Sub-Contracting Guidance from HMRC

11 July 2017


With the event season entering a busy period we want to remind all security businesses of their responsibilities when using subcontractors. This includes the use of subcontracted labour when providing security industry services.

Security businesses should have suitable due diligence checks in place to be confident that the individuals deployed by them whether directly employed by you or supplied by sub-contractors or labour providers, are who they say they are, are fit and proper, and hold a valid licence for the activities that they will be undertaking. 

If you use labour supplied by a third party then this information will help you understand how to safeguard your business from financial and reputational risk whilst maintaining the flexible workforce you need.

This guidance looks at:

  • Undertake checks on your labour supply chain
  • What to check
  • If you don’t undertake checks
  • Guidelines to help you undertake the checks
  • Tell HMRC about your payroll outsourcing
  • Verifying VAT registration details
  • Reporting concerns about potential compliance issues
  • Reporting concerns about exploitation

As a security business, please ensure you follow HMRC guidance regarding due diligence record keeping for the use of labour providers. Details on due diligence for the use of labour providers can be found on the HMRC website.