Recruitment Firms Linked to Tax Avoidance

This is a Britain news story, published by Sky News, that relates primarily to National Insurance news.

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tax avoidance

Sky News

•

World

Major UK recruiters linked to tax avoidance schemes after workers hit with crippling HMRC demands

Summary

Nutrition label

73% Informative

Some of Britain 's biggest recruitment companies linked to tax avoidance when placing workers into jobs.

Many of these workers were paid by umbrella companies that promised to take care of taxes but were operating tax avoidance schemes.

They worked by paying workers what were technically loans, instead of a salary.

This allowed them to circumvent paying income tax and National Insurance .

Many umbrellas paid PAYE to the exchequer, but schemes were pocketing deductions instead.

Tax avoidance is legal but HMRC has successfully challenged schemes in the courts.

Treasury will today unveil a package of reforms it will consult on as part of a crackdown on tax avoidance schemes.

Many recruiters were not aware umbrella companies they were working with were tax-avoiding schemes.

Government report concluded there could be " 70 to 80 non-compliant umbrella companies involved in the operation of disguised remuneration avoidance schemes".

VR Score

Informative language

Neutral language

Article tone

informal

Language

English

Language complexity

Offensive language

possibly offensive

Hate speech

not hateful