HMRC Compliance in the Security Sector

August 6, 2025

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The rules are changing. Is your security provider putting your business at risk?

At Professional Security, we don’t cut corners. We believe in fair pay, full compliance and doing things by the book because it protects our clients as much as our people. But across the UK security sector, that’s not always the case.

Some providers are still undercutting the market through tax evasion, off-payroll models and shady subcontracting chains. That might have slid under the radar in the past but starting September 2025, it won’t anymore.

HMRC Is Coming and You Could Be Held Liable

HMRC has made it clear: if your security provider is non-compliant, and you haven’t done proper due diligence, your business is also at risk.

HMRC can shift a supplier’s unpaid tax onto you
You could lose your right to reclaim VAT
You may face prosecution under the Corporate Criminal Offence Act
Your brand could suffer permanent reputation damage

This isn’t just about paperwork. This is about real business risk: legal trouble, financial exposure, operational disruption and serious questions from customers, auditors, and the press.

Key Dates to Know

April 2025: Start your due diligence checks. 12,000 security companies across the UK received letters from the HMRC.

2 August 2025: HMRC, the Department for Work and Pensions (DWP), and the Security Industry Authority (SIA) will begin joint investigations and site visits, with a focus on hospitality venues and their security providers.

September 2025: Criminal prosecutions start. Businesses could face unpaid tax bills, financial penalties and interest up to 20 years of unpaid tax.

Red Flags to Watch For

Wondering if your provider’s legit? These are the warning signs:

Unrealistically low charge rates – often a clue that taxes are being dodged or staff aren’t being paid fairly
Heavy use of subcontractors – the longer the chain, the more diluted the accountability
No ACS accreditation – without SIA oversight, there’s no guarantee of ethical practices or governance
Lack of transparency – if you’re not seeing PAYE, pensions, or tax records, you’re in the dark

Professional Security Is the Safer Choice

When you work with us, you’re choosing a completely compliant, PAYE-based, transparent security provider. No loopholes. No grey areas. No outsourcing. Just clarity, confidence, and full protection.

We sit proudly in the top 1% of ACS-accredited security providers in the UK and we don’t take that lightly. Every part of our operation is built around ethical employment, financial transparency, and zero tolerance for corner-cutting.

Discover Our Tick Tock Tax O’Clock Hub

To help our clients (and the industry) stay ahead, we’ve launched Tick Tock Tax O’Clock – a live, no-fluff campaign hub packed with:

Key dates and legal updates
Due diligence checklists
Explainers on PAYE, VAT and HMRC enforcement
Easy steps to protect your business and your reputation

Whether you’re a venue, event organiser, or security buyer, this resource is built to help you stay on the right side of the law.

Visit our Hub