HMRC's 'Don't get caught out' campaign encourages contractors working through umbrella companies to take a closer look at their circumstances and watch out for tax avoidance.
Contractors can use HMRC's online guidance and tools to learn about tax avoidance, to understand how they are paid and how to check if the right amount of tax is being paid to avoid an unexpected tax bill later.
There are real-life stories of people caught out by tax avoidance in a short explainer YouTube video on how umbrella companies work.
Contractors can also review HMRC's list of published named tax avoidance schemes and their promoters here at the Rossmartin tax site. This is not an exhaustive list, as some operators are yet to be identified by HMRC.
HMRC never approve such schemes, even if promoters say otherwise or promote them by saying they have been found compliant by barristers.
If you have concerns that you may have been caught out, please get in touch with your client manager.
