Don’t get caught out by tax avoidance scheme

Workers have been warned that they may face Inland Revenue sanctions because of a tax avoidance scheme affecting scores of low paid temporary staff. 

HM Revenue and Customs is concerned that some recruitment agencies are indulging in complex tax avoidance schemes. 

HMRC rules say that neither an agency, or the temporary worker they place in a job, need pay national insurance on payments they receive to cover costs. 

But an investigation has found that some workers are being forced into claiming for unnecessary expense benefits which only become clear if they take the trouble to study their pay slips. 

Campaigners say that innocent workers have found themselves at the centre of HMRC investigations as a result of the practice. 

Claire Thomas, Managing Director of Brampton Recruitment, said: “We are aware of such practices and believe they should be avoided. 

“Recruitment agencies have a duty to behave in a transparent manner and to work with the people we place in jobs to ensure they understand what they are being paid for and why.” 

A BBC investigation revealed that some workers were paid expenses even when they were due no money.

The Recruitment and Employment Confederation, which is the professional body for the industry, told the BBC: “HMRC needs to investigate any complaints, apply the law and ensure a level playing field for all recruiters.

“The current lack of enforcement puts recruiters who abide by the rules at a disadvantage and could lead to workers missing out on benefits.”

To seek further advice please call Brampton Recruitment on 01782 667591 or email Claire@bramptonrecruitment.co.uk

ENDS

For media enquiries contact Nigel Howle on 07762043436 or email nigelhowle@o2.co.uk   

Notes to editors: 

  • Brampton Recruitment is one of the areas leading independent recruitment agencies and specialise in recruitment within the commercial sector in Staffordshire and South Cheshire.  
  • The team helps place individuals in temporary, contract and permanent positions with employers from major multi-national companies to small independent firms.  
  • Brampton was founded by Claire Thomas in 2006.  
  • It is based at Queens Road, Newcastle-under-Lyme, Staffs and has a satellite office at Booth’s Park, Knutsford.