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HMRC Amend the T&S Error


HMRC have published an amendment to Clause 14 of the Finance Bill 2016 to correct the error that they originally made whereby the umbrella company test of Supervision Direction and Control (SDC) was effectively replaced by an assessment of wider employment status issues.

Crucially, this change is being applied retrospectively and backdated to 6th April 2016…which basically erases the gap between 6th April 2016 and 15th June 2016 where the SDC test didn’t apply to umbrella workers. Presumably this is very bad news for those umbrella companies who chose to continue offsetting T&S expenses post-6th April in the belief that when the amendment was announced, it would not be applied retrospectively!

HMRC document clause update: 

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