HMRC and SIA join forces to clamp down on tax fraud

July 17, 2018

​We have sealed a new partnership with HMRC to tackle incidents of tax fraud in the private security industry.

Both the SIA and HMRC have been working together to identify problems in the sector, including businesses abusing employment rules, running up high debts and taking part in Payroll Company Fraud.

It is estimated that this could be costing the UK economy tens of millions of pounds – money that should be funding vital public services.

The Memorandum of Understanding (MoU) will allow us to share information with HMRC about businesses and individuals working within the sector in order to clamp down on those taking part in illegal working practices and tax fraud. All data sharing will fully meet existing legal requirements.

Simon York, Fraud Investigation Service Director, HMRC, said:

This new partnership with the Security Industry Authority sends a clear message to those trying to cheat the system that this is not acceptable.

Tax fraud is not a victimless crime – it robs the UK of funding for our vital public services like the NHS.

This MoU will help us drive up standards in the sector and ensure there is a level playing field for those legitimate businesses who play by the rules.

Dave Humphries, our Director of Partnerships and Interventions said.

“This MoU will allow us to track businesses with rogue employment models and create a level playing field that ensures that security staff are employed legitimately and treated fairly; and that this standard becomes the norm.”

We regulate a wide range of activities within the private security industry including; Security Guarding, Door Supervision, Close Protection and Public Space Protection (CCTV). *The estimated turnover of the regulated security industry is £3.8 billion.

We also manage the voluntary Approved Contractor Scheme (ACS) which has 835 businesses representing a large proportion of the activity and value in the private security industry. Many of the largest security companies are members of the ACS.

HMRC is the UK’s tax, payments and customs authority and collects the money that pays for the UK’s public services. In 2016/17, HMRC collected and protected £28.9 billion of tax that would otherwise have gone unpaid due to evasion and avoidance.

The purpose of the Memorandum of Understanding (MoU) is to document the arrangements and obligations for the sharing of information between bus and Her Majesty’s Revenue and Customs (HMRC).