The government has decided to use its purchasing power to stop tax avoidance by major contractors. From 1 April 2013 bidders for government contracts will need to certify that they are tax compliant. Failure to satisfy the new measure will bar the company from winning the contract.

At Budget 2013, HMRC published its response to the consultation and confirmed that the new regime would start on 1 April 2013. It has also helpfully clarified and narrowed the new guidance.