HMRC continue to name and shame tax avoidance schemes and those involved in the supply chain

More firms named in HMRC Clampdown on Tax Avoidance Schemes

HMRC continue to name and shame tax avoidance schemes and has shared another four companies, on their ‘named tax avoidance schemes, promoters, enablers and suppliers’ list and now takes the list to 11 on their website with many more yet to be named.

The company names can be found on HMRC’s website under the page for the Current list of named tax avoidance schemes

The 4 new named companies on the HMRC list were found to be using Tax Avoidance Schemes.

What HMRC Uncovered

HMRC found the main theme of the schemes being used is the worker receives two payments, of which the second has not been taxed under PAYE, disguised as a loan or grant.

HMRC are looking to clamp down on these so-called Loan/ Grant Schemes as they are missing out on monies owed to HMRC but because they also leave in most cases, the worker, recruiter or end client to pick up the bill, as many of these non-compliant payroll companies will close overnight.

According to the FCSA website – 3 of the 4 most recent companies named are now in the process of insolvency.

How To Protect Workers, Recruiters And End Clients

The only way to fully protect contractors, recruiters and end clients… is to choose an FCSA Accredited payroll provider who has many checks in place to guarantee that all its partners work within the lines HMRC set out.

To ensure you’re always up to date – visit the government’s website

If you want to check the very latest named and shamed tax avoidance schemes, you can visit the following page on the government’s website: Current list of named tax avoidance schemes, promoters, enablers and suppliers. It will provide all the information you need about each named company and advice if you’ve engaged with one for your payroll.

Conclusion

Remember – first things first – pick a compliant umbrella company like New Red Planet and rest assured you and your tax affairs will be managed correctly and in accordance with all UK Tax and Employment laws.

If you are looking for a reliable, best-in-practice umbrella company that prides itself on its client-focused approach, contact New Red Planet today using the form below or call us on 0161 713 1730.