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PCG - cautious welcome to HMRC rogue umbrella company clampdown

Published on Feb 19, 2008 |

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Following the recent news that HMRC have waged war on contractor umbrella companies who have been abusing dispensations, The PCG has said that it is cautiously pleased to see the announcement.

John Brazier (PCG's Managing Director) said:

"PCG members have long been dismayed at the shoddy practices of some umbrella companies that seem to be exploiting expenses arrangements shamelessly, for instance by advising contractors to stay overnight with friends while claiming tax-free expenses for the stay."

"This is unlawful and HMRC are right to crack down on it: reputable contractors and umbrella companies do not operate in this way, and PCG wishes to see professional standards enhanced: that's why we established PCG (QU), an umbrella that operates to the highest standards of compliance."

"We would only have a problem with this if dispensations were incorrectly revoked from umbrella companies that administer the rules lawfully."