HMRC has recently advised businesses to check their supply chains and highlighed the tax risks associated with umbrella companies. The use of umbrella companies has increased following the introduction of the IR35 off-payroll reforms (in the public sector in April 2017 and in the private sector in April 2021), as many end clients ceased to engage directly with contractors who were operating via a personal service company. In addition to the IR35 rules, other tax issues to consider include the managed service company legislation, changes to the employment intermediary regulations, and changes for travel and subsistence expenses for employment intermediary workers who are subject to supervision, direction or control.
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HMRC has recently advised businesses to check their supply chains and highlighed the tax risks associated with umbrella companies. The use of umbrella companies has increased following the introduction of the IR35 off-payroll reforms (in the public sector in April 2017 and in the private sector in April 2021), as many end clients ceased to engage directly with contractors who were operating via a personal service company. In addition to the IR35 rules, other tax issues to consider include the managed service company legislation, changes to the employment intermediary regulations, and changes for travel and subsistence expenses for employment intermediary workers who are subject to supervision, direction or control.
If you are not a subscriber, subscribe now to read this content.
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