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CIS subcontractors and Umbrella Companies

CIS subcontractors and Umbrella Companies

I currently do the books for a building company who has a number of subcontractors and they run through the CIS scheme. At present this is all running smoothly, but a couple of the subcontractors are doing more and more hours on a regular basis, so they are starting to head more towards the employee status. My client has been contacted by an Umbrella company who says they will take all responsibility for all contractors and there will be no HMRC liability for him to worry about. 

I have never dealt with umbrella companies before and there is a lot of conflicting information online. I would like to get your opinions and also wonder how the umbrella company can use the relevant subcontractors but still stay on a subcontractor basis if my client of a Ltd company would have to employ them.

Many thanks for your help in advance :)


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