Labour Supply Chain and Risk: Podcast series

Welcome to our podcast series focusing on all aspects of your Labour Supply Chain. Recently, there has been a marked growth in alternative models, from agencies, to umbrella companies and platforms such as the gig economy - this growth has been driven by client demand for a flexible, immediate workforce to meet the business resource needs, but also the workers themselves often due to lifestyle choices.

This has meant the usual obligations for an employer have become more complicated and often the lines appear blurred between the obligations of a traditional employer and those of an engager choosing alternative resourcing solutions to fill the void of employees. Now is the time for organisations to understand the accompanying risks and implement robust mitigation strategies.


Episode 6: Corporate Criminal Offence – How does it affect employers?

For this edition, we are joined by Karen Riley (Tax Director) from our National Tax Risk team. Karen and John discuss the latest updates on all aspects of Corporate Criminal Offence (“CCO”) legislation.

The Corporate Criminal Offence (CCO) legislation means that if an “associated person” of a business criminally facilitates tax evasion, and the business is unable to demonstrate that it had reasonable procedures in place to prevent such facilitation, the business is guilty of a criminal offence.

An “Associated person” is defined widely and includes any person (individual or corporate) who represents (or provides a service for or on behalf of) the business - employees, contractors, agents, and in certain circumstances external suppliers.

As supply chain models get more sophisticated, clients as engagers must keep up with their employer obligations and ensure that not only are they compliant but their suppliers are too.

This has meant the usual obligations for an employer have become more complicated and often the lines appear blurred between the obligations of a traditional employer and those of an engager choosing alternative resourcing solutions to fill the void of employees. Now is the time for organisations to understand the accompanying risks and implement robust mitigation strategies.

BDO’s CCO Toolkit can help your organisation take the first steps towards remaining compliant.

Download our latest podcast to understand the risks and how the CCO can link to your employee strategy for the year ahead.

Speakers: Karen Riley (Tax Director) National Tax Risk team and John Chaplin (Partner,  Employment Tax)


Episode 5: National Minimum Wage - Key impacts for employers

For this edition, we are joined by Caroline Jones (Tax Director) and Kyle Newton (Senior Manager) from our National Employment Tax team. Caroline and the team discuss the latest updates on all aspects of National Minimum Wage (“NMW”) legislation.

The National Minimum Wage was introduced in 1999 and in its 20-year history has transformed the UK’s labour market. Today, HMRC has an enforcement budget for NMW of over £27m and uses approximately 450 inspectors spread across 30 locations. In a recent Government press release there is an alarming, but not a surprising statistic: “since 2015, the budget for minimum wage enforcement has doubled with the government having ordered employers to repay over £100 million to 1 million workers.”

NMW activity occurs in all sectors, but we tend to see more in the retail, hospitality, travel and leisure, manufacturing, care, and financial services sectors (particularly those businesses with call centres).

The podcast covers everything that employers need to know to stay on the right side of the legislation. Many employers will be paying well above NMW rates but can still fall foul to underpayment issues. Listen to the podcast for the full round-up of issues to note, and read our NMW guide for 2022.  

Speakers: Caroline Jones (Tax Director) and Kyle Newton (Senior Manager) from our National Employment Tax team


Episode 4: Coronavirus Job Retention Scheme update

We are joined by Matt Harrison and Jon Claypole to discuss the latest updates around the Coronavirus Job Retention Scheme (“CJRS”). Jon is part of BDO’s Tax Dispute Resolution team, and Matt is an Employment Tax specialist. The group cover HMRC activity around CJRS, especially the concept of ‘furlough fraud’. We are all aware from the media that furlough fraud is a sensitive topic. HMRC have dedicated a new £100m taskforce to tackling fraud and are sending out ‘nudge letters’ to prompt employers to check their enquiries. It is important to make sure that all claims you have made are checked as any errors must be reported to HMRC and corrected – read more on the HMRC’s CJRS enforcement rules and powers. Our recommendation is to get furlough claims checked – the scheme was introduced hastily and employers had a huge amount to deal with. Errors are common, and a review will ensure you can avoid penalties from HMRC.

Speakers: Caroline Harwood (National Head of Employment Tax), Jon Claypole (Partner, Tax Dispute Resolution) and Matt Harrison (Tax Manager, Employment Tax)

Episode 3: Labour supply chain in the Manufacturing sector

Join the Employment Tax team as we are joined by Richard Austin, BDO’s Head of Manufacturing. We discuss the impact of current workforce challenges on the sector. Manufacturers are like many other industries in that they are currently struggling to retain their people at both blue- and white-collar level. Competition is high as employers adapt their businesses to reward people, and so we expect inflation across the sector. There is also a focus on National Minimum Wage compliance and added risk as the industry look at developing junior staff as a priority.

Speakers: John Chaplin (Partner,  Employment Tax), Rob Woodward (Associate Director, Employment Tax) and Richard Austin (Partner and Head of Manufacturing)

Episode 2: Using umbrella companies to weather the storm

Over time, the role of the umbrella company has evolved, with some agencies using them as a way to outsource the administrative obligations associated with hiring and paying the short-term workers their clients require, rather than simply making use of any tax breaks associated with umbrella employment. Join John Chaplin and Rob Woodward from BDO's Employment Tax team as they update you on the current status of umbrella companies and why using one to help bridge issues around staffing may be a bigger risk than expected.

Speakers: John Chaplin, Partner, Rob Woodward, Associate Director, Employment Tax

Episode 1: Labour supply chain - key employment tax risks

For a large number of office workers, it used to be so simple. Pre-pandemic, you went to the office. During the pandemic, you stayed at home. Now, it’s a confusing and difficult balance for employers to strike when looking to remain compliant with their employees ‘working from anywhere’. Listen to our new podcast focusing on Labour Supply Chain issues, featuring John Chaplin and Mark Seaden from our Employment Tax team. Mark outlines his three key employment tax areas to consider when re-working your remote/home working policy: Review, document and communicate. 

Speakers: John Chaplin, Partner and Mark Seaden, Employment Tax Director