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A recent HMRC win in the Court of Appeal resulted in an IT contractor having to settle his Income Tax liability following the use of a disguised remuneration tax avoidance scheme. He had entered into an arrangement whereby he worked through an Umbrella company based outside the UK whilst providing services to UK-based financial service companies. The contractor received most of his earnings in the form of loans, which were claimed not to be taxable and were set up through the umbrella company.
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