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HMRC internal manual

Labour Provider Guidance

From
HM Revenue & Customs
Updated
, see all updates

Interventions: fraud and construction: Measures and yield

Methods of preventing tax loss and generating additional yield

  1. VAT Assessments - these are issued against the main contractors and the buffers for denial of input tax.
  2. Reg. 13 Determinations - issued against the contractor for failure to make deductions from Subcontractors.
  3. Reg. 80 Determinations (PAYE) and Section 8 Decisions (NIC) - would be raised against the contractor/ Employer, to recover both PAYE and Class 1 NICs on payments to workers who have been re-categorised as employees.
  4. Debt Due to the Crown - issued where unauthorised VAT invoices have been issued.
  5. Future Revenue Benefit - This can be claimed where we can illustrate that we have brought about a change in the behaviour, which results in additional tax yield to HMRC, and normally occurs as a result of end user work.
  6. Revenue Loss Prevention - Direct tax: We can claim this when we have successfully removed Gross Payment Status (GPS) from a non compliant subcontractor. It is currently calculated by looking back at any tax lost prior to the subcontractors move to net status. We can look back at any tax lost in the previous 24 months.
  7. Revenue Loss Prevention - Refusal of a VAT registration to prevent tax loss.
  8. Revenue Loss Prevention - Compulsory VAT deregistration to prevent further tax loss.