Offshore umbrella crackdown welcomed by giant group
In its revised proposals HMRC suggests that responsibility for correct PAYE National Insurance and tax payments of workers employed offshore will fall to the recruiter, employment agency or vendor, rather than the end user.
Matthew Brown, Managing Director of giant group commented on the latest announcement, “We welcome the outcome as it will help to eradicate any offshore loopholes (legal or otherwise). It will also ensure that thousands of workers will receive a number of benefits including statutory payments due to the correct amounts of tax and national insurance being paid.”
Brown continued, “However, given that the obligations to ensure the correct amount of income tax and national insurance is now paid falls immediately and wholly on the recruitment agency, we accept that this will unfortunately be an increased burden for agencies. They will need to ensure they use UK based professional umbrella employers. The FSCA code of conduct that all FCSA members adhere to ensures all members have no offshore element to their employment services.”