Working with the Treasury and the Department for Business and Trade, HMRC has published new guidance for employment businesses that use umbrella companies to employ workers.
This guidance is intended to help employment businesses understand their legal responsibilities, protect their business from bad actors in their supply chain and support umbrella company workers.
HMRC has also published updated guidance for umbrella company workers. This includes advice on how workers can protect themselves from the actions of fraudulent umbrella companies.
These guidance updates follow a recent government consultation on potential approaches to bringing umbrella companies within the scope of government regulation and options to tackle tax non-compliance in the sector. The government is considering the responses it has received and will publish a response in due course.