As part of the July 2024 Employer Bulletin, HMRC are highlighting their spotlight 64 information on rogue umbrella organisations and the difficulties agencies and their workers may get into.
HMRC is aware that some umbrella companies who are using employment and recruitment agencies to promote tax avoidance.
Warning for employment agencies using umbrella companies (Spotlight 64) highlights signs that employment and recruitment agencies should look out for which may indicate an umbrella company is operating a tax avoidance scheme.
As a business they need to be aware of the potential dangers of umbrella companies that operate tax avoidance schemes.
Spotlight 64 details potential risks for businesses using non-compliant umbrella companies, these include potential penalties and reputational damage.
Spotlight 64 also outlines steps businesses can take to protect themselves and their workers.
Further information on how to reduce your risk of using an umbrella company who operates a tax avoidance scheme is available.
If you suspect an umbrella company is not complying with the tax rules, you can report it to HMRC.
PAYadvice.UK 15/7/2024