HMRC has announced a review of legislation targeting employees avoiding Pay As You Earn (PAYE) and National Insurance (NI) contributions through the use of offshore Umbrella companies.
HMRC will have the power to collect full PAYE tax and NI contributions for UK workers regardless of where their payroll is being processed. This will focus a crackdown on tax avoidance.
HMRC may look to recover retrospective tax debt from multiple sources including the offshore providers, recruitment agencies / end clients and the contractors. Potentially, HMRC will have the ability to go back 7 years on unpaid debt.
Worryingly contractors paid by offshore Umbrella companies may not be aware of the implications of not paying NI contributions. Contractors’ eligibility to Statutory Sick Pay, Statutory Maternity Pay and Pension entitlement may potentially be affected. Contractors who have used Offshore Umbrella Companies may personally become liable for unpaid contributions.
At Exchequer we have always taken a strict line when it comes to compliance and follow HMRC guidelines religiously.
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Every Employee receives at least Minimum Wage.
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Any expenses claimed on our Umbrella PAYE modelmust be supported by valid receipts.
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Proof of ID and RTW is obtained for allemployees.
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We actively monitor AWR and liaise with ourAgency clients to ensure compliance.
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We are an approved TEAM supplier.
If compliance is important to you, then speak to Exchequer and discuss how we can help you. Call Emma, our Customer Service Manager, now on 01244 500195.
