Umbrella Companies And HMRC

HM Revenue and Customs (HMRC) and Umbrella Companies

Many umbrella companies will advertise themselves as “HMRC approved”. This is false advertising as HMRC does not and never has officially approved or endorsed any umbrella company.

One of the roles of HMRC is to audit a company’s tax records. Umbrella companies must be fully compliant with all tax and National Insurance regulations in order to successfully pass their inspections.

What do HMRC check for when auditing an umbrella company?

HMRC will check the following:

What About IR35?

IR35 is the bane of contractors' lives and the thought of being investigated for IR35 abuses puts the fear of god into most people working in the contracting sector. IR35 was designed to catch people who had an employment relationship with a client but who were not paying the right amount of tax. Working for a PAYE umbrella company means you will absolutely not be affected by IR35 and it does not apply to you. Umbrella companies are safe, secure and HMRC friendly.

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Umbrella Companies And HMRC

HM Revenue and Customs (HMRC) and Umbrella Companies

Many umbrella companies will advertise themselves as “HMRC approved”. This is false advertising as HMRC does not and never has officially approved or endorsed any umbrella company.

One of the roles of HMRC is to audit a company’s tax records. Umbrella companies must be fully compliant with all tax and National Insurance regulations in order to successfully pass their inspections.

What do HMRC check for when auditing an umbrella company?

HMRC will check the following:

What About IR35?

IR35 is the bane of contractors' lives and the thought of being investigated for IR35 abuses puts the fear of god into most people working in the contracting sector. IR35 was designed to catch people who had an employment relationship with a client but who were not paying the right amount of tax. Working for a PAYE umbrella company means you will absolutely not be affected by IR35 and it does not apply to you. Umbrella companies are safe, secure and HMRC friendly.

Read More

The quickest way to get
the best take home pay

Stop losing your hard earned cash!

Fill in your details below and start saving now!

Your information is safe: Privacy Policy