29 July 2024
HM Revenue and Customs (HMRC) has added a new name to the current list of named tax avoidance schemes, promoters, enablers and suppliers.
The most recent update was on 25 July 2024 with the addition Blizzard Pay Ltd (BPL).
HMRC has provided additional information regarding its interpretation of the schemes and how they work:
“Individuals provide services to end clients as employees of BPL. Employees receive part of their BPL remuneration at a rate close to the National Minimum Wage or National Living Wage which is subjected to deductions for Income Tax and National Insurance Contributions (NICs). Employees receive the balance of their remuneration without the deduction of Income Tax or NICs.”
“HMRC’s view is that both elements of the payment should be treated as ‘normal income/as the user’s salary’, and therefore subject to Income Tax and NICs. HMRC have previously published Spotlight 60 on Disguised remuneration schemes involving agency workers and contractors employed by umbrella companies. HMRC are aware that some Umbrella Companies operate more than one scheme, for example a standard compliant scheme and a non-compliant scheme. The AUL website shows examples of contractors working in the medical and tech sectors. HMRC advise employees of AUL 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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