Umbrella pay services

Umbrella pay services

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A freelance contractor is thinking of  putting their services through an Umbrella Company to avoid any confusion with being confused with PAYE.  The freelancer will send their timesheet/fees info to the umbrella company and they will invoice the clients.  The umbrella company will then pay the freelancer and part of the payment will be allocated as a loan.  Is anyone familiar with this practice and does HMRC accept it?

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By Steve McQueen
25th Sep 2014 09:17

Yes, very familiar.

Does HMRC accept it is a very big question. 

If you go this route you will get nasty HMRC letters. You will get enquires. You will get hasstle and grief.

Can HMRC do anything about it?

Well, so far with a number of these schemes, no, they haven't been able to enforce anything, just scare people.

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