The June 2025 Employer Bulletin has outlined and shared resources for umbrella employer organisation, their users and associated employees.
The HMRC published and named tax avoidance schemes list contains a sizeable number of umbrella organisations who have been found to be promoting and operating tax avoidance schemes which don’t work.
New guidance and tools for umbrella companies
HMRC has published guidance specifically written for umbrella companies operating in the temporary labour market. This important development aims to set clear expectations and raise standards across the sector.
New umbrella company guidance
The guidance outlines examples of good practice for umbrella companies in the temporary labour market which:
- aims to improve how the market functions
- sets out actions supporting compliance
- encourages a level playing field across the temporary labour market
This guidance serves as a step towards raising standards while the government plans formal regulatory umbrella companies oversight. It helps create a fairer market and enables workers, businesses, and supply chain stakeholders to understand what responsible umbrella company operation looks like.
- Umbrella companies should be run by fit and proper people
- Umbrella companies should be financially viable
- Umbrella companies must follow the statutory requirements that apply to all employers
- Umbrella companies must accurately operate the payroll for their employees
- Umbrella companies should compete based on lawful practices
- Umbrella companies should be clear, open and honest in the information they provide their employees
- Umbrella companies should provide employee care
- Umbrella companies should provide recruitment agencies with the information they need to meet their legal obligations
Updated work out pay from an umbrella company tool
Employment businesses who use umbrella companies and their workers can now access HMRC’s updated work out pay from an umbrella company tool.
This tool:
- generates comprehensive pay and deduction illustrations calculations based on assignment rates
- helps verify if pay and deductions are legitimate and accurately calculated
- incorporates the 2025 to 2026 financial year rates and thresholds
- is completely anonymous with no collection of identifying details
This resource supports employment businesses in meeting compliance obligations while ensuring workers are better informed about their pay entitlements and are protected from tax avoidance schemes.
PAYadvice.UK 19/6/2025