Only last week we heard that several recruitment consultants had received tax demands from HMRC relating to unpaid tax on incentive payments received from one or more umbrella companies. If recruitment agency staff accept monies, vouchers and other types of benefit from umbrella providers, they should be declaring this as taxable income.
The Government is taking this issue seriously and the actions being taken within the next two years will highlight not just taxation but also the UK’s bribery laws. This will focus on tackling corruption and one of the main aspects of the Bribery Act is provision for companies to be prosecuted for failing to prevent their employees from being party to bribery.
On the 8th February 2018 the Attorney General Jeremy Wright made the following statement at the House of Commons ‘In the Bribery Act 2010 the UK introduced world-leading legislation on bribery, making it a criminal offence for a company to fail to prevent a bribe being paid. We are starting to see the effectiveness of the offence in holding large companies to account, through the first conviction of a corporate entity and three deferred prosecution agreements.’
Recent statements claim that regulators are cracking down on hospitality. If you engage in corporate hospitality, the rule should be to keep it moderate and infrequent. In addition, always think carefully about the business rationale and intent behind the suggested activities you are participating in.
With recent circulations regarding the Bribery Act into the public domain, now would be the time to ensure you are not putting your company and staff at risk to be prosecuted from fines, paying tax on gifts/hospitality or imprisonment.
The Ministry of Justice has six principles for bribery prevention that should be a main focus for any organisation of any size:
1. Proportionate Procedures
The policies and procedures a commercial organisation has in place to prevent bribery should be proportionate to the bribery risks the organisation faces. Procedures should be aligned to the nature, scale and complexity of the organisation’s activities, while also being clear, practical, accessible and effectively implemented and enforced.
2. Top Level Commitment
The top-level management of a commercial organisation (board of directors, the owners of the company or any other equivalent body or person) should be committed to preventing bribery by encouraging bribery prevention procedures.
3. Risk Assessment
For any anti-bribery process to be consistently effective, the organisation must assess the nature and extent of its exposure to potential external and internal risks of bribery on its behalf by persons associated with it. As business operations change and evolve, so will the risk facing the organisation and it is therefore imperative for regular re-assessment to be undertaken.
4. Due Diligence
Due diligence procedures must be applied, taking a proportionate and risk based approach, with regard to the individuals who perform or will perform services for or on behalf of the organisation. Due diligence procedures are both a form of bribery risk assessment and a means of mitigating a risk.
5. Communication
Organisations need to ensure that that bribery prevention policies and procedures are practiced and communicated to all employees. Communication should include training and general training provided to new employees.
6. Monitoring and Review
Organisations should monitor and review procedures designed to prevent bribery by persons associated with it and make improvements where necessary.
Here at ePayMe we let our products and service offerings together with market leading value for candidates provide the incentives that are needed.