Labour Supply Chains – Joint and Several Liability

Government has published a new Policy Paper in regard to the joint and several liability principle in labour supply chains which include an umbrella company.

This confirms that Chapter 11 of the Income Tax (Earnings and Pensions) Act 2003 will be introduced as planned.

Those holding out in the vain  hope of a budget u-turn will have been disappointed last week.  You should review your labour supply chains to ensure that you are confident that PAYE and National Insurance Contributions are correctly calculated and paid across.  Due diligence measures will be more important than ever.

• Do you know how workers in your supply chain are engaged and by whom?
• Do you check that PAYE and NIC deductions are correctly calculated?
• Do you check that PAYE and NIC deductions are paid across to HMRC?
• If you benefit from any form of cost savings on the supply, do you know how that is generated?

Can you answer yes to all of these questions?  If not, we would recommend that you urgently review your due diligence process to manage the risk that this presents to you. 

Contact us to arrange a free, no obligation discussion.  

Read the paper here

See our previous article on this subject here