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Choosing the right provider

As a contractor, HMRC requires that you perform a range of due diligence checks before you appoint a labour service provider –  you cannot rely on the defence of ignorance if you were to fail a status inspection. “We didn’t know” will not appease HMRC.


As a result it is vital when engaging any CIS intermediary that you be supplied and fully understand how their business works and how the operate within the parameters of the legal framework they operate under.


HMRC are now actively pursuing non-compliant payroll providers and have set up a Special Investigations Unit to combat fraud and the general non-compliance that results in significant loss of UK tax revenue.  If your provider has cut corners or is errant, the employment relationship will be invalid and the bill for the tax that has been evaded will land on your desk.

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