31 January 2025
A further addition to the List of named tax avoidance schemes, promoters, enablers and suppliers has been published. The updates are being added with much more regularity than we have historically seen as HM Revenue and Customs (HMRC) takes further steps to crack down on tax avoidance.
Why Have Medbridge Ltd Been Added to the List?
The new company, Medbridge Ltd, are cited to use the often seen method of making two separate payments, the first at or close to National Minimum Wage which is subject to tax and National Insurance and a second element which is not processed as normal earnings.
HMRC Advice for Medbridge Ltd Employees
HMRC view this as incorrect stating:
“HMRC’s view is that both elements of pay 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. Medbridge Ltd appears to target healthcare and local authority workers. 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 employees of Medbridge Ltd to familiarise themselves with the guidance and to satisfy themselves that the correct amount of tax is being deducted on their income.”
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