Hi All
I have received a very worrisome letter from HMRC Early intervention team with headline
Context:
I used an umbrella company for the first time and on recommendation from my recruitment agency I chose UmbrellaWorx Ltd.
As I was checking my payslips (weekly), I found something amiss ( only basic wage + second component) which raised the alarms. I could not keep track if they were paying right amount of tax/NI from payslips. As soon as I was sure they were not proper, I asked them questions re tax avoidance fraud. When they could not give me any answers, I terminated my employment with them and moved to PAYE with recruitment agency. So I have engaged with UmbrellaWorx Ltd for a period of 1 month (4 payslips).
At the end, UmbrellaWorx provided me with P45 which I gave to next employer. I thought that was the end of it.
Current:
I have this letter from HMRC now which says I may have been involved in tax avoidance whicle employed with UmbrellaWorx.
That I may end up being responsible in law for paying
Could someone please advise what should be my course of action. I have no clue as I have not dealt with any such issue. I have P45 from Umbrellaworx which I thought was good enough for HMRC. How can I know if they have made me a victim of tax avoidance scheme. And what should I reply to HMRC?
Appreciate your time
I have received a very worrisome letter from HMRC Early intervention team with headline
You my have been involved in tax avoidance
We're writing to you about the employment arrangements you had with Umbrellaworx Ltd
We're writing to you about the employment arrangements you had with Umbrellaworx Ltd
I used an umbrella company for the first time and on recommendation from my recruitment agency I chose UmbrellaWorx Ltd.
As I was checking my payslips (weekly), I found something amiss ( only basic wage + second component) which raised the alarms. I could not keep track if they were paying right amount of tax/NI from payslips. As soon as I was sure they were not proper, I asked them questions re tax avoidance fraud. When they could not give me any answers, I terminated my employment with them and moved to PAYE with recruitment agency. So I have engaged with UmbrellaWorx Ltd for a period of 1 month (4 payslips).
At the end, UmbrellaWorx provided me with P45 which I gave to next employer. I thought that was the end of it.
Current:
I have this letter from HMRC now which says I may have been involved in tax avoidance whicle employed with UmbrellaWorx.
That I may end up being responsible in law for paying
- tax/NIC which was avoided
- "late payment interest" on the above amounts
- penalty based on the above amount
"You must tell us if you think all the earnings from your employment have not had tax or NICs deducted from them under PAYE"
Appreciate your time
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