HMRC August 2025 Update: Four More Companies Named for Suspected Tax Avoidance
HMRC has once again expanded its list of named tax avoidance schemes, adding four more companies in the August 2025 update. These businesses are suspected of running non-compliant umbrella arrangements that put contractors, recruitment agencies, and end clients at financial risk.
Which companies were added in August 2025?
The following businesses have now been named:
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Pay APL Limited
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AIT Umbrella Limited
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Real Payments Limited
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Regis Limited (incorporated in the Isle of Man)
These companies are suspected of operating disguised remuneration models, often involving two-part payments where only a portion of income goes through PAYE, while the remainder is presented in a way HMRC considers tax avoidance.
Why being named by HMRC is serious
When HMRC adds a company to its avoidance list, it signals a high level of concern. While being listed is not the same as a guilty verdict, it means HMRC believes the business is promoting schemes designed to avoid Income Tax and National Insurance.
Contractors using these models may still be liable for unpaid tax, interest and penalties. Recruitment agencies and end clients who refer workers to named schemes could also be held financially responsible under the rules introduced in April 2025.
What contractors should do
If you’re engaged with one of the newly named companies, HMRC recommends you take action immediately:
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Stop using the provider and switch to a compliant umbrella
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Check your payslips carefully to see if your pay was fully taxed under PAYE
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Seek independent tax advice to understand potential liabilities
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Report the scheme to HMRC if you suspect avoidance
To protect yourself, only work with trusted providers. Our guide to the Top 10 Umbrella Companies highlights fully compliant, audited umbrellas that operate transparently.
What agencies and end clients need to know
Recruitment agencies and clients can no longer ignore warning signs. HMRC has made it clear that those who facilitate or refer contractors into avoidance schemes may share liability.
To stay compliant:
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Cross-check umbrellas against the current HMRC avoidance list
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Demand clear, payslip-based PAYE deductions
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Partner only with FCSA or SafeRec-accredited providers
A continuing pattern of monthly updates
This is now the third consecutive month HMRC has added umbrella companies to the list.
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July 2025: Fortunes Payroll Ltd, T.U Pay Ltd, Umbrella Contracts Ltd, Evolve Payroll Ltd, Modus Umbrella Ltd
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June 2025: Arrow Tree Consulting Ltd, Head Restart Ltd and others
Each entry remains on HMRC’s website for a minimum of 12 months, unless successfully challenged. This approach is part of a wider clampdown on non-compliant umbrella models and disguised remuneration schemes.
Final thoughts
The August 2025 update is a clear reminder that HMRC is stepping up its enforcement against umbrella companies it believes are avoiding tax. Contractors should act quickly, agencies must tighten due diligence, and everyone in the supply chain should make compliance a top priority.
If you’re uncertain about your current arrangement, explore our Top 10 Umbrella Companies to find a trusted provider that pays correctly through PAYE.
