Letters you might receive from HMRC about your supply chain
Information and purpose of supply chain letters.
When HMRC is undertaking activity associated with your supply chains, you might receive the following letters.
These letters:
- tell you that your business is connected to fraudulent activity through your transactions within a supply chain
- prompt you to review your business’s assurance practices and check the integrity of your supply chains, considering this information
- tell you about the potential implications of being connected to this fraud
HMRC can not disclose the details of the business that has committed the fraud. However, we can tell you the supplier that you have a direct contractual relationship with, to help you find the chain where we’ve identified fraudulent activity.
It is important to note that by identifying your immediate supplier, we are not saying that they have done anything wrong. It allows you to focus your initial supply chain checks, beginning with the named supplier.
You need to consider the immediate risk, and how to prevent or reduce the likelihood of it happening again.
These letters:
- tell businesses that a supplier in their supply chain has been deregistered for VAT by HMRC
- prompt the business to review its due diligence and ensure their own treatment of VAT is correct
Tax loss and ‘VETO’ letters highlight a risk in a specific supply chain, but we prompt you to review your practices as you may also be exposed to other risks that you do not know about.
HMRC notifies contractors when a sub-contractor’s tax treatment changes. Businesses should receive automated letters or notifications through their CIS tax account.
These letters tell the contractor business that from a specified date they need to make payments that reflect the change.