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Tick Tock Tax O’Clock: The Bridgegate Edition

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HMRC’s Still Watching. 

And the security industry’s still under the spotlight. 

What started as warnings in 2025 has now turned into active HMRC investigations across the private security sector. 

The latest focus? 

Supply-chain fraud. 

HMRC says some security companies are: 

  • Deducting tax and NI from workers 
  • Never paying it to HMRC 
  • Hiding behind subcontractors 
  • Using fake payroll setups 
  • Cutting corners on compliance 

And if you’re using a dodgy supplier? Your business could end up caught in the mess too. 

So… What Is Supply-Chain Fraud? 

In simple terms: Some security companies are making it look like workers are employed properly when they’re not. 

Staff think: 

  • Tax is being paid 
  • NI is being paid 
  • Everything’s legit 

But behind the scenes, sometimes that money never reaches HMRC. 

That leaves: 

  • workers exposed 
  • venues at risk 
  • clients facing major compliance issues 

Here’s Where It Gets Risky

Legal & Financial Risk

If your security provider isn’t paying tax or National Insurance correctly, your business could end up exposed too. Misclassified workers, fake payroll setups, and non-compliant labour models can all lead to investigations, penalties, and serious financial consequences. 

Reputational Damage

Who you work with matters. If your business becomes linked to non-compliant security providers, it can damage trust with clients, customers, and stakeholders. Bad press spreads quickly – especially across hospitality, nightlife, and events. 

Operational Disruptions

Non-compliant providers create instability. HMRC investigations, labour issues, or enforcement action can disrupt staffing, affect service delivery, and leave venues scrambling to cover operations at the worst possible time. 

Are you putting yourself at risk of a hefty fine and criminal prosecution?

Why This Matters For Venues & Hospitality Operators 

Cheap security can become very expensive. 

If your provider’s cutting corners on payroll or compliance, you could face: 

  • Reputational damage 
  • HMRC scrutiny 
  • Operational disruption 
  • Legal headaches 
  • Serious financial risk 

The days of “we didn’t know” are disappearing fast. 

The Industry’s Changing 

HMRC’s latest guidance makes one thing clear: 

  • Security companies are expected to: 
  • Use proper PAYE models 
  • Pay tax and NI correctly 
  • Maintain transparent payroll processes 
  • Carry out due diligence 
  • Clean up labour supply chains 

The industry’s moving toward accountability and rightly so. 

Our Take 

At Bridgegate, we believe security should be done properly with fair treatment for staff, transparent payroll processes, and no cutting corners on compliance. Venues and operators deserve confidence in who they’re hiring, especially in an industry facing increasing HMRC scrutiny around labour supply chains and payroll practices.  

Don’t Wait Until HMRC Comes Knocking 

If you’re unsure about your current security setup, now’s the time to review it. Because once the investigation starts, it’s already too late. 

Want to speak to the team? 

Get in touch with Bridgegate today.