Taxman in new attack on umbrella companies

Contractors on employment contracts should be asking probing questions of their employer or payroll provider to precisely determine how much they are paid and what for, amid fresh assault on umbrella company payment methods.

Speaking last night, Bauer & Cottrell issued the advice in response to HMRC warning contractors, recruiters and end-clients that some umbrellas are unlawfully offering temporary workers PAYE and National Insurance ‘tax relief’ on every pay day.

According to HM Revenue & Customs, such “pay day by pay day” relief models, never before singled out by HMRC, fail to properly account for the correct income tax, or the correct employers’ and employees’ NI contributions.

Link to full article on Contractor UK

Link to HMRC