HMRC homing in on Umbrella expenses

[cojak]

This got missed in October but now that I've found it I thought it best to post it here.

'Abusive tax avoidance' affects temporary workers

This is probably why Umbrella have changed their expenses policies as Lisa mentioned in the sticky above.

I expect to be KUATB'ed

[LisaContractorUmbrella]

Don't think I can KUATB you actually Cojak - The article is talking about salary sacrifice arrangements which no reputable umbrella company should ever have been involved in. Basically the employee 'sacrifices' or, more accurately has 'sacrificed' on their behalf a proportion of the earnings which is then processed as 'expenses' regardless of whether or not any cost has been incurred and without knowing whether it met the wholly and exclusively rule. Unfortunately this sort of scheme was very popular because it was targeted at very low paid workers who ended up paying virtually no tax or even no tax at all - obviously all then went a bit pear shaped for them when it came to the attention of Hector.