This legality is a point of contention with Umbrella Reclaim, as Robert continued by detailing large companies started to prepare for the changes in April 2020, forcing contractors out of their PSC's and into umbrella companies.
Only HMRC could make such a complicated mess of rules governing a simple situation where a company wants to hire a freelance expert to work on a project of finite duration. It will not raise penny in additional tax, because behaviour will change.
Yet despite repeated attempts to warn HMRCgovuk of unscrupulous Umbrella companies that are inevitably going to create more loancharge victims they and Jesse_Norman have ignored such warnings and failed to close such operations down 🤷♂️
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IR35: HMRC updates rules on working through an umbrella company - 'this is a good start'IR35 changes were introduced in early April, which affected self-employed workers and contractors across the board. As employment tax rules were upended, some experts believed umbrella company usage would rise and on this, HMRC has issued updated guidance on working through these operations.
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