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Days may be numbered for offshore umbrella companies

5 December 2012

Mark Groom, Deloitte partner says: “The government announced it will undertake an internal review of “offshore intermediaries” being used to avoid tax and NICs and will provide an update at Budget 2013. UK businesses hiring temps through UK agencies can be unwittingly at risk, if they do not look beyond the agency to check whether the real source of the workers lies offshore.

“Subject to complex regulations, offshore employers are not subject to employers’ national insurance contributions, even where their employees ordinarily work in the UK.  The respective PAYE and NIC legislation can result in unexpected liabilities for any of these parties in certain circumstances, including the end users in the UK hiring the temps.

“We welcome the government’s review, as greater certainty and protection is required for unsuspecting UK businesses.”

Ends

Notes to editors:

About Deloitte
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.

Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.

The information contained in this press release is correct at the time of going to press.

Member of Deloitte Touche Tohmatsu Limited.

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Laura Parsons
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Deloitte LLP
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