Umbrella VAT case puts compliance in the spotlight

A recent case involving an umbrella company has brought renewed attention to the tax and VAT responsibilities within the sector. The dispute centres on how VAT treatment should apply to payments made through an umbrella company, with the business challenging HMRC’s position.

The case is another reminder of the importance of clear records, accurate tax treatment and understanding the responsibilities that sit across the labour supply chain. The wider rules around umbrella companies have also tightened, with new PAYE legislation introduced from 6 April 2026 that can make other parties in the supply chain jointly liable for certain PAYE debts.

Compliance guaranteed

At Mineral, compliance is at the heart of what we do. We provide payroll and CIS solutions designed to help contractors and businesses manage their obligations clearly and efficiently.

Speak to our expert team for any help and advice.