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Taking on extra staff to cover the Olympics?

Businesses across the UK are anticipating busy trading activity during the Olympics and it is expected that many will take on temporary staff to cope with increased demand. With that in mind, HMRC is reminding business owners to be extra cautious when employing temporary staff through labour agencies for any kind of work during seasonal and market demand.

Businesses operating in the leisure and construction sectors, including catering, food processing, hotels, security and builders, are being warned that they could inadvertently be hiring employees who are working illegally in the UK, or who are earning below the national minimum wage. Agencies who supply such temporary staff, known by HMRC as ‘gangmasters’, may also fail to pay the correct, if any, VAT, national insurance contributions and PAYE deductions.

As a precaution, HMRC has said that businesses should avoid involvement in supply chains by remaining alert and consulting with agencies. Where possible, businesses should check that agencies have, or require, a Gangmaster Licensing Authority (GLA) licence, and that they are paying VAT and other taxes by checking for false invoices.

We can advise on issues regarding contracting staff. Please contact us to find out more.