Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Umbrella companies are only part of the IR35 problem

136946
Only part of the problem

Key points

  • Changes are expected to curtail the non-compliance in the umbrella company market.
  • These measures may not stop other problems that arise with off-payroll working.
  • Some of the tools used to determine a worker’s status do not take account of recent court decisions.
  • Many people and advisers still do not understand how the IR35 legislation operates.

The government consultation issued on 6 June 2023 entitled ‘Tackling non-compliance in the umbrella company market’ is now closed and I suspect we will see some tax changes in this area announced in the autumn statement to be made in November 2023.

It is expected the tax changes to be announced will be aimed at curtailing the abuse by some umbrella companies by the placing of more responsibilities on agencies that generally supply workers to umbrella companies. Those powers are rumoured to include the requirement for the agency who placed the specific...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

FIVE WAYS TO MAKE ACCOUNTS PRODUCTION AND TAX EASIER.
Download the exclusive Xero
free report here.

New queries
Please email any questions you might have
to: taxation@lexisnexis.co.uk.

back to top icon