Gossips

Umbrella companies are well known around the world, and more people are starting to make use of them to make some extra cash. The tax-free system makes this a target for the government, and there have been growing calls to address this issue.

Unlike limited companies, an umbrella company does not fall unto the range of taxes. This means that when you make use of the umbrella services, you don’t have to pay tax on what you earn. Many companies are staying within the rules and have developed great working relationships with contractors and members. The problem is that some companies are stretching the boundaries a bit too much, dancing the fine line between what is taxable and what is not. Two choices are then left. That is to either find ways to enforce the rules and regulations or to make this industry taxable. Only time will tell where the government will go from here.