Viewing Umbrella Companies and HMRC from 3 Introduction to an Umbrella Company - Introduction to an Umbrella Company Written by Contractor Supermarket

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Umbrella Companies and HMRC

Her Majesty's Revenue and Customs (HMRC) is a non-ministerial department of the British Government primarily responsible for the collection of taxes, some forms of state support, some aspects of UK frontier protection and import controls.

• HMRC was formed by a merger of the Inland Revenue and Her Majesty's Customs and Excise and came into formal existence on 18 April 2005.

 

HMRC Collect Tax for the Government

The department is responsible for the administration and collection of direct taxes including income tax and corporation tax, capital taxes such as capital gains tax and inheritance tax, indirect taxes (including value added tax), excise duties and stamp duty land tax, and environmental taxes such as air passenger duty and the climate change levy.

Other aspects of the HMRC's responsibilities include National Insurance contributions, the distribution of child benefit and some other forms of state support including the Child Trust Fund, payments of Tax Credits, enforcement of the National Minimum Wage and collection and publication of the trade-in-goods statistics.

 

HMRC have three main targets:

1. To improve the extent to which individuals and businesses pay the amount of tax due and receive the credits and payments to which they are entitled
2. To improve customer experience, support business and reduce the compliance burden
3. To strengthen frontier protection against threats to the security, social and economic integrity and environment of the United Kingdom in a way that balances the need to maintain the UK as a competitive location in which to do business

HMRC don't make the law, they just carry out the Government's wishes. If you don't like that vote for a different Party! This is what they do:

• Work on behalf of the Government
• Collect the taxes
• Ensure that contractor umbrella companies & contractors operate within the law.

 

Pay Just 15% Tax!

Mark Ridgeon, MD of Excellium Umbrella, has a word of warning for any contractor who may be taken in by some companies who falsley claim to be able to offer up to 85% net pay:

• "One word of advice, tempting though it is, don't break the law. The probability of being caught is very high. You will be fined and also could end up as a guest of HM Prison Service. It will mean the end to your contracting career, and maybe a lot more."

There is a massive amount of legislation that affects you as a contractor. If you want to find out more, visit HMRC's website. Unless you're an employment and legal specialist prepare to be confused.

 

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1. 60 second guide to an umbrella company
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4. Help! I have to register with an umbrella company
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written on2010-08-21 22:54:53

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