An umbrella company’s strongest defence against any challenge is its written contracts. An umbrella must ensure the contract with its clients is a contract for the provision of services and does not create or imply the umbrella is merely a vehicle passing individuals up the chain, or glorified payroll company passing payment down the chain. This is key to safeguarding its business against HMRC challenge.
An umbrella must also be certain its contract with its employees is a genuine and true contract of employment, conferring all rights and responsibilities under employment law as well as establishing the employees have a genuine and true right to claim expenses for tax purposes.
We can provide full help and support on reviewing and redrafting both contracts for services and employment contracts and/or provide bespoke contracts tailored to your needs to guarantee compliance with all tax and legal obligations, but more importantly provide you with a robust defence against any tax or legal challenges.