Mini umbrella company fraud

08 August 2025

HM Revenue and Customs (HMRC) has won a multimillion pound tax fraud case against a group of umbrella companies.

The tribunal held that use of mini umbrella companies to gain addition Employment Allowances and use of the VAT flat rate scheme was unlawful and HMRC was correct to dereigster the businesses and directors involved. 

As a result HMRC has updated the Mini umbrella company fraud guidance. The guidance contents include:

1. What mini umbrella company fraud is
2. The impact of mini umbrella company fraud
3. Warning signs
4. What HMRC is doing about mini umbrella fraud
5. Checks you can carry out to protect your supply chain
6. Report potential fraud or tax evasion

HMRC has also produced a video explaining, what is mini umbrella company fraud?

If you have any concerns Contact HMRC.

• HMRC penalties
• Payroll fraud
• Umbrella Companies

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