Court Decides Umbrella Contract Is Not Employment
An Upper Tribunal has concluded that an umbrella’s overarching contract was not employment, meaning that they are potentially liable for a multi-million tax bill for incorrect treatment of travel and subsistence expenses. Background Employees can claim tax deductible travel and subsistence expenses incurred through being required to attend temporary workplaces for their employer. Umbrella companies […]
Umbrella Named On HMRC’s List Loses Challenge
An umbrella that was named on HMRC’s published list of tax avoidance schemes and promoters has lost their bid for a judicial review to challenge their inclusion on the ‘name and shame’ list. Brief summary of the case Easyway Umbrella Limited argue against their inclusion in HMRC’s list (section 86 notice) stating the following grounds […]
It’s Official – Rolled Up Holiday Pay Is Lawful
Whilst most of us have been taking a break from work and enjoying some downtime, a very positive development for temps and umbrella workers has quietly come into effect. Regular readers will be aware that some umbrella companies and recruitment agencies wrongly withhold holiday pay from their workers in a practice which can be legal, […]
HMRC’s Latest Umbrella Guidance – Helpful Or Nothing New?
HMRC recently issued guidance for recruitment businesses using umbrella companies, which on the surface seems a positive step forward, but what does it actually mean for umbrella workers? Nothing has actually changed The first point to make is that nothing has actually changed – no new rules or regulations have been brought in. Instead, it seems to be […]
HMRC Names Latest Tax Avoidance Schemes – December 2023
HMRC has published an update to their list of named tax avoidance schemes and promoters, with the following additions: Griffith Anderson Limited Purple Pay Limited (added on 7 December) Rainbowpay Ltd They have also updated the information they list for Bluemoore Associates Ltd. HMRC’s list keeps on growing, in a never-ending cycle. And it will never end […]
Our Opinion On Latest Umbrella Exposé
There has been another exposé of alleged poor practices taking place at an umbrella which has been accredited by an industry body. Our founder, Julia Kermode, has considerable experience in umbrella compliance, and as such was being repeatedly asked for her view on the situation. She therefore recorded the below short video:
New Umbrella Accreditation Launches – FORTIFY!
In response to industry demand, specialist payroll auditor launches exciting new PayePass Fortify Umbrella Accreditation. In the continued absence of government action to regulate the sector, there has been a proliferation of tax avoidance schemes in the umbrella industry. Alongside this non-compliant activity, other unethical behaviours – including skimming and the withholding of holiday pay – are […]
Contractors Launch Group Legal Action Against Umbrellas
Our friends over at Contractor Voice are launching group legal action against umbrella companies suspected of wrongdoing in relation to paying contractors their earnings. The campaign group has a history of exposing dubious practices within the umbrella sector, including withholding holiday pay and skimming – both of which can be done legally and therefore are […]
Government Not Committed To Tackling Worker Exploitation
The government has just published the Labour Market Enforcement Strategy for 2023/24. This is an important document which ultimately aims to stamp out exploitation of workers. It looks at the big picture of risks and non-compliance. Frustration with the government Margaret Beels is the director of labour market enforcement, and wrote the report. In it, […]