31 August 2023
HM Revenue and Customs (HMRC) has updated the list of named tax avoidance schemes, promoters, enablers and suppliers.
The below schemes have been added as of 31 August 2023:
- Pay Rec Limited – scheme users enter into an employment contract with Pay Rec Limited (PRL), which also invites them into a bonus scheme. PRL pays the scheme users a salary around the National Minimum Wage (NMW) or National Living Wage (NLW) with income tax and National Insurance contributions (NICs) deducted. At, or around the same time, the scheme users also receive a second payment, described as an advance against future bonus payments. This is paid without income tax and NICs deducted
- Prime Umbrella Services Ltd - arrangements involve a user providing their services to end clients/recruitment agencies through Prime Umbrella Services Ltd and receiving two payments, one equivalent to NMW or, if applicable, the NLW salary and a second payment, described as a ‘pass through item’, on behalf of Wilson Costello Limited. The result is that the total remuneration for the users’ services is artificially separated into two payments. The first is a salary (equivalent to NMW/NLW) with tax and NICs deducted, and a second payment which is made without tax or NICs deducted.
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