HMRC named and shamed tax avoidance schemes
HMRC has named several tax avoidance schemes that contractors and freelancers should avoid at all costs. In this section of our website, we’ve listed each company that HMRC has named. If you click on the company name, you will find more information about that specific tax avoidance scheme and helpful links to the government’s website.
- These are just some of the many tax avoidance schemes targeting contractors and freelancers in the UK.
- HMRC is frequently updating the list below. For the latest list, check the page on the government’s website entitled: Current list of named tax avoidance schemes, promoters, enablers and suppliers.
- Engaging with a tax avoidance scheme could land you in serious trouble. You could face a huge tax and National Insurance bill from HMRC for the outstanding amounts you’re deemed to owe. You could also face additional penalties.
- HMRC urge you to contact them to settle your tax affairs if you think you’ve engaged with a tax avoidance scheme – whether deliberately or by mistake. You can contact HMRC regarding the use of a tax avoidance scheme here. You can also report a suspected tax avoidance scheme here.
- Compliant umbrella companies will pay you with HMRC’s tax system – Pay As You Earn (PAYE).
- Always carry out thorough due diligence when choosing a payroll provider. Using an umbrella with accreditation from either Professional Passport or the Freelancer and Contractor Services Association (FCSA) is a good idea. These are the two most respected self-regulatory bodies ensuring the supply chain of temporary workers is compliant with UK tax law.