21st May 2018
There can certainly be no doubt that tax compliance is the key word in the world of contractor recruitment at the moment – and it will only become more important in the coming months. With numerous Acts and regulations being introduced in recent times, agencies and the freelance professionals they place are certainly facing a more complex compliance arena where the penalties and risks are arguably greater than they have been.
The Right to Correct rules
In latest developments, tougher penalties are set to be introduced later this year which could see those with undeclared offshore assets facing up to 200% fines of the money owed. Under the Right to Correct (RTC) rules, anyone with undeclared offshore tax liabilities related to income, capital gains or inheritance tax can be presented with a minimum 100% fine of the amount owed. Those facing charges can also expect to see a 10% levy on the value of their assets.
Ahead of the October introduction, HMRC is encouraging anyone to disclose any relevant offshore liabilities or non-compliance dated before 6th April 2017 in order to avoid hefty penalties and minimise the risks to their business.
One of many moves
This latest development is just one of many steps that HMRC is implementing as the fight against global tax evasion continues and follows the introduction of phase two of the Criminal Finances Act 2017 (CFA). As we’ve mentioned in many previous posts, recruitment firms, particularly agency owners, need to make compliance their number one priority.
At 6CATS International we fully recognise that recruiters face numerous pressures and, as such, their attention is often pulled in multiple directions. However, with the likes of the CFA and the Right to Correct Rules being introduced, the possible risks associated with contractor placement are growing, and will only continue to do so.
For firms that wish to continue to profit in this lucrative field, seeking expert guidance is now more critical than it has ever been. Speak to our specialist team today and follow us on social media to stay up-to-date: