Almost fifty umbrella payroll services companies are on a list of businesses published on the 2 March 2023 as being under investigation by HMRC for operating non-compliant and unethical umbrella payroll services.
The government and industry have long encouraged recruitment businesses to examine their supply chain, complete comprehensive due diligence before appointing a payroll provider, and be aware of the dangers of umbrella company fraud.
Every business which either places or uses temporary labour should be mindful of the potential dangers posed to their business by mini umbrella company fraud in their supply chain.
Not only can a fraudulent supply chain lead to reputational and financial damage to a business, but workers may not receive all they’re entitled to.
Mini umbrella company fraud also significantly reduces tax payments to HMRC including PAYE, National Insurance and VAT.
Driven by the company’s CEO David McCormack, fully HMRC compliant outsourced payroll solution provider HIVE360 has long campaigned for the recruitment industry to work towards eradicating the malpractice and abuse of tax legislation that threatens the reputation and survival of many businesses.
It is calling for more transparency of payroll solutions from workers affected by the growing concerns over ‘skimming’, disguised costs, and hidden agency kickbacks, in the PAYE sector.
David McCormack says: “There is growing concern and pressure on the umbrella payroll industry for reform and greater transparency following several tax avoidance schemes and unscrupulous models of payroll being run by some of the industry’s most respected players, which have recently been exposed due to disguised costs and unethical practice.
“The government continues to encourage recruitment businesses to examine their supply chain and complete comprehensive due diligence before appointing a payroll provider,” explains David.
“It’s not uncommon for recruitment businesses to unknowingly put their business at risk by utilising a Mini Umbrella Company (MUC) in the supply chain. For this reason alone, it’s essential to undertake thorough due diligence to confirm an outsourced payroll provider can demonstrate it is fully compliant and ethical.
Included on HMRC’s most recent list of companies under investigation for umbrella company tax avoidance schemes, is one called Hive Umbrella Ltd (www.hiveumbrella.co.uk).
“This company is not and never has been part of HIVE360 Ltd in any way,” stresses David. “Our business, HIVE360, is passionate about compliance, service excellence and better experiences for workers. We are strongly against any non-compliance and tax avoidance schemes being used by payroll and employment administration providers. Indeed, we are actively striving to challenge these schemes with solutions that are fully transparent, and provide a fairer deal for agency workers by helping them to save money and tackle the cost of living crisis.
“HIVE360, is passionate about compliance, service excellence and better experiences for workers. We are strongly against any non-compliance and tax avoidance schemes being used by payroll and employment administration providers. Indeed, we are actively striving to challenge these schemes with solutions that are fully transparent, and provide a fairer deal for agency workers by helping them to save money and tackle the cost of living crisis.
“We encourage anyone who knows of Hive Umbrella Ltd or who might be using them, as well as all other companies named by HMRC as running a non-compliant services, to change their payroll provider as soon as possible, and report any information to HMRC.”
HIVE360 ensures full HMRC, RTI, GLAA and IR35 compliance, and provides expert, compliant and reliable PAYE payroll support and comprehensive employment administration for businesses, recruiters and recruitment agencies, their workforce and candidates.
