£1m penalty for umbrella company

An umbrella company (Industria Umbrella Ltd) that was offering a way of reducing an individual's tax and NI liabilities has been hit with the maximum penalty and forced to close.

This story centres around an illegal scheme whereby individuals were paid the minimum wage on a monthly basis. The remainder of their wages came in the form of a loan to avoid the obligation to account for income tax and NI contributions.

The umbrella company has since shut down and shows once again, that if it looks too good to be true, it is too good to be true!

RollPay recommends to avoid these types of schemes as the financial implications can be considerable. If you would like to discuss a compliant umbrella solution, please contact sales@rollypay.co.uk or call 0800 131 0 131.