Is HMRC's newest umbrella guide a life-saver or just old news?
Last week, HMRC released new guidelines for recruitment agencies using umbrella companies. It sounds like a step in the right direction, but what about the hardworking folks under those umbrellas? Let's find out!
Nothing's flipped on its head
Get ready for a drumroll, folks, because we've got some news! Well, not really. Brace yourselves for a "hype over substance" moment: despite the fanfare, there are no new rules or regulations to speak of. It's more of a PR stunt to distract us while we tap our feet impatiently waiting for the government to finally regulate this sector.
What's the verdict, you ask?
The HMRC's latest guide for recruitment businesses doesn't exactly break new ground. In fact, it looks like a copy-paste job from their 2021 version, with a few minor updates from 8 November 2023. But wait, there's a hidden gem in there that could make your day! Finally, there's a section that's all about you - the unsung hero who usually gets forgotten.
Back up your teammates!
Although most of the latest guidance is a bit of a snooze, I can't help but give a fist pump to the fact that there's finally a section dedicated to the real MVPs: you, the workers! You're the ones who get hit the hardest by decisions made higher up, yet you get the least amount of say in the matter. It's enough to make me want to scream into a pillow!
The tax folks at HMRC suggest these tips for agencies with umbrella-paid staff:
But, does it pass muster?
As sneaky tax avoidance schemes evolve and lure in recruiters and workers, the current guidance falls short. The advice is just too basic and universal to shield recruitment agencies from the clutches of a non-compliant umbrella company.
To see the latest tax avoidance scheme list visit the below page: