Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the role of umbrella companies in the use of disguised remuneration schemes.

The government has commissioned an independent review of the Loan Charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers.

The Government is committed to tackling promoters of tax avoidance and will consult on measures to tackle promoters of marketed tax avoidance, including new powers focused on those who own or control promoter organisations and options to tackle legal professionals behind avoidance schemes.

The Government announced action at 2024 Autumn Budget to tackle tax avoidance by umbrella companies. Legislation, effective from April 2026, will be introduced to make recruitment agencies using umbrella companies legally responsible for accounting for PAYE on workers’ pay. Where there is no agency in the supply chain, this responsibility will fall to the end client. This along with the measures on promoters will help prevent disguised remuneration in the future.

In relation to the prosecution of Loan Charge scheme promoters and operators, I refer the hon. Member for Bury North to the answer I gave on 16 October 2024 to Question UIN 7747.