On 10 May, The Recruiter reported that a new report from the BBC has again put the spotlight on schemes that create sham ‘mini umbrella companies’ that UK temporary workers are employed through, costing the UK “hundreds of millions of pounds” in lost taxes. It is claimed that more than 48,000 of these companies have been created in the past 5 years, involving the recruitment of more than 40,000 people from the Philippines to front the companies as ‘directors’. Recruitment agencies working on behalf of clients employ temporary workers through a series of mini umbrella companies and, because each has only a small number of workers, it can qualify for the NI relief..
https://www.recruiter.co.uk/news/2021/05/bbc-report-highlights-sham-mini-umbrella-companies
https://www.personneltoday.com/hr/thousands-of-mini-umbrella-companies-abusing-tax-system/
HMRC FACING CALLS TO DO MORE TO TACKLE MINI UMBRELLA FRAUD IN WAKE OF BBC INVESTIGATION
https://www.gov.uk/guidance/mini-umbrella-company-fraud
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