How to recognise the signs of tax avoidance: a guide for Locums from UK GOV
At Hunter Gatherer Mental Health, we understand that using an umbrella company as a payroll provider is often the easiest way for Locums. That way, they can take care of all the important paperwork and leave the Locum to focus on what they do best.
To support our community of Locums, we’re taking a look at the key takeaways from HMRC’s ‘Tax avoidance – don’t get caught out’ campaign. Read on to learn more.
Launched in November 2020, the campaign is aimed at those working through umbrella companies. It sets out to help Locums understand how they are being paid and to ensure they are not involved in tax avoidance.
Here at Hunter Gatherer, we want to support our network of Locums by helping them to recognise the signs of tax avoidance and further understand how umbrella companies work. We encourage them to check their pay and contract arrangements and to reach out for help if they think they are involved in a tax avoidance scheme.
In the article, several case studies are presented based on the experiences of real people such as Tanya, a critical care nurse. Tanya explains how she was sold on the benefits of a higher salary but was left owing money to HMRC.
Outlining some of the warning signs she wished she could’ve spotted, Tanya reveals how she was asked to sign multiple contracts, was made to pay a large fee on her gross pay and was given a complex pay arrangement that split her monthly salary into two payments.
She discusses how HMRC contacted her which prevented her from building up a larger tax bill:
“HMRC wrote to me so soon after using my umbrella company, which I am happy about, otherwise, I would have built-up a larger tax bill. This has helped me look at things differently as I am more aware of tax-avoidance because HMRC helped steer me away from my continued use of my tax-avoidance umbrella company.”
Tanya now is faced with a bill of almost £7,500 and will likely never recover the high fees charged by her umbrella company.
Click here to read the article on the UK GOV website. And remember, if it sounds too good to be true it almost certainly is. Don’t get caught out by tax avoidance.
If you think you may be involved in a tax avoidance scheme, contact one of the Hunter Gatherer team as soon as you can. Call 0203 475 4175 or email firstname.lastname@example.org