HMRC issues updated list of tax avoidance schemes with warning to 'get out'

David Bentley

22 May 2024 at 10:02 am·5-min read

A young couple with financial documents — Stock picture of a young couple with financial documents as HMRC urged people to leave or report tax avoidance schemes - it has published an updated list naming 71 of the schemes -Credit:Shared Content Unit

HM Revenue and Customs officials have issued a new list of tax avoidance schemes and explained what people must do immediately to leave or report one of the companies. In a new announcement, it has published the names of 71 tax avoidance schemes, promoters, enablers and suppliers.

More names were added this month to bring the list up to date. HMRC said: "If you're worried about becoming involved in a tax avoidance scheme, or think you're already involved and want to get out of one, HMRC is here to help. If you are involved in any of the tax avoidance schemes shown or recognise any of the promoters, enablers or suppliers, and are not already talking to HMRC about your tax position, you should contact HMRC as soon as possible. You can also report a tax avoidance scheme to HMRC."

Individuals using any of the schemes shown on the list - or any other similar ventures - are "strongly advised" to withdraw from it and settle their tax affairs to prevent building up a large tax bill. Tax avoidance schemes can be reported to HMRC and if you are already part of one but want to leave, you can contact the tax office at a dedicated email address which is CAGetHelpOutOfTaxAvoidance@hmrc.gov.uk

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Government guidance says: "Tax avoidance involves bending the rules of the tax system to try to gain a tax advantage that Parliament never intended. It often involves contrived, artificial transactions that serve little or no purpose other than to produce this advantage. It involves operating within the letter, but not the spirit, of the law.

"Most tax avoidance schemes simply do not work, and those who use them may end up having to pay much more than the tax they tried to avoid, including penalties."

The new updated list of tax avoidance schemes is as follows:

ABC Umbrella Ltd
Abchurch LTD
Acacia Management Services Limited
Accent Umbrella Ltd
ADYE Ltd (Based in Cyprus) – see Apricot Umbrella Limited
Alphasaint Ltd
AML Tax (UK) Limited
Apricot Umbrella Limited
Bestia Holdings Ltd (Incorporated in Cyprus) – see Dalespay Ltd
Bluemoore Associates Ltd
Bluestar Financial Solutions Limited
Buckingham Wealth Ltd (Incorporated in Belize)
Canopaye Limited
Charteris Management Ltd
Compliant Pay Ltd
Contractor Buddy PCC Limited (Incorporated in Isle of Man) – see Payeworx Ltd
Contractor Bureau Limited
Contractorcare Ltd
Corre Holdings SA (Registered in Switzerland) – see Procorre LLP
Countrywide Partners Limited
Dalespay Ltd
Denmedical UK Limited – see AML Tax (UK) Limited
Deposlo Holdings Ltd (based in Cyprus) – see Edge Umbrella Limited
Easyway Umbrella Limited
Edge Umbrella Limited
Excala Solutions Limited
Flex Payroll and Accounting Services Ltd
Flexen Ltd (Incorporated in Cyprus) – see Rainbowpay Ltd
Focus Contractor Limited
Goldfish Umbrella Limited
Griffith Anderson Limited – see Umbrella Agency Limited and Charteris Management Ltd
Hamilton Bradbury Ltd
Hive Umbrella Ltd
Howe Consultancy Limited (Incorporated in Isle of Man) – see Charteris Management Ltd
Integra Resourcing Limited (Incorporated in Malta) – see Charteris Management Ltd
IP Global Consulting Ltd
Jeceris Limited – see Charteris Management Ltd
Krevit Ltd – see ABC Umbrella Ltd
Minerva Services Ltd (Incorporated in Belize) – see Buckingham Wealth Ltd
MLG Pay Limited
Olympus Contracting Limited
Ombros Solutions Limited – see Charteris Management Ltd
Omni Contractors PCC Limited (Incorporated in Isle of Man) – see Saxonside Limited - Saxonside Share Growth
PAYE Services Limited
PAYEme Ltd
Payeworx Ltd
Pay Rec Limited
Paystone Services Limited
Peak PAYE Limited
Prime Umbrella Services Ltd
Procorre LLP (Registered in Singapore)
Purity Ltd
Purple Pay Limited
Rainbowpay Ltd
React Administration Services Limited
Resource Hubco Limited
Saxonside Limited
Signature Vintage Limited
SmartPay Limited (Incorporated in the Isle of Man)
Solucionis Ltd
Target Umbrella Limited – see Integra Resourcing Limited
Taurus Limited (Incorporated in Isle of Man) – see Charteris Management Ltd
Ultimate Planning Ltd – see Compliant Pay Ltd
Ultra Employment Ltd
The Umbrella Agency Limited
Umbrella Contracts Limited - see Griffith Anderson Limited
Veqta Ltd
Vision HR Solutions Ltd
We Are Ava Limited
Wilson Costello Limited – see Prime Umbrella Services Ltd
Worx 4U Limited

Details of how of the named schemes allegedly operates are given here. HMRC points out it is not a complete list and there are others it cannot name at this time. This could be because it is still gathering information or considering representations. It may also not yet be aware of other schemes, promoters, enablers and suppliers that are running.

Stop notices have been issued to a number of promoters of tax avoidance schemes, requiring them to stop selling or promoting them. There are currently 23 of these notices in effect. If a promoter fails to comply, they can face penalties of up to £100,000 which can increase to up to £1 million in certain circumstances.

If you're found to be involved in a tax avoidance scheme HMRC says it can fully investigate your tax affairs, and may also:

Require you to pay the tax you're trying to avoid upfront. You may receive a tax bill called an accelerated payment notice - this is a requirement to pay the full amount of tax or National Insurance contributions HMRC calculates as being due, upfront and within 90 days.
Take legal action. You may end up in court if you do not pay the tax and National Insurance contributions you owe — HMRC wins around 9 out of 10 avoidance cases heard in court, if you lose you could face life-changing bills, with legal costs on top of the tax you owe, penalties and growing interest.
Treat you as a high-risk taxpayer. This means HMRC will closely inspect all of your tax affairs in future, not just your use of the avoidance scheme.

Get breaking news on BirminghamLive WhatsApp . Join our dedicated community to get the latest updates. You can find out more in our Money Saving Newsletter which is sent out daily with all the updates you need to know on pensions, benefits, finances, bills, and shopping discounts.

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