Find out what you should be doing to prevent tax evasion and how Solutio can help.
Are you sure your company is abiding by the Criminal Finance Act? Remember that bill from 2017 that had your accounting team’s head spinning? It’s coming back to haunt us.
On the 9th of September 2020, the UK Lord Chancellor spoke at the University Of Cambridge about the government’s plans to combat economic crime.
During his speech, he referenced The Criminal Finance Act of 2017, a law that states companies can be held liable for fines or even prison time if they ‘fail to prevent’ tax evasion.
“In their current form, there is concern that the law on corporate criminal liability does not always appropriately criminalise corporate misbehaviour, especially when applied to large corporations. Reform may indeed be needed to ensure that organisations of all sizes can be held to account and serious crimes can be punished appropriately.”
It appears that 4 years on, they’re now revisiting this Act, so we thought it would be an excellent time to give you a refresher on what the Act means, how it can affect your company, and the best part – how we can help!
Okay, so it’s been quite a while since you’ve seen this topic discussed. Maybe you met with your team about it 4 years ago, implemented some procedures, and hoped your accounting department would follow them.
But have you been conducting regular checks to ensure you’re complying with the Act? If you haven’t, now is the time. Let’s start by jogging your memory on what The Criminal Finance Act is:
Back in 2017, the Act introduced a range of new offences to crack down on financial crime. Included were two specific violations related to tax evasion, which were previously very hard for the government and HMRC to enforce.
Part of the reason was that there wasn’t enough evidence or proof that companies had an awareness of their employees’ schemes. So the UK government and HMRC brought in these two new offences; the failure to prevent the facilitation of tax evasion in the UK and the failure to prevent the facilitation of tax evasion overseas.
In other words, any company that knowingly or unknowingly helps someone evade taxes could face fines if they don’t have an anti-fraud policy in place. The government also made it clear they’d have no issue publishing the names of these companies.
“The new offences will ensure that companies doing business in the UK take reasonable steps to prevent their staff from facilitating tax evasion.” – Financial Secretary Mel Stride MP, 2017
Companies can no longer claim ignorance as a defence for someone committing tax fraud. If an employee aids in the evasion of taxes, even if unknowingly, they will be liable under UK law.
So, if your company hasn’t implemented compliance procedures to ensure you’re doing everything in your power to stop clients/ employees from evading taxes, your reputation and profit are at risk.
Maybe you don’t have the resources to implement compliance procedures for this Act or aren’t sure if you’re following it to the letter. Solutio is a fantastic solution that helps you adhere to the Criminal Finance Act in several ways.
To fully comply with the Criminal Finance Act, we will talk through the 6 compliance procedures the government recommended you follow and how Solutio helps you follow them.
Solutio is your all-in-one solution for payroll and compliance. It automates time-consuming compliance procedures, let’s you store all your documents in one place and offers comprehensive analytics to monitor your entire organisation’s tax records.
If you’re a recruitment agency or an umbrella company, you’ll be able to manage all your employee and third party records without switching between multiple platforms.
Using Solutio not only helps you comply with the Criminal Finance Act it also automates compliance for other financial regulations like PAYE and holiday pay. See how you can save time and streamline your entire payroll process with Solutio today by booking a demo with one of our team. Low monthly fee, no long contracts.
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