Proactive due diligence software that protects your business from CIS fraud liability. Monitor your subcontractor supply chain, document your compliance efforts, and be prepared if HMRC comes calling.
What's at Stake
Even if you had no involvement in the fraud, HMRC can hold you responsible if you "should have known" something was wrong.
Your Gross Payment Status can be cancelled immediately, with 20% deducted from every payment you receive. You cannot reapply for 5 years.
You could be held liable for the tax that someone else in your supply chain failed to pay—even if you're five levels removed from the fraud.
On top of the lost tax, HMRC can charge penalties of up to 30%—and these can be charged personally to directors and officers.
How Tax Radar Helps
The CIS Compliance Suite gives you oversight of your entire supply chain and creates the evidence trail you need to defend against HMRC enquiries.
Automatically monitor your subcontractors against key risk indicators. The system checks Companies House data, GPS status changes, VAT registration validity, director histories, and more—alerting you when something changes that requires attention.
Each subcontractor receives a dynamic risk score based on multiple factors including company age, director history, payment patterns, and supply chain position. The system flags potential issues—like phoenix company indicators or uncommercial pricing—before they become problems.
Understand your exposure across your entire supply chain, not just your direct subcontractors. The system tracks supply chain depth and escalates due diligence requirements proportionally—because HMRC's GfC12 guidance makes clear that long supply chains are a red flag.
Generate comprehensive risk assessment reports that document exactly what due diligence you performed and when. If HMRC opens an enquiry, you have a complete evidence pack demonstrating you took reasonable care to verify your supply chain.
Your Defence
The "knew or should have known" test is objective—your intentions don't matter, only whether warning signs were present and whether you acted on them.
Detailed documentation of every risk assessment performed, including:
Demonstrate ongoing vigilance with documented records of:
Evidence that you followed a systematic process:
One-click export of all documentation for any subcontractor:
Field Verification
Some things can only be verified by someone on site. Tax Radar lets you send verification questions to project managers who can confirm what the paperwork can't tell you. All responses are timestamped and stored as part of your evidence trail for HMRC defence.
The time to establish your due diligence procedures is now—not when HMRC opens an enquiry. Speak with our team about how Tax Radar can help.