A new policy was announced in the March 2013 Budget on the use of the procurement process to promote tax compliance. The new policy applies with effect from 1 April 2013 to all central government contracts over £5 million. Suppliers bidding for these government contracts must self-certify their tax compliance.
This note replaces Action Note 04/13 dated 28 March 2013. It sets out the scope and background of the new policy, advises on how to take account of it in procurement documentation and provides further detailed guidance on how departments should assess suppliers’ responses and the inclusion of new clauses in contract terms.