10 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 9 August 2023:
- ABC Umbrella Ltd – the arrangements involve individuals providing their services to end clients or agencies through ABC Umbrella Limited as their employer. The individuals also enter an agreement with Krevit Ltd where individuals grant the right to enter an annuity agreement in exchange for payments (the grantee payments). The individuals receive payment from ABC Umbrella Limited. However, tax and National Insurance contributions (NICs) are only deducted on a small part of the amount. This is evidenced on the payslips and figures reported to HMRC. It is HMRC’s view that the larger amount, paid without tax or NICs deducted, is for the grantee payments, but paid by ABC Umbrella Limited on behalf of Krevit Ltd. It is also HMRC’s view that the grantee payments are additional disguised income for services provided by individuals through ABC Umbrella Limited, and the entire payment should therefore be subject to tax and NICs
- IP Global Consulting Ltd (IPG) - invoices a recruitment agency for the services provided by a scheme user. On receipt of payment from the recruitment agency, IPG pays a National Minimum Wage (NMW) amount to the user with tax and NICs deducted. IPG also makes a second payment to the user, described as an ‘advance’, without tax or NICs deducted.
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