The BBC have run a special investigation on the use of offshore providers and the risks to recruitment companies and end clients.
We have been highlighting these issues for a number of years.
We are aware that many end clients will be completely unaware that some of their temporary workers could be engaged through offshore structures as you will only receive an invoice from the recruitment partner or RPO.
Workers using offshore structures are not limited to the Public Sector andthe chances are if you are a user of temporary workers you could very well find that some of your workers are engaged through offshore arrangements where the Employers National Insurance has not be paid. As a result this liability will be building and you could find that HMRC pass this across to you the user of the workers.
If you do not independently check your supply chain compliance or have not put processes in place to agree providers with your recruitment partners then you are likely to be exposed.
This is an area that Professional Passport has expertise in and we are happy to work with end clients to assist them in securing a compliant supply chain and remove the risk of unexpected debts. We have a range of support services so feel free to contact usto see how we can help.