Latest News & Guides
Umbrella Company Fail at Employment Tribunal Opens Door for Change
Contracts paid on condition that an umbrella company is used for payment has become an occupational hazard for IT contractors, but the concerns about inexplicable deductions and unfathomable payslips, may soon be coming to an end due to an unexpected yet well- established legal rule and failures in the format of the Key Information Document (KID).
Employment Tribunal Identifies a Surprise Umbrella Company Flaw
So what changed? I’m going to hazard a guess that the employment tribunal judges have finally had enough of umbrella companies that in reality are employers for tax purposes only, which for years have manipulated employment law to facilitate the provision of a payroll service.
HMRC list of Umbrella Companies involved in Tax avoidance
To raise awareness and to protect the interests of temporary workers, HMRC has prepared a list of umbrella companies that they have found to be involved in running tax avoidance schemes.