Businesses that uses temporary labour should be aware of the potential dangers posed to their business by Mini Umbrella Company (MUC) fraud in their supply chain. Not only can a fraudulent supply chain lead to reputational and financial damage to your business, but your workers may not receive all they’re entitled to. MUC fraud also significantly reduces tax payments to HMRC including PAYE, National Insurance and VAT.
As an end user or provider of temporary labour it is your responsibility to be clear about who ultimately pays the workers and how they are paid. This is the only way to protect your business from becoming entangled in MUC or other supply chain frauds. Most MUC arrangements are considered to be fraudulent, so make sure you spot the warning signs to protect your business.