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HMRC internal manual

Labour Provider Guidance

Yield and Measures: Future Revenue Benefit

Behavioural Changes as a result of LM interventions can be scored either as Future Revenue Benefit (FRB) or Revenue Loss Prevented (RLP) LPOG10400

Main scenarios where Future Revenue Benefit (FRB) can be claimed:

  • A non-compliant labour provider becomes compliant.
  • A non-compliant labour provider is removed and the workforce taken on by user.
  • A non-compliant labour provider is removed and the replacement labour provider is compliant

Direct tax - previously Intervention Yield

This relates to all direct taxes and is a measurement of the actual increase in tax paid. The actual amount can be scored for a maximum of two years (evidence must be held to support any claim).

How to calculate - compute the actual change over the four months immediately following the outcome of the intervention, then multiply by up to six as appropriate.

Indirect tax - previously Displacement Yield

Where as a result of an LM intervention a non-compliant labour provider is replaced by a compliant business, and the overall VAT yield has increased, FRB can be scored for a maximum of two years (evidence must be held to support any claim).

How to calculate - compute the actual change over the three months immediately following the outcome of the intervention, then multiply by up to eight as appropriate. 

Examples of a range of yield claims for LM Interventions is in LPOG10500

Estimating FRB

If FRB cannot be accurately calculated due to a lack of available evidence the guidance in COG18220 should be followed.


Recording FRB Yield

Any Future Revenue Benefit (FRB) that is scored is reported both internally and externally as part of HMRC’s revenue protection measure. It is open to audit by HM Treasury and therefore it is a condition of any claim for FRB that there must be a strong audit trail to evidence why FRB was claimed and how it was calculated.

The main guidance on FRB is found at COG18200 

Completion of form FRB1 is mandatory and must be used in all cases in FIS where FRB could be scored to give an audit trail demonstrating the reason underlying the FRB claim, the behavioural change brought about by FIS compliance action and the calculations used showing how FRB has been worked out.

The FRB Audit trail template (see FRB1 - FRB checklist in SEES forms and letters) sets out the conditions which must be satisfied for FRB to be scored. If these conditions are not satisfied, then FRB cannot be claimed. Complete the template with the details requested - see COG 18225 for further details. A completion guide has been devised within LM - this is not definitive but might aid completion.

Particular care should be taken to ensure that the correct baseline is used to calculate the FRB i.e. the 4 months for Direct Tax and the 3 months for Indirect Tax immediately following the outcome of the intervention. A different period must not be used where the effect of this increases the FRB claim.

It is also important to ensure that the calculation for FRB is for a maximum of 2 years as appropriate; if you don’t think your labour provider will be compliant for 2 years, then either don’t claim FRB or only claim for how long you think they will be compliant, e.g. 12 months. This is a judgement call by the LMI officer, depending on the information/evidence you have obtained.

NB. Once FRB has been claimed, you cannot claim further Cash Collected yield for the duration of the time FRB has been calculated, so you must be confident that the improved compliance will continue before any FRB is claimed.

Once completed the template authorised by the manager must be filed in EF and Caseflow. 

Results are recorded on Caseflow - guidance can be found under the Compliance Operational Guidance (COG) under Caseflow 2