Isle of Man Umbrella Companies
The Chancellor took aim at tax avoidance in the budget this year – especially with a view to offshore tax avoidance.
The Chancellor has acted on the intermediaries tax loophole where UK companies avoid payroll tax by routing their payroll offshore in places like Jersey and Guernsey. Often the temporary workers used by those UK companies didn’t even know it was happening even though it could have led to them losing sick pay and maternity pay entitlement.
However, these schemes are illegal in the Isle of Man and one company was fined for trying to operate one. The Chancellor also said that he would work with the Isle of Man, Jersey and Guernsey over disclosure but the Isle of Man has been ahead of the game here and has worked closely with HMRC and the Government.
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