Construction Agency Workers

What Are the New Rules Around Umbrella Companies and Construction Workers?

As you might have heard, the UK taxman is cracking down hard on people working through intermediaries and umbrella companies. HMRC has decided that too many people are claiming to be self-employed, while they’re effectively working like full-time employees. They call it “false self-employment, and the sledgehammer they’re using to crack this particular nut has to do with the way you claim your expenses. It’s going to hit a lot of Construction Industry Scheme workers, leaving them worse off.

In April this year the law around “Intermediaries” changed. An “intermediary” is the legal term for organisations such as umbrellas, agencies and contracting companies. This is going to have a significant impact on the construction industry. In fact, it’s one of the biggest shake-ups of recent times.

Will The Changes To Rules For Agency Workers Leave Me Worse Off?

In a word, yes.