LCCI is proud to promote HMRC’s recent campaign ‘Tax avoidance: don’t get caught out’. It advises taxpayers how to spot avoidance schemes, explains the risks involved and how to report a suspicious scheme to HMRC. The campaign is intended to help contractors who work through an agency or umbrella company to understand their pay arrangements, so they don’t get an unexpected tax bill. We encourage you to use the risk checker which allows you to check whether your current contract could involve tax avoidance.

HMRC has published a list of named promoters involved in promoting tax avoidance which we encourage members to check.

There are different types of tax avoidance schemes, examples of which can be seen in the published Spotlights series on GOV.UK . The most relevant Spotlight is Spotlight 60 - published in August 2022 that specifically warns about non-compliant umbrella companies and what to look out for. We encourage all LCCI members to read this section to ensure they are compliant.

For organisations employing contractors/agency workers, it is important to carry out the appropriate due diligence checks across your supply chains. It means you can reduce your and your clients’ risk of using non-compliant umbrella companies.

Due diligence checks can support you in making a judgement on the integrity of the labour supply chain and the transactions within it.