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13 October 2015
HMRC should not chase workers on payments involving umbrella companies or intermediaries, according to LITRG.
HMRC should not pursue individual workers for underpayments arising from their involvement in arrangements between engagers of their labour and intermediaries such as umbrella companies says The Low Incomes Tax Reform Group (LITRG).
Referring to HMRC’s consultation on restricting tax relief for travel and subsistence for workers employed through employment intermediaries the LITRG explained that a worker may receive part of his pay from the intermediary on the basis that it is reimbursement for tax-relieved travel and subsistence expenses.
Under the proposal income tax and National Insurance would be payable on the “expenses” payments.
Anthony Thomas LITRG chairman said: “It is our experience that claims for such relief are prone to abuse. HMRC investigate the claims and establish that the payments for travel and subsistence are not...
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