HMRC wins disguised remuneration tax avoidance case

The Court of Appeal has found in favour of HMRC that Mr Hoey was liable to pay the tax in his income in ‘Stephen Hoey and others v HMRC’ (13th May 2022). HMRC welcomed the Court of Appeal decision, which confirms that this kind of tax avoidance scheme does not work. Tax avoidance deprives the … Continue reading HMRC wins disguised remuneration tax avoidance case

New National Minimum Wage rates commence

For pay periods commencing from the 1st April 2022, the new National Minimum Wage and National Living Wage rates come into force. Employers who fail to ensure that their staff are paid at least minimum wage for all work-time will be in breach of National Minimum Wage law and are committing criminal activity. those found … Continue reading New National Minimum Wage rates commence

HMRC to name tax avoidance promoters

Naming tax avoidance promoters As part of the approach to support taxpayers to steer clear, or move out, of tax avoidance HMRC plans to publish details of those involved in the supply of mass-marketed tax avoidance schemes and details of the schemes they are selling. This will enable taxpayers to spot avoidance schemes more easily … Continue reading HMRC to name tax avoidance promoters

Call for Evidence: umbrella company market

The government has published a call for evidence on the umbrella company market. Umbrellas - what are they? Umbrella companies play a role in the labour market by facilitating the engagement of temporary workers. Umbrella companies employ individuals on behalf of clients and employment businesses. They do not source work for the employee, which is … Continue reading Call for Evidence: umbrella company market

Using unfunded pension arrangements

In the agent update 87, the HMRC remind agents about an arrangement where a company creates an unfunded pension obligation to pay a director of the company a pension. The company may then transfer their obligation to pay the director a pension to a relative or another individual closely associated with the director. The arrangements … Continue reading Using unfunded pension arrangements

TUC urges ban on umbrella companies – end exploitation of workers amid scandalous workplace practices which have “no place in modern Britain”

Union body warns use of umbrella companies could spiral post-pandemic New TUC research estimates that half of agency workers work for umbrella companies The TUC has called for umbrella companies to be banned. The union body says the scandalous workplace practices associated with umbrella companies have “no place in modern Britain”. An umbrella company is … Continue reading TUC urges ban on umbrella companies – end exploitation of workers amid scandalous workplace practices which have “no place in modern Britain”

HMRC June 2021 Employer Bulletin

HMRC have issued the June 2021 Employer Bulletin, again, packed full with information. In this month’s edition of the Employer Bulletin there are updates and information on the following: Coronavirus (COVID-19) updates and information Coronavirus: how HMRC will continue to support customers and the economyClaim working from home tax reliefContinued support for businesses: Statutory Sick … Continue reading HMRC June 2021 Employer Bulletin

Statutory Payments from the deemed employees intermediaries

HM Revenue and Customs (HMRC) have published new guidance on Monday 24th May 2021 which explains how intermediaries can calculate statutory payments for their workers where the off-payroll working rules (IR35) apply. Some payroll software and service solutions may have incorporated automated calculations to facilitate automated statutory payment calculations whereas others may require manual adjustments. … Continue reading Statutory Payments from the deemed employees intermediaries

Supply chain due diligence to assure labour supply chains

HMRC have issued guidance (13th May 2021) to both and help warn business to be aware of risks within Labour supply chains. Why assure the labour supply chain Failing to take reasonable action to make sure that the supply of labour is legitimate can lead to significant legal, financial and reputational risks, liability for unpaid … Continue reading Supply chain due diligence to assure labour supply chains

Mini Umbrella Company (MUC) fraud

HMRC have issued information on fraud being committed by a number of Mini Umbrella Companies. HMRC claim that every business which either places or uses temporary labour should be aware of the potential dangers posed to by mini umbrella company fraud. Not only can a fraudulent supply chain lead to reputational and financial damage to … Continue reading Mini Umbrella Company (MUC) fraud

HMRC publish guidance for those employed by umbrellas

HMRC have published further guidance (29th April 2021) to clarify the position on agency and contractors who are employees of umbrella organisations. Working through an umbrella company Those employed by umbrellas can find out about how and what they will be paid if they are an agency worker or contractor and work through an umbrella … Continue reading HMRC publish guidance for those employed by umbrellas

‘Umbrella’ companies under the spotlight

The Low Incomes Tax Reform Group (LITRG) has published a research report looking at the use of ‘umbrella’ companies and other labour market intermediaries in the UK. The factual and technical report also considers the nature and scale of disguised remuneration schemes. It is intended to help increase public knowledge of how labour market intermediaries … Continue reading ‘Umbrella’ companies under the spotlight