06 September 2024
HM Revenue and Customs (HMRC) has added four new names to the current list of named tax avoidance schemes, promoters, enablers and suppliers.
These additions are:
- Everest Contracting Limited
- Innovate Limited (Registered in the Isle of Man)
- Odyssey Payroll Limited
- Optima Limited (Registered in the Isle of Man)
Each scheme is reported to have paid a small payment, at or close to minimum wage rates, where the correct tax position is applied, followed by an additional payment that is not taxed, sometimes referred as a loan or loan agreement. It is HMRC’s view that the additional payment should be seen as normal income.
HMRC also provide the following context:
“HMRC have previously published a Spotlight on agency workers and contractors employed by umbrella companies Spotlight 60. HMRC are aware that some Umbrella Companies operate more than one scheme, such as a standard compliant scheme and a non-compliant scheme. HMRC advise scheme users to familiarise themselves with the guidance and to satisfy themselves that the correct amount of tax is being deducted on their income.”
It is important to spread awareness of these schemes and to not get caught up in them. But, if you think you are involved in one, or know of someone who is, you can contact HMRC for assistance and guidance.
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