19 May 2021 
Julia Ascott, Employment Taxes Specialist
Further HMRC guidance has been published on Mini umbrella company fraud to highlight the potential pitfalls of employers entering into these types of arrangements. A mini-umbrella company is typically one which employs a small number of temporary workers and working arrangements are facilitated by a main promoter business. Fraud is known to occur around the flat rate VAT scheme as well as the employer allowance for NIC and is explained in this recent BBC article.
HMRC recommend that employers using temporary workers through umbrella companies undertake adequate due diligence on their supply chains and look out for the following warning signs:
Definitely something to integrate into your supply chain checks.
***UPDATE ON 19/05/2021
A 'call for views' policy paper has been published by the Department of Digital, Culture, Media & Sport on supply chain cyber security.
