HMRC guidance on working through umbrella companies Recently Published

Following a recent report from a Parliamentary group into umbrella companies, HMRC has published guidance explaining the role and function of umbrellas.

The Loan Charge All Party Parliamentary Group called on the Government to clean up what it described as the 'Wild West' supply chain that exploits freelance and contract workers and encourages tax avoidance schemes.

Agency representative body, APSCo, responded by coming to the defence of compliant companies while recognising that unregulated umbrella companies are an issue.

Now HMRC has stepped in by publishing guidance for agency workers or contractors to explain who pays, how payment is made and what is paid when working through an umbrella company.

For more information, see the HMRC guide: Working through an Umbrella Company.