The next step

HMRC’s Spotlight 60

[Weblink]

Contractors warned of avoidance schemes

Tax avoidance. Every so often HMRC publishes information notices, known as “Spotlights”. These focus on specific tax avoidance arrangements which HMRC says break the rules. Spotlight 60, published at the end of August 2022, is aimed at you if you work through an umbrella company. That’s an organisation which superficially employs and offers the services of contractors and agency workers to their customers (see The next step ).

Trouble with umbrellas. While many umbrella companies operate within the rules, a significant minority offer tax and NI-saving arrangements to entice contractors and agency workers onto their books. If that’s you, we recommend you read Spotlight 60 which includes information about how to identify schemes that could land you in hot water with HMRC.

For links to HMRC’s Spotlight 60, visit https://www.tips-and-advice.co.uk , year 22 issue 22.