Recruiters have been warned to ensure they are not breaking the law over the way in which they implement travel and subsistence schemes, according to Sally Hewick, general manager, North at Right4staff and the Recruitment & Employment Confederation’s industrial chair.

Speaking at the launch of the REC’s new industrial sector group, Hewick said: “If schemes are used we need to make sure that they work not only on paper, but also in practice. On the ground we are continuing to see cases where these schemes are not operated correctly.  Policing of those schemes by HM Revenue & Customs (HMRC) is of the utmost importance.

“REC Industrial is also calling on HMRC to go one step further and provide facts and figures on providers examined and the levels of revenue collected through compliance.  Members need to conduct due diligence on umbrella companies with whom they work to ensure they abide by the current tax rules.”