HMRC regularly updates its list of named tax avoidance schemes, promoters, enablers and suppliers. In September, the amount of named tax avoidance schemes reached over 100. Keep reading for more information about the dangers of using a tax avoidance scheme.
HMRC’s list of named tax avoidance schemes, promoters, enablers and suppliers
HMRC is increasingly stepping up its efforts to name and shame promoters of tax avoidance schemes. In just 21 days, it has added 11 new schemes to the list, mirroring concerns that tax avoidance schemes are becoming more prevalent.
Available on the government’s website, HMRC regularly updates a list of named tax avoidance schemes (available here). As a result of the August and September updates, more than 100 providers are named on the list.
The most recent additions and an update to the list of named tax avoidance schemes, promoters, enablers and suppliers were published under the Promotors of Tax Avoidance Schemes (POTAS) regime on 12th September 2024. The new additions to the list include:
- 1st Choice Umbrella Ltd / Omni Contactors PCC Ltd
- Adapt Ltd / TGI Payday Ltd
- AI Global Workforce Ltd
An update has been published to the list, and the second entry is published under the Promoters of Tax Avoidance Schemes regime:
You can also check the government’s list of tax avoidance schemes subject to a Stop Notice.
HMRC’s list of named tax avoidance schemes is presented alphabetically and updated regularly. If you recognise any name on this list and are concerned you’re involved in a tax avoidance scheme, please contact HMRC. The full list of named tax avoidance schemes, promoters, enables, and suppliers is available on the government’s website.
Dangers of engaging with a tax avoidance scheme
If HMRC finds out you have previously used a tax avoidance scheme or are currently using a tax avoidance scheme, you’ll have to pay any unpaid tax that is legally due – and interest. You may also have to pay a penalty. The longer you leave it to settle any unpaid tax, the more you will have to pay when HMRC reclaims it.
If you are a temporary working through an umbrella company or a recruitment agency, it’s incredibly important that you learn how to spot the signs of a tax avoidance scheme. Including how to check your pay to make sure you’re paying the correct amount of tax. HMRC has created a useful guide on the government’s website to help you spot the signs of a tax avoidance scheme and provides guidance to help you understand your pay arrangements so you don’t get any unexpected tax bills. More information about tax avoidance schemes is available here.
How to report a tax avoidance scheme
If you’re worried you are using a tax avoidance scheme and want to get out of it or are concerned about becoming involved in one, HMRC can help. If you are using any of the schemes or providers on HMRC’s list of tax avoidance schemes, you are strongly advised to withdraw from the scheme and settle your tax affairs. If you want to get out of a tax avoidance scheme, please contact HMRC.
You can report tax avoidance schemes and those offering you the schemes to HMRC. You can do this by using the report tax fraud or avoidance online service. The form is anonymous; you do not have to provide your email, name, or address. If you cannot use the online form, you can contact HMRC.
Always use a compliant umbrella company
It is incredibly important that, as a contractor, you are only using compliant umbrella companies for your payroll. Using a compliant umbrella company will ensure that you pay the correct income tax and National Insurance to HMRC every time you are paid and will prevent any unexpected tax bills from cropping up. A great way to ensure the provider you are using is compliant with UK tax laws and HMRC legislation is to look for FCSA accreditation or SafeRec certification.
FCSA
The Freelancer & Contractor Services Association (FCSA) is the UK’s membership body dedicated to ensuring the supply chain of contractors, freelancers, and all temporary workers complies with UK tax law and HRMC legislation. To view our FCSA accreditation, please click here.
Umbrella Company UK is proud to be accredited by the FCSA. Our FCSA accreditation is the perfect way to prove our commitment to compliance within our industry. To attain FCSA accreditation, companies must undergo strict audits and assessments to prove they operate ethically and compliantly. All the information gathered is shared with HMRC. Our clients are in the safest hands and can be assured they’re paying the correct amount of tax and National Insurance Contributions.
SafeRec
Umbrella Company UK is delighted to be a SafeRec Certified umbrella company. We always go above and beyond to ensure we operate in accordance with HMRC legislation and regulations. We also believe this certification provides increased value and transparency to every contractor using our umbrella service. To view our SafeRec certification, please click here.
Powered by AI, SafeRec’s auditing software audits umbrella companies to ensure there are no signs of malpractice and checks that the payslips have been processed per UK tax law and HMRC regulations. SafeRec provides contractors with complete peace of mind that they are being paid compliantly as it is the only software available that can instantly identify if a worker is being paid non-compliantly. If SafeRec finds anything suspicious, it will instantly notify the entire supply chain (the contractor, the agency/end client and the umbrella company).
As a SafeRec-certified umbrella company, every payslip we generate is audited in real-time, and all payments are individually cross-referenced with RTI sent to HMRC. Every time we process the payroll of an Umbrella Company UK employee, they will be emailed a payslip audit report from Payslip Buddy (the auditing platform provided by SafeRec), allowing them to check that they’ve been paid correctly. Payslip Buddy is free of charge for all Umbrella Company UK employees.
More information about SafeRec and its benefits to contractors and freelancers is available here.
Umbrella Company UK is FCSA-accredited and SafeRec Certified
If you are looking for a compliant umbrella company, look no further. Since launching in 2019, we have helped hundreds of contractors and freelancers get paid compliantly each week. As part of our umbrella service, you can benefit from the following:
- FCSA accredited and SafeRec Certified
- Ongoing support from our Onboarding and Customer Service Team
- Access to My Digital, our umbrella payroll app
- £25 million insurance cover
- Same Day Faster Payments
- Employee benefits such as Sick Pay and Maternity/Paternity Pay
- There is no tie-in period and no hidden costs
- Minimal ongoing administration
- Salary sacrifice service – more information available here
Registering with Umbrella Company UK is easy, and we’re here to support you every step of the way. To get started, please call our friendly Sales Consultants on 01707 669023 or complete the short registration form online. Alternatively, you can request a callback for a time that suits you, and a member of the team will contact you to discuss our umbrella service with you.
