Pendragon Comply

Beyond the ordinary in delivering compliance 

Driving Compliance from the Back Office to the Boardroom

While outsourcing contingent labour can save you time and money, it can also expose businesses to NIC, PAYE, and employment law risks. Due diligence can help ensure the integrity of the supply chain and help to make informed business decisions. Pendragon Comply can help you to protect your business by vetting the suppliers you have selected to provide labour supply for legality, legitimacy, credibility, employment and tax compliance. Our expertise and unrivalled knowledge in this field, means we are able to report our findings and leave you to decide on the level of risk you want your business to take on.

Compliance & Due Diligence Services

We advise Businesses and Agencies on how to reduce the risks when engaging off-payroll workers, contractors, gig workers and freelancers; providing up to date information on changes to legislation and practical advice on the impact to your business.

What Services Do We Offer?

Contingent Labour Due Diligence

Labour Supply Chain – Business Protection through monitoring

Intermediaries Compliance & Audit Checks on behalf of Employment Businesses and End Hirer organisations

Employment Business due diligence checks for end hirers

Preferred supplier list (PSL) creation for hirers and agencies

Payslip, RTI and Payment Audits when using outsourced payroll and umbrella services

Company Due Diligence – AML, Source of Funds, Negative Media, Insurance and Director Checks

Solutions – Direct for Business

Pendragon Comply work with SME’s to large organisations enabling them to engage contingent workers using compliant methodology. Pendragon Comply provides business protection giving you peace of mind by driving compliance from the “back office to the boardroom”. Making compliance a business critical matter, ensures your whole company is focused on gaining market share through ethical and competitive means; which in turn helps you to attract, engage, employ and retain the very best skills available within the contingent marketplace.

Outsourced Compliance Management

Here at Pendragon Comply, we have a team of experts with decades of unrivalled expertise within intermediaries compliance. Our compliance management service is designed to work alongside your inhouse team to safeguard your business. By letting us do all the work and keeping you updated with the latest legislation and tailoring our service to compliment your business processes; we leave you free to focus on what you do best.

Outsourced Labour Supply Chain Audits

It is important that all the legislation is considered and dealt with correctly and compliantly, especially as organisations are being asked to make changes to the way they engage contingent workers .

Your company is now required to provide additional information and checks to safeguard all parties in the supply chain as liability for non-compliance can be transferred to the directors of all companies in the chain, and that is where Pendragon Consultancy can support you.

Business Protection from Tax Avoidance Schemes

There is more to protecting your supply chain than using Accredited Umbrella companies and creating a PSL. Promoters of tax avoidance schemes

are sophisticated and have a lot of money to invest c£500M-£1M is the typical cost of getting a solution from concept to market, so they need to be successful to recoup their outlay.

They have a network of businesses that front and support their operations and are sophisticated operators. They are not likely to be tripped up by basic compliance processes and that’s where Pendragon Comply’s specialist team can assist. 

Why do You Need a Preferred Supplier List?

Best Value & Cost Saving

A preferred supplier list ensures that your suppliers provide the highest value in terms of pricing, quality, financial stability, and contract performance for your company. Your negotiation power will increase as you work with recommended suppliers, allowing you to negotiate better pricing and save money.

Better Decision Making

Data-driven decision-making is essential to effective procurement, and compiling a preferred supplier is the ideal way to go about it. Your list should make it easy for your company to acquire supplier information. The simplest method is to employ a digital e-sourcing system that connects internal and external parties while also providing up-to-date and appropriate data for decision-making.

Risk Management

A preferred supplier list can help control commercial and legal risks. It is one of the most significant benefits for a recruiter; If your suppliers share your values and are compliant with key legislation, you can decrease your exposure to certain regulations and help keep your company secure in the long run.

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Supply Chain Due Diligence: 10 Things To Know

Here are some things HMRC list and want you to consider while conducting due diligence on your labour supply networks. The list is not exhaustive, and it varies depending on the type of business.

You must determine which checks are necessary, when they should be performed, and how frequently they should be performed. You should keep a complete record of all checks you perform. Inspections done solely with respect to your direct suppliers and customers may not be sufficient. It's also necessary to think about the supply's credibility, payment arrangements, and other factors. 


Make sure that the labour supplier is authentic and legitimate. You must know who your workers are, where they come from, how they are paid, and the legitimacy of all other arrangements.

Verify VAT Registration

Verify your labour suppliers' VAT registration. If it can be demonstrated that you knew or should have known that transactions you made were connected to VAT fraud, you may lose your right to recover the tax you paid on these transactions.

Labour Supply

If the business fee is set too low, the supplier will struggle to pay its statutory tax requirements. It could be a sign of exploitation, modern-day slavery, or unlawful labour. So, make certain that your labour supply is commercially viable.

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You must ensure that workers are paid at their contractual rate, complying with the NMW Act.

PAYE Accountability

If you provide workers or hire an agency or temporary workers, you must choose who should be in charge of PAYE. If you don't account for your PAYE and NI contributions appropriately, you could be held accountable for them.

CIS Compliance

If you work in the construction industry, be sure you know the Construction Industry Scheme (CIS) terms. Failure to follow CIS guidelines can result in you paying CIS deductions, interest, and penalties. Plus, your gross payment registration may get cancelled by HMRC.

Intermediary Reporting

If you hire workers through a third party or outsource your payroll, examine the employment intermediary reporting and travel & subsistence arrangements to make sure they meet HMRC standards.

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Tax Evasion

To avoid criminal assistance of tax evasion, be aware of the penalties for company failure. Organisations should consider putting in place reasonable processes to prevent anyone acting on their behalf from criminally facilitating tax evasion. Failure to do so may result in criminal charges and fines that are uncapped.

Off-payroll Regulations

Be mindful of your responsibilities in situations where an individual works through their own intermediary. As a public sector entity, you'll need to determine whether the off-payroll working regulations apply and, if so, who should handle PAYE. If you work for a medium or large commercial or volunteer sector organisation, you must examine whether the off-payroll working regulations apply as of April 6, 2021.

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Lets us help you shape your compliance standards process

This is an opportunity for you to engage Pendragon Comply as a relevant and necessary partner in the effort to shape your compliance business processes into being an effective deterrent against non-compliance and tax avoidance schemes that would be harmful to your business, staff , long-term profitability and future sale. 

For many, this will require a profound transformation, for a few it will still be a journey of discovery. So why bother? Agency clients expect more from the service they receive. A basic job filling service doesn’t find them the skilled candidates they need to do the work but they still want a competitive price.

As an Agency you are expected to attract and place the right candidate in those jobs and to do that you must do right by the temporary worker or contractor. Exposing them to high fines because you enabled tax avoidance scheme operators to work within your business is on YOU. Lack of knowledge is not a defence in law. The power is held between the end client and agency and that is why it is so important to do the due diligence. Others in the supply chain like umbrellas, accountancy service providers and workers will then have a secure framework from which to operate within the rules.