UK Hospitality Leaders Face Urgent Wake-Up Call on Security Compliance

New Enforcement Threatens Nightlife and Hotel Operators with Fines, Audits, and Public Exposure

From August 2025, hospitality venues that outsource their security services will face sweeping enforcement of tax and employment laws—putting hotel chains, restaurants, members’ clubs, and nightlife operators directly in the crosshairs of HMRC and its enforcement partners.
At the heart of the crackdown is a mandate that all security operatives must now be employed via PAYE. Self-employment models, umbrella companies, and cash-in-hand practices—once widespread across the security industry—are now being actively targeted in a bid to recover an estimated £1 billion in lost tax revenue each year.

Who’s at Risk?

Businesses using non-compliant security contractors may face:

• Direct liability under the Agencies Act
• Public exposure via HMRC and the Low Pay Commission
• Invalidated insurance where security isn’t explicitly covered
• Operational disruption as non-compliant providers are audited or collapse

A coalition of agencies—including the Home Office, DWP, SIA, and National Police Chiefs’ Council—has begun sharing data and coordinating inspections. Many venues have already received early-warning letters urging them to assess and document their supply chains.

Time is Running Out

Hospitality Sector on Alert

The reforms follow damning findings from the Manchester Arena Inquiry and increasing pressure on the government to curb benefit fraud, worker exploitation, and tax avoidance in private security.
Senior leaders are now urged to:

This Is More Than Compliance

While costs may rise—expect £22–£23/hour minimum for compliant security—industry leaders say this represents an opportunity to raise standards, protect brands, and drive out bad actors.
“Reputation is everything in hospitality,” said one CEO. “You can’t welcome VIP guests or families into your venue while turning a blind eye to how your security team is employed.”

If your security supplier can’t demonstrate PAYE compliance, or if your contract is priced suspiciously low, your business could face penalties—not just them.

Hospitality leaders must act now—or risk being left behind when the enforcement wave hits.