Umbrella company contractors could be in line for further flak from the taxman if they find themselves in the ‘crossfire’ between their umbrellas and the taxman. Contractors are even being encouraged to ‘shop’ their umbrella companies over things like being too free and easy with their expenses dispensations.

HMRC has just released a briefing – Revenue & Customs Brief 50/09 – in which it unambiguously announces its intention to step up investigations of what it perceives as abuses of expenses and dispensation rules by umbrella companies. (more…)