In the midst of the huge economic crisis, the government of the UK is now being set under pressure to retain its key staff members.
Some rogue companies are now targeting National Health Service (NHS) workers, promising them substantial amounts of savings through tax evasion strategies that could leave them penniless.
Her Majesty`s Revenue and Customs (HMRC) has warned key workers that if they sign up with these “unscrupulous” companies they could be left facing huge amounts of unexpected tax bills.
A number of workers are attracted to these umbrella companies because of social media adverts that guarantees them a substantial cut of their salaries. These rogue companies that operate at the edges of the law, cover up a portion of the workers` pay from the taxman in return.
An advert of one of the rogue companies on Twitter said: “If you’ve been drafted in to reinforce the NHS response to the #coronavirus pandemic, we want to assist you.”
Tim, a broker from Contracting Scout which advertises on Twitter and LinkedIn in order to attract key workers with the adverts, signed up with the company which offers 78 per cent take-home pay.
Tim said that he believes the umbrella companies he works with “are taking advantage of the few loopholes” and admitted that “the government doesn`t like it”.
He stated: “They [the government] do try and legislate against it, but legislation is extremely slow, so once the new legislation moves in there’s a hundred different umbrellas that pop up next week with a different type of payment structure which doesn’t get captivated by the law.
“So the goalposts are always moving and the providers are always trying to cater to that,” he added.