HMRC has added another new company to its list of tax avoidance schemes – which now consists of over 30 companies. We PAYE Umbrella Limited is the latest to make the list. Keep reading to learn more about We PAYE Umbrella Limited and why HMRC considers them non-compliant.
We PAYE Umbrella – an overview
The following information has been taken from the government website and provides an overview of We PAYE Umbrella Limited and why HMRC has labelled it a tax avoidance scheme.
- Promotor of Scheme: We PAYE Umbrella Limited (WPUL) (formerly I Paye Umbrella Limited)
- Address: Scottish Provident Building, 7 Donegall Square West, Belfast BT1 6JH (former address: 138 University Street, Belfast, Co. Antrim, Northern Ireland BT7 1HH)
- Publication Date: 3 November 2022
- Scheme Reference Number (SRN) and date it was allocated: 96254839, 28 January 2022
- HMRC’s Scheme Description (summary): “Users of the scheme would receive their gross contract value in 2 separate payments. The first element was a salary paid via WPUL. This was generally paid at National Minimum Wage (NMW) rate. The second payment was in the form of a loan. It did not go through PAYE and this payment was not taxed.”
- For more information about named tax avoidance schemes, please visit: HMRC named and shamed tax avoidance schemes.
We PAYE Umbrella Limited – the payroll process
According to HMRC’s guidance, workers who were paid by We PAYE Umbrella Limited were done so as follows:
- Scheme users would have signed an employment contract and a Revolving Line of Credit Agreement, similar to a Loan Agreement.
- We PAYE Umbrella Limited (WPUL) invoiced the employment agency or end users for the work carried out by the scheme users.
- WPUL deducted its fee from the gross amount.
- WPUL made one payment to the user equalling National Minimum Wage. WPUL operated PAYE on that payment.
- WPUL made a second payment to the user on the same day for the remaining balance as a loan that was not taxed. This was under a Revolving Line of Credit Agreement.
For more information on We PAYE Umbrella Limited and the other tax avoidance schemes named by HMRC, please read the government’s corporate report entitled: Current list of named tax avoidance schemes, promoters, enablers and suppliers.
Top 10 umbrella companies
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