HMRC targets non-compliant umbrella schemes with £1.1m penalty

HMRC has handed down a £1.1 million penalty to a promoter behind a non-compliant umbrella scheme, in the latest move to intensify its clampdown on tax avoidance.

The scheme, which disguised earnings as loans, was found to fall within disclosure rules — and the tribunal upheld the maximum penalty.

The move comes as scrutiny across payroll supply chains continues to grow, with new rules increasing the compliance burden on agencies and end clients. Businesses linked to non-compliant arrangements — even unintentionally — could face financial and reputational consequences.

Industry impact

The case highlights rising risks in the umbrella sector, including:

• Greater HMRC enforcement activity

• Increased liability across the supply chain

• Ongoing focus on disguised remuneration schemes

  
  

Compliance in focus

The ruling underlines the importance of transparent, fully compliant payroll solutions.

For a safer, fully compliant payroll solution, contact our team to ensure your business stays protected as regulations tighten.

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sales@mineralpayroll.com