• Risks to the business - by performing risk assessments to determine what those risks are and how to mitigate them • Their compliance with legal, financial and social obligations to safeguard against risks within business supply chains • Their suppliers’ tax and legal compliance • The risks of modern slavery and exploitation Act
Where risks are identified, they should not be ignored, and businesses should take steps to mitigate or remove the risks in full by:
• Acting on risk assessments by setting up effective systems and processes for due diligence • Knowing their suppliers – not assuming tax compliance and checking the credibility of directors • Understanding the workforce of suppliers – and the relationship between the workers and the provider of labour • Understanding the length of their supply chain • Knowing their suppliers • Review
Effective due diligence requires continual monitoring and review, including: • Due diligence procedures that are risk-based, reasonable, proportionate and ongoing • Live risk management to stop or prevent harm before it occurs
The due diligence checks performed will be relevant to each individual business and it is their responsibility to determine which checks are reasonable and proportionate for them to carry out. Completing checks will also ensure that businesses adhere to their legal obligations.
There are some further helpful tips in ten things about due diligence.
In order to understand and approve a supply chain, there are various steps that a business must take and they must ensure that workers are paid properly.
Failure to apply appropriate checks or to act where required can lead to businesses being fined and they could also become liable for any unpaid tax and National Insurance (NI) contributions. They could also be prevented from operating entirely and risk having their reputation damaged substantially.
To ensure the correct due diligence checks are being applied to supply chains, read the guidance in full here.
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Have your say on the future of the GOV.UK pages 26 May 2021
There is still the opportunity to get involved with improvements to the GOV.UK pages , so don’t delay and take this chance to have your say!
Research is being undertaken to improve the GOV.UK pages and to ensure that the website works efficiently for those people who use and need it.
In order to help, individuals must be aged 18 or over, and live in the EU. There is a note that participants aren’t required to be tech or internet savvy in order to join.
Initially, there will be a short survey to complete which assesses how individuals use computers, and answers provided will ensure that they get invited to research that is relevant to them. Answers will not be shared with anyone else. Once sign up is complete, participants may be asked to:
• •
Trial new online transactions Answer more questions by email
• Talk to researchers about how they have interacted with the government in the past
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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