Q. My accountant has just sent me details of new Corporate Criminal Offences, which seems to imply I must check that my clients and suppliers are not tax evaders. Does this really apply to 1 man limited company contractors? What do I need to do about it?
A. The Criminal Finances Act 2017 makes companies & 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.
For a firm to be liable under the Act, there must have been:
If your company does not employ staff or engage external sub-contractors etc, then it is difficult to see how the Act applies to your situation. However, further guidance can be found by here: Tackling tax evasion: Government guidance for the corporate offences of failure to prevent the criminal facilitation of tax evasion.