Tax evasion crackdown on dodgy employers
Newsletter issue – November 2025
The crackdown targets fraudulent use of "umbrella companies" - sometimes legitimate but often used by rogue operators who fail to pay employment taxes while acting as the worker's nominal employer. From April 2026 new laws make recruitment agencies legally responsible for ensuring correct employment taxes are paid for temporary workers; where no agency is used the end client company will be liable.
The Treasury says the change stops wilful tax avoidance, protects honest employers from unfair competition, and prevents workers being left in vulnerable positions; the change is presented as part of the government's wider tax compliance agenda.
HM Treasury estimates about 275,000 workers a year are supplied by cowboy operators using umbrella companies to evade tax. HMRC will be able to pursue agencies or end clients when umbrella companies fail to pay the right tax. The government expects the reforms to raise nearly £900 million in year one and almost £3 billion over five years.
What our clients say about us...
"Paul has provided accountancy services to my company for 2 years now. I can recommend Paul very highly; his skills as an accountant are highly detailed and professional and he is always available to provide advice. One aspect of the way Paul works that I greatly appreciate is a preference to meet face to face when there is a detailed conversation to be had. I personally find this more productive and is a benefit of working with a small accountancy firm that you wouldn't get with the large faceless providers."
ALISTAIR FAIRWEATHER - PROGRAMME & PROJECT MANAGER, DELIVERING/RESCUING I.T. 7 BUSINESS CHANGE WITH BUDGETS UPTO £50M INC SUPPIER MANAGEMENT
"I couldn't ask for more from Paul as an Accountant. Paul has been accountant to Work Relief Charity Recruitment for just over a year now and is proving an invaluable asset. Accurate, knowledgeable, flexible with an emphasis on service delivery, I would recommend Paul's services to any organisation looking for an accounts professional."
Neil Price - Managing Director at Work Relief Charity Recruitment
"Paul was a referral from a family member when I started my business 2 years ago. As this was the first time I had ever run my own company I was totally clueless over the financial side of matters and was worried that I may have made mistakes in any of my accounting. I needn't have worried as after enaging Paul for a set monthly fee he was always there on the end of the phone for all sorts of questions I had and no matter how trivial they were Paul gave me all the information I required and more and did an excellent and painless job at the end of my first year! Couldn't ask for any better to be honest. Just two words - hire him!!!"
Lee Westrap MBCS - Director - Bulldog IT Services
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