HMRC Contractor Loan Scheme Warning
If an umbrella company scheme looks too good to be true, it probably is.
Beware, if you’re working through an umbrella company that utilises a contractor loan scheme, the HMRC may be looking at you.
Following the ASA ruling this year that determined an umbrella company that was offering this type of scheme misled by omission, HMRC has advised withdrawal from any such schemes if you want to avoid investigation and penalty charges.
It advised that all users of any such loan schemes will be subject to an HMRC enquiry, and could potentially be charged penalties on top of tax owed.
Click here to read more about the ASA ruling and for advice from the HMRC on what to do if you think you may be part of a similar scheme.