HMRC recently published additional guidance relevant to agencies/businesses placing/using temporary workers which is designed to assist them in reducing the risk of engaging a “non-compliant” umbrella company.

The guidance also outlines seven steps that a business can take to avoid being involved with non-compliant umbrella companies which includes performing due diligence on supply chains and adding clauses to contracts and sets out how an organisation could inadvertently become involved with tax avoidance and the consequences of doing so.