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The Radio '5 Live investigates' was broadcast on Sunday night (October 21, 2012) and also featured an interview with Shout99's resident expert, Bob Jones. Bob, as well as being on Shout99's Ask An Expert panel is a former HMRC tax inspector and since retiring has established a reputation as an authority on expenses and related matters in the private sector.
The complex arrangement involving agencies and umbrella companies typically affects temporary workers, who are low paid, often minimum wage, when part of the payment comprises of dubious expenses.
The BBC reported how some agency workers have found they are being paid much more in expenses, for example to cover the cost of food and travel on assignments, than they actually spend. These companies can also save money by not having to pay employer's national insurance contributions on the part of the worker's income which is paid as expenses.
The fear for the lowly-paid worker is that HMRC could come after them.
The report, and Bob's interview, can be heard via the '5 Live Investigates' website until October 27.
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Susie Hughes © Shout99 2012
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