An addition to the tax avoidance schemes list

07 March 2023

HM Revenue and Customs (HMRC) has updated the list of named tax avoidance schemes, promoters, enablers and suppliers.

Hive Umbrella Ltd (HUL) has been included on the list on 2 March 2023. The scheme user enters an employment contract with HUL, which states the user will be paid at the National Minimum Wage (NMW). The user undertakes work for an agency/end client and submits timesheets to HUL, who invoice the agency for the work done. The scheme user then receives a single payment from HUL which consists of two elements. The first element is the NMW salary with tax and national insurance contributions (NIC) paid. The second element described as ‘advance drawn down’ is not taxed, which therefore affirms as running a tax avoidance scheme using untaxed pay advances.

This brings the total amount of separate companies on the list to 36.If you suspect a tax avoidance scheme is being used HMRC strongly urge you to speak to them and avoid contributing to the ever expanding list of non-compliant companies.

You can also read more on what you can do to reduce the risk of using a non-compliant umbrella company and how to find out about the warning signs of mini umbrella company fraud.

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