HMRC has warned of new fraudulent models emerging in the market, claiming to reduce employment costs through ‘tax credits’ offset through acquired third-party businesses. Disguised as payroll providers, intermediaries, umbrella solutions, or back-office providers, they assert to use tax credits to offset employment taxes such as PAYE and National Insurance by operating the payroll thereby, reducing the amount required to be paid. 

To read what HMRC have to say: https://www.gov.uk/government/publications/hmrc-issue-briefing-tax-fraud-warning-for-employment-agencies-and-employers

We agree with HMRC’s recommendation that to avoid risk and exposure to a tax avoidance claim under the proposed new umbrella liability rules, you should always seek independent professional advice.

Contact us, for a free complimentary discussion, or to learn more and/or put your questions directly to HMRC representatives, attend our upcoming seminar:

https://www.lawspeed.com/lawspeed-seminar-preparing-recruitment-agencies-for-2026/

🗓 14th January 2026
📍 BMA House, London