and we know it is not a one-off example, with HMRC reserving the right to impose 'unlimited fines' upon those found guilty of facilitating tax fraud. We recommend that you conduct regular checks on the integrity and compliance of your supply chain to safeguard your company from the fraudulent activity of others.It is also becoming a significantly more frequent requirement for agencies to demonstrate their commitment to supply chain transparency and the steps they have taken when filling out pre-qualification questionnaires. With HMRC’s activity in this area rapidly increasing, especially regarding VAT fraud and the potential transfer of debt, main contractors are focussing far more heavily on ensuring the supply chain beneath them is fully compliant.
It is also becoming a significantly more frequent requirement for agencies to demonstrate their commitment to supply chain transparency and the steps they have taken when filling out pre-qualification questionnaires. With HMRC’s activity in this area rapidly increasing, especially regarding VAT fraud and the potential transfer of debt, main contractors are focussing far more heavily on ensuring the supply chain beneath them is fully compliant.
Here at Stonebridge we conduct regular checks on our subcontractors, including verifying their UTR number with the Construction Industry Scheme office, verifying the VAT number of VAT registered subcontractors to ensure it is valid, and making sure all subcontractors have their own bank account. With these checks, you can be safe in the knowledge that we are maintaining a clean and transparent supply chain, helping to protect your business from any issues.
If you need help in ensuring you are not at risk, please email: compliance@sbcontracting.co.uk where our expert team are ready to help.