One of the most frequently asked questions by contractors who are new to umbrella companies is about take home pay retention. The following article will provide you with a detailed explanation of the deductions you can expect to see to your pay when you register with an umbrella company.
Choosing an umbrella company can often seem daunting. There’s a lot of information online and hundreds of umbrella companies to choose from. Given that all compliant umbrella companies will pay you roughly the same (give or take a few pounds depending on their margin), how do you choose between them?
Mini umbrella company’s (MUC) are the latest type of tax avoidance schemes to target the temporary labour market. MUC’s, like other avoidance schemes, reduce the amount of tax you pay to HMRC and can pose a severe financial risk to anyone engaging with them.
On the 26th November, HMRC published a report entitled: Use of marketed tax avoidance schemes in the UK. The report discusses how the UK has seen a significant shift in the way promoters of tax avoidance schemes are targeting individuals, and the steps the government are taking to tackle tax avoidance.
