Criminal Finance Act – as of 30 September, your RISK has significantly increased.

November 13, 2017eps_admin

You need to be aware of this Game Changer and the impact on you personally… Are you putting yourself at risk of a prison sentence?

The Criminal Finances Act 2017 came into law at the end of September and will make companies and partnerships criminally liable if they fail to prevent tax evasion by either a member of their staff or an external agent, even where the business was not involved in the act or was unaware of it.

Any employees, contractors or external agents found to be:

promoting selling schemes facilitating or failing to prevent….

…tax evasion. It is the company that will be liable for the potential punishments that could be both a conviction and unlimited penalties.

Due to this game-changing legislation we need to make some changes to protect both Easypay and our customers.

We intend to review all umbrellas being used by our customers and put together a Preferred Supplier List (“PSL”). This will be a list of umbrellas that can be seen to:

be operating compliant models or are audited by a reputable firm of accountants or are audited by a professional body such as the Professional Passport.

Should your workers be using an umbrella not on the list but you believe the company and model to be reputable you will need to provide supporting evidence so that we can assess if we feel comfortable sending funds to them and putting you or Easypay at risk.

What you need to do:

Make your workers aware of the legislative changes and the implications. Ask your workers to be liaising with their employer, the umbrella, for them to provide proof of their reputation and model being used. Liaise directly with the umbrellas used by your workers to ascertain proof of compliance with current HMRC legislation or HMRC approval.

The risks to you personally are too great not to act to protect yourself.

We will keep you informed of our progress and will not make any changes without prior communication.

If you have any questions please do let us know – email

For further reading here are a couple of links to HMRC information:

HMRC detailed guidance (download PDF)Criminal Finances Act 2017