Asked by: Saqib Bhatti (Conservative - Meriden and Solihull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of extending joint and several liability for payroll taxes within umbrella company arrangements on recruitment agencies supplying temporary staff to public sector bodies, including the NHS.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Umbrella companies are a type of employment intermediary that engages workers on behalf of recruitment agencies and end client organisations. Although many umbrella companies operate diligently, others are used to facilitate non-compliance including tax avoidance and fraud.
From 6 April 2026, recruitment agencies are responsible for ensuring that Pay As You Earn and National Insurance contributions obligations are met when they choose to use an umbrella company to engage a worker. Where these obligations are not met, HMRC will recover underpayments from the recruitment agency. If there is no recruitment agency involved in an arrangement with an umbrella company, this responsibility will fall to the end client organisation. The rules apply regardless of the sector in which workers are engaged.
The new rules are intended to drive behavioural change in the temporary labour market, increasing the amount of assurance undertaken by organisations that use umbrella companies to force non-compliance umbrella companies out of the market. This change is forecast to protect around £2.7 billion across the scorecard period up to and including 2030-31.
It is right that organisations that choose to use umbrella companies to engage workers should take steps to make sure that they are compliant. HMRC has published extensive guidance to support organisations that use umbrella companies to undertake assurance checks.
Asked by: Saqib Bhatti (Conservative - Meriden and Solihull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what consideration she has given to establishing a government-recognised (a) compliance and (b) accreditation standard for umbrella companies to reduce payroll tax risk within labour supply chains supplying public sector bodies.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Umbrella companies are a type of employment intermediary that engages workers on behalf of recruitment agencies and end client organisations. Although many umbrella companies operate diligently, others are used to facilitate non-compliance including tax avoidance and fraud.
From 6 April 2026, recruitment agencies are responsible for ensuring that Pay As You Earn and National Insurance contributions obligations are met when they choose to use an umbrella company to engage a worker. Where these obligations are not met, HMRC will recover underpayments from the recruitment agency. If there is no recruitment agency involved in an arrangement with an umbrella company, this responsibility will fall to the end client organisation. The rules apply regardless of the sector in which workers are engaged.
The new rules are intended to drive behavioural change in the temporary labour market, increasing the amount of assurance undertaken by organisations that use umbrella companies to force non-compliance umbrella companies out of the market. This change is forecast to protect around £2.7 billion across the scorecard period up to and including 2030-31.
It is right that organisations that choose to use umbrella companies to engage workers should take steps to make sure that they are compliant. HMRC has published extensive guidance to support organisations that use umbrella companies to undertake assurance checks.
Asked by: Saqib Bhatti (Conservative - Meriden and Solihull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment HMRC has made of the risk of unpaid employer National Insurance contributions within labour supply chains providing temporary staffing to the NHS following the Ducas tax dispute; and whether she plans to introduce a statutory (a) accreditation and (b) licensing regime for umbrella companies operating in the labour market.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Umbrella companies are a type of employment intermediary that engages workers on behalf of recruitment agencies and end client organisations. Although many umbrella companies operate diligently, others are used to facilitate non-compliance including tax avoidance and fraud.
From 6 April 2026, recruitment agencies are responsible for ensuring that Pay As You Earn and National Insurance contributions obligations are met when they choose to use an umbrella company to engage a worker. Where these obligations are not met, HMRC will recover underpayments from the recruitment agency. If there is no recruitment agency involved in an arrangement with an umbrella company, this responsibility will fall to the end client organisation. The rules apply regardless of the sector in which workers are engaged.
The new rules are intended to drive behavioural change in the temporary labour market, increasing the amount of assurance undertaken by organisations that use umbrella companies to force non-compliance umbrella companies out of the market. This change is forecast to protect around £2.7 billion across the scorecard period up to and including 2030-31.
It is right that organisations that choose to use umbrella companies to engage workers should take steps to make sure that they are compliant. HMRC has published extensive guidance to support organisations that use umbrella companies to undertake assurance checks.
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many individuals have settled their loan charge liability (a) in full or (b) through a Time to Pay arrangement since the publication of the Ray McCann review on 26 November 2025 until the most recent date for which data are available.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC have now written to all taxpayers that they have identified as being eligible for the settlement opportunity, to explain how they are affected by the outcome of the review. Taxpayers who register an interest in settling under the new opportunity now will also be prioritised for contact and receive a settlement offer sooner once the settlement scheme has been introduced.Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to FOI2025/189761 dated 2 January 2026, what assessment she has made of the value for money of HMRC's compliance and enforcement activities relating to the Loan Charge.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
This Government recognised that concerns were raised about the Loan Charge under the previous government and that some felt strongly that it had not been handled appropriately.
The Government therefore commissioned a new independent review of the Loan Charge to bring the matter to a close for those affected, ensure fairness for all taxpayers and ensure that appropriate support is in place for those subject to the Loan Charge.
The Government’s response to the review represents a fair and proportionate attempt to provide a route to resolution for those who have not yet been able to settle with HM Revenue and Customs (HMRC). In turn, this requires those individuals or employers to now come forward and engage with HMRC in good faith.
Whilst HMRC assesses the overall resources needed to carry out Loan Charge compliance activity, this is not based on detailed case-by-case forecasts. HMRC is required to collect tax due under the law. The progression and resolution of Loan Charge cases depend on a range of variable and often uncertain factors. These include the extent to which taxpayers choose to engage with HMRC to settle their enquiries.
In line with most tax policy changes, Tax Impact and Information Note (TIIN) setting out HMRC’s assessment of the impacts of the Loan Charge were published when the Loan Charge was announced in 2016. Further TIINs were published alongside subsequent changes to the Loan Charge.
Asked by: Jack Rankin (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to offer the same settlement terms that will be provided in the settlement resulting from the implementation of the McCann Review to those that have already settled with HMRC.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
I refer the Hon. Member to the answers I gave on 9 February 2026 to UIN 109841, 109843 and 109842 and the answer I gave on 27 February to UIN 114103.
Asked by: Jack Rankin (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the effectiveness of (a) the loan charge and (b) HMRC in tackling disguised remuneration schemes.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
I refer the Hon. Member to the answers I gave on 9 February 2026 to UIN 109841, 109843 and 109842 and the answer I gave on 27 February to UIN 114103.
Asked by: Jack Rankin (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the number of outstanding cases of people facing the Loan Charge that will be settled as a result of the McCann Review.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
I refer the Hon. Member to the answers I gave on 9 February 2026 to UIN 109841, 109843 and 109842 and the answer I gave on 27 February to UIN 114103.
Asked by: Luke Taylor (Liberal Democrat - Sutton and Cheam)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the success of the Loan Charge and HMRC’s approach to dealing with so-called disguised remuneration schemes.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
I refer the Hon. Member to the answers I gave on 9 February 2026 to UIN 109841, 109843, 109842, and the answer I gave on 27 February to UIN 114103.
Asked by: Luke Taylor (Liberal Democrat - Sutton and Cheam)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the value-for-money to the taxpayer of the Loan Charge.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
I refer the Hon. Member to the answers I gave on 9 February 2026 to UIN 109841, 109843, 109842, and the answer I gave on 27 February to UIN 114103.