Thousands of lorry drivers have reportedly been left with unpaid tax bills after using an unscrupulous accountancy firm according to a recent story by the BBC.
The story highlights some of the reasons why it is important to only work with reputable and professional umbrella or accountancy services and to ensure that you are being paid in a way that complies with HMRC legislation.
A large number of lorry drivers used the Lincoln based firm, it is thought that thousands may have been affected and some have been left with unpaid tax bills totalling in excess of £11,000.
The company worked with HGV driving recruitment agencies and reportedly paid agency staff commission for drivers they referred across to them. They encouraged drivers to set up limited companies promising to administer their tax affairs on their behalf. The accountancy firm operated under three different names and was allegedly run by two individuals who were not qualified accountants.
The drivers using their services were given the impression that all their tax, NI and any VAT or corporation tax had been paid to HMRC but many are now facing large bills and the accountancy firm, which is under investigation by HMRC, has ceased trading.
Those who fell victim to what could be described as a scam are now facing an extremely stressful time which could have been avoided if they had used a reputable company.
HMRC are urging anyone who can’t pay their tax debts to contact them but the story serves as a stark reminder that individuals are ultimately responsible for paying their own tax. Read the full story on the BBC here.
At Exchequer Solutions we work with recruitment agencies and contractors across a wide range of industries. We have a wealth of experience and over the years have built a strong reputation for our services. We can provide a fully compliant umbrella solution for contractors from a range of different industries and all our contractors can benefit from the peace of mind that their tax affairs are being dealt with efficiently and that there will be no unexpected bills from HMRC.
For those operating as a limited company our sister company Exchequer Accountancy can help. As a firm of chartered accountants they offer a professional service and the reassurance that your tax affairs will be dealt with by qualified accountants.
