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Mini umbrella company fraud

17 May 2021
Issue: 4792 / Categories: News

HMRC has published new guidance on mini umbrella company fraud.

It explains that, while there is no standard mini umbrella company fraud model, they usually involve the creation of multiple limited companies to enable fraud and only a small number of temporary workers are employed by each one. The structuring of the mini umbrella companies is facilitated by a promoter or outsourcing business which may have other linked businesses to support the operation.

The guidance explains the warning signs for businesses that use temporary labour and encourages them to:

  • carry out due diligence checks;
  • be clear who pays their workers and how they are paid; and
  • check the credibility of the supply chain.

Businesses can contact HMRC if they have concerns about a supplier, hirer of labour or associated activities and report potential fraud or tax evasion.


Issue: 4792 / Categories: News
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