HMRC July 2025 Update: Five More Umbrella Companies Named for Suspected Tax Avoidance
HMRC has added another five businesses to its list of named tax avoidance schemes, promoters, enablers and suppliers, bringing the total named in 2025 to over 25. The July 2025 update, published on 31 July, includes several umbrella companies suspected of promoting non-compliant pay arrangements—often involving disguised remuneration or mini umbrella practices.
The companies added in July 2025:
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Fortunes Payroll Ltd
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T.U Pay Limited
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Umbrella Contracts Limited
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Evolve Payroll Ltd
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Modus Umbrella Limited
These businesses are now listed on the official HMRC register, which is updated regularly to help contractors, agencies and clients steer clear of high-risk providers.
Why these names matter
Being named by HMRC does not automatically mean a company has broken the law, but it does mean HMRC believes they are involved in schemes designed to avoid Income Tax or National Insurance.
Most of the schemes flagged involve:
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Split-pay models (e.g. loan payments disguised as income)
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Non-PAYE payment structures
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Unlawful salary sacrifice
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False self-employment arrangements
These can leave contractors liable for unpaid tax, often without realising they’ve done anything wrong. Some agencies may also be held responsible under the new Finance Bill 2025 rules.
What contractors should do now
If you’re currently using any of the umbrella companies listed above—or have done so in the past 12 months—HMRC strongly advises that you:
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Stop using the provider immediately
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Seek independent advice from a qualified tax expert
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Check for disguised remuneration or artificial arrangements in your payslips
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Report the scheme to HMRC, if appropriate
You can also use the Contractor Check tool from SafeRec or speak to a FCSA-accredited umbrella company to switch to a compliant provider.
What agencies and end clients need to know
From April 2025, the onus has shifted: if you refer a contractor to a non-compliant umbrella and tax goes unpaid, you could be held financially responsible.
Agencies and end clients should:
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Cross-reference umbrellas against HMRC’s live list each month
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Avoid any providers not offering transparent PAYE payslips
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Ask for evidence of SafeRec or FCSA compliance
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Take action quickly if a supplier is named by HMRC
With the government cracking down harder than ever, turning a blind eye is no longer an option.
The bigger picture: monthly enforcement continues
HMRC has now named 15+ umbrella-related schemes in the last three months alone. This shows an increased pace of enforcement, particularly against disguised remuneration models used to undercut compliant providers.
July’s additions follow earlier updates in:
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June 2025, which saw Arrow Tree Consulting Ltd, Head Restart Ltd and others added
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May 2025, where two mini umbrella arrangements were flagged for avoiding NI
Each listing stays online for at least 12 months, unless legally challenged or corrected.
How to protect yourself
Whether you’re a contractor, recruiter or client, here’s how to avoid non-compliant umbrella companies:
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Check the HMRC list monthly: See the official register
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Ask the right questions: Is 100% of pay taxed via PAYE? Are payslips clear? Are taxes deducted?
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Use accredited providers: Stick to FCSA or Professional Passport members with visible audits
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Avoid red flags: Loans, advances, net pay higher than gross pay, unclear deductions, etc.
We regularly update our list of recommended umbrella companies to reflect changes in compliance and HMRC activity.
Final thoughts
The July 2025 update is another warning shot for contractors and agencies alike: check who you’re working with, and don’t assume the umbrella company you’ve used for years is still safe.
As always, if you’re unsure about your current setup or need help finding a reliable umbrella, we’re here to help.
