HMRCs crackdown on offshore umbrellas welcomed by giant group
HMRC’s crackdown on offshore umbrellas welcomed by giant group
The latest consultation by HMRC announced last week is a step towards fairer employment opportunities, according to professional umbrella employment provider, giant group.
HMRC announced that there are currently thousands of teachers, nurses and other workers employed via offshore arrangements which are not compliant with tax and national insurance legislation. The proposals outlined in the consultation document will require offshore intermediaries to correctly account for their income tax and national insurance payments. HMRC is also proposing greater monitoring by recruitment agencies and end hirers where the agency worker is employed via an offshore intermediary in order to track any inconsistencies. Any shortfall in tax and national insurance contributions by the offshore intermediary may become the responsibility of the recruitment agency and the end hirer if the offshore intermediary defaults.
Matthew Brown, Managing Director of giant group commented on this news: “As a founding member of the Freelance & Contractor Services Association (FCSA), giant welcomes any initiatives to make contract work and employment fairer in the UK. The proposed changes will ensure all workers who are eligible, will receive a number of benefits including statutory payments due to the correct amount of tax and national insurance being paid.”