Why compliance is essential
There are severe consequences for choosing the wrong umbrella company, so it is very important to find one that you can trust. The consequences may include:
Tax penalties
If there are any problems with your personal taxes, you will be held accountable by HMRC (not your umbrella company) which may result in interest charges and penalties.
Criminal record
You could end up with a criminal record if your tax avoidance was deliberate.
Here are some tips to help you avoid the consequences listed above:
Review your taxes online
The government gives workers the opportunity to keep an eye on their tax information and contact HMRC using a free online gov.uk account.
Payslips
Check every payslip you receive and ensure the tax code on your payslip is up to date.
