HMRC has published new guidance Working through an umbrella company on payment arrangements for agency workers working through an umbrella company. The guidance notes that the umbrella company will pay the workers and deduct PAYE income tax and NICs, and that the employment agency which provides the workers to the client will pay the umbrella company (having deducted its fee). The guidance notes that if any amount paid to workers under their contracts of employment with the umbrella company is described as ‘non-taxable’, the company could be involved in tax avoidance.
HMRC has published new guidance Working through an umbrella company on payment arrangements for agency workers working through an umbrella company. The guidance notes that the umbrella company will pay the workers and deduct PAYE income tax and NICs, and that the employment agency which provides the workers to the client will pay the umbrella company (having deducted its fee). The guidance notes that if any amount paid to workers under their contracts of employment with the umbrella company is described as ‘non-taxable’, the company could be involved in tax avoidance.
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