18 April 2024
During the month of April seven new names have been added to the List of named tax avoidance schemes, promotors, enablers and suppliers.
On 11 April 2024, the following companies, and connected persons if provided, where added:
- Acacia Management Services Limited (AMS) / Jake Hamill (former director of Acacia Management Services Limited)
- Alphasaint Ltd (ASL)
- Ultra Employment Ltd (UEL) / Mr Barry Aldridge (Director of UEL)
- Worx 4U Limited (W4U)
The first three companies all operated a scheme where a payment is made at or close to national minimum wage followed by a second payment that was paid without tax or National Insurance deducted.
However, Worx 4U operated another scheme with the following information provided by HM Revenue and Customs (HMRC):
“A company enters into a contract (the ‘Master Contract’) with ‘ContractingWorks’, the trading name of Worx 4U Limited (W4U), to provide consultancy services. W4U signs an agreement with the individual director of the company to undertake the consultancy services to W4U. W4U pay the individuals a flat fee per day exclusive of VAT. On the last working day of each week, the individual submits an invoice to W4U for their services. The individual then signs an advance deed, described as the ‘Self Employed Advance Deed’. This provides an initial advance against their future earnings or bonus payments of no more than £5,000 and, from time to time, such further advance payments as the company think fit. It is claimed that ‘Any advance payments shall be repayable’, but HMRC hold no evidence that these advance payments have ever repaid. W4U make the ‘advance’ payments to the individual, but without deductions for Income Tax or National Insurance contributions.”
On 18 April 2024, the following companies where added with regards to stop notices:
- Contractorcare Ltd
- PAYEme Ltd
- Prime Umbrella Services Ltd
Prime Umbrella Services, has previously been named under the Finance Act 2022 and has now been added again, due o the stop notice, under the Promotors of Tax Avoidance Schemes (POTAS) regime.
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