The Guardian reports that a scheme using mini-companies with directors in the Philippines is closing with around 2000 of these companies being simultaneously liquidated.
This has come about following HMRC’s fraud and investigation service asking for details about the large number of VAT registration applications made by Anderson last year. The liquidation of these mini-companies could prevent HMRC recouping unpaid taxes, however it does send out a signal to the marketplace suggesting that the model might not actually work in practice.
As is often the case, end-clients were unaware of what was taking place within their supply chain, and we know from recent research that reputational damage is now in the top 10 concerns that keep CEOs awake at night, so we would expect hirers to now take a more active interest in being assured of compliance throughout their supply chain.
If you are a recruiter you can minimise risk when partnering with firms by only choosing FCSA Accredited Members who are rigorously tested annually for adherence with our compliance code, which does not allow such models with offshore directors.
