Tax default disgrace – why all contractors should vet their payroll provider
Every quarter, HMRC names and shames the largest deliberate tax defaulters (owing >£25K) – and last week they threw two key payroll providers’ reputations into disrepute. We’re taking this opportunity, therefore, to highlight once again the need for contractors to exercise extreme diligence and caution when selecting who they work with.
Superpower Payroll Ltd deliberately withheld £1.5m in tax, and TM Payroll Ltd owed £736k. Even more worrying, perhaps, is that a director of TM Payroll also shows on the Companies House website to be a Director/Secretary of 32 other recruitment or payroll companies!
You can view the full list here: HMRC Current list of deliberate tax defaulters (Sept ’16), and you should be aware that HMRC only publish details where the company hasn’t made a full and immediate disclosure before / during their investigation.