Umbrella Companies under scrutiny

Umbrella Companies under scrutiny

During The Chancellors Autumn Budget speech yesterday, the subject of Non-Compliant Umbrella Companies was broached as part of his Tax Avoidance section.

Mr Osborne said the Government “are also consulting on other measures including the use of so called ‘umbrella companies’ to deprive people of basic employment rights like the minimum wage and avoid tax.”


These Pay-By-Pay-Day schemes the Chancellor is referring to have tarnished elements of our Industry for several years now, enabling Agency Worker suppliers to invoice lower rates to the end user whilst they offset the candidates “expenses” to increase their timesheet value by tax avoidance.

From day one, HEADS have believed such schemes to be unethical and even illegal in some cases. Our in-house payroll team process over 3000 timesheets on a weekly basis; accurate and on time, and do not operate any Travel & Subsistence schemes for Agency Workers.

Should you require any further information or have any questions regarding our views on Umbrella companies, please feel free to contact our Compliance team on 0161 746 8811.


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