Supply Teachers Warned of the Perils of Offshore Umbrella Companies

The fallout from the Chancellor’s decision to clampdown on the activities of offshore Umbrella companies in the March 2013 Budget Statement, has started to be addressed by various industry unions and not least the education sector.

The NASUWT, the largest teachers’ union in the UK, published a stark warning to supply teachers who might be blissfully unaware that their employment ‘intermediaries’ are not paying all employment taxes on their behalf.

In the union’s April newsletter [click here to view their April Bulletin], it was suggested that many supply teachers are being pressurised by certain employment agencies to agree to be employed by an umbrella company as a condition of being offered work. Often, the teachers have no knowledge that their payroll provider is located offshore and that their tax position might be compromised.

Extract from RACS Group.