Interventions: education and due diligence: introduction
The Fraud Investigation Service (FIS) Labour Market (LM) Strategy has been developed from 10 years of experience in tackling serious non-compliance and fraud across all sectors of labour supply. It aims to identify and prevent fraud and serious non-compliance in the labour supply chain and support a level playing field for compliant businesses.
One element of our approach is aligned to HMRC’s promote and prevent strategy and seeks to influence behaviour by encouraging and educating labour providers and their customers in adopting a due diligence approach.
Due diligence is explained in the leaflet (PDF 316kb)and creates an opportunity for us to conduct an informal visit to establish current practices and support businesses in complying with HMRC obligations. The aim is to provide advice and where appropriate support the business in taking steps to get things right for the future.
This is a voluntary interaction with the customer and all communications should clearly state that we have not opened a formal enquiry into the affairs of the business. All visits to the premises should be with the consent and cooperation of the business however if at any time that consent is withdrawn the meeting should be ended and officers must leave the premises.
The meeting should concentrate on developing an understanding of the operation of the business and ensuring accurate interpretation and application of HMRC obligations. Advice and guidance should be given on implementing due-diligence practices and procedures. Where concerns are identified clear instructions and assistance must be provided to ensure current compliance and an undertaking obtained from the business to put things right for the future.
If this undertaking is not freely given officers should withdraw from the meeting and consider appropriate follow-up action in consultation with the team leader.
Caseworkers should be aware of the need to consult and refer cases to other LM and FIS Teams and to liaise with the relevant Customer Compliance Manager (CCM) if appropriate.
Business returns and remittances should then be monitored to establish and confirm the impact on behavioural change before claiming the appropriate measure. LPOG10100
All cases should be team worked and input sought from Team Leaders for advice.