Off-payroll working – working through an umbrella company guidance

30 April 2021

With off-payroll working rules coming into effect from 6 April 2021, many Personal Service Companies (PSCs) have sought the services of umbrella companies. HMRC has recognised that there is some confusion over how a contractor would be paid when using this service, therefore have produced additional guidance on this specific area.

The guidance aims to provide contractors who are working, or about to work, through an umbrella company with helpful information on what an umbrella company is and what it means for them. HMRC want to help contractors understand how they will be paid, what deductions may be made and what costs the umbrella company is responsible for paying. The guidance also links to further material on spotting tax avoidance and what to do if the contractor or the umbrella company are involved in a tax avoidance scheme or other non-compliant activity.

CIPP comment

We would welcome your feedback on how this guidance is being received and any ways in which it can be improved so that we can feedback to HMRC. Please email [email protected] with any feedback you may have.

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