HMRC ‘Tax avoidance – don’t get caught out’ campaign

HMRC has refreshed its campaign to help contractors, who are self-employed or engaged through an agency or umbrella company, understand their pay arrangements. The intention being that individuals understand if they could be at risk, so they don’t get an unexpected tax bill. HMRC has asked that we share access to these resources with our readers.

HMRCs focus is on making sure that individuals understand whether appropriate levels of tax and national insurance are being accounted for, whilst also reminding them that income tax and employee national insurance contributions are their responsibility as well as employers. HMRC’s refreshed campaign includes several resources and, whilst the resources apply to all arrangements, there is a clear focus on umbrella arrangements. The tools HMRC have made available include

HMRC is also publicising the following information

These resources are all geared at informing individuals, in the hope that they will shy away from arrangements which place them at risk of an underpayment of tax and national insurance. This may be a difficult balance to achieve, as perpetrators of tax avoidance arrangements will, no doubt, counter this with assurance of compliance.

The resources do not focus on recruitment companies, supply chains, or the risks of working with non-compliant providers, but may be useful tools to support your own risk analysis or help justify why you do not wish to work with particular models or providers. Compliant umbrella providers may also be able to use the tools as reassurance for nervous or new contractors.


About the author

Theresa Mimnagh is Associate Director at the recruitment and employment law specialists LawspeedLawspeed group corporate clients benefit from immediate up to date advice on staff engagement and related regulation; employment status; client, IR35, PAYE and umbrella contract templates; contract review/negotiation; self-employment and CIS contract templates; trade membership and government representation; accreditation services and a state of the art digital contract management platform.