Contractorcare Limited

Promotor of Scheme: Contractorcare Limited (CCL)
Address: 24/25 The Shard, 32 London Bridge Street, London SE1 9SG
Publication Date: 18 August 2022
Scheme Reference Number (SRN) and date it was allocated: 39607199, 14 February 2022
HMRC’s Scheme Description: “Schemes users will sign a contract of employment along with a ‘Master Advance Agreement’. The intention of the scheme is the user will be paid a salary equivalent to that of National minimum wage (NMW) and an un-taxed payment called an advance, meaning scheme users retain up to 84% of the expected gross contract earnings.”

Contractorcare Limited – more details

The HMRC website states the scheme operates as follows:

Scheme users enter into an Employment Contract with Contractorcare Limited (CCL). This provides that the “employee” will be paid for time worked at the pay rate equivalent to the NMW and a commission in accordance with the Commission Plan referred to at Schedule 1 of the contract.
Scheme users enter into a ‘Master Advance Agreement’ with CCL who are the sole trustee of a settlement known as the ‘CCL Settlement’. This provides that CCL will make an initial advance and further advances to the Scheme user. Each advance is repayable on its thirtieth anniversary and is interest free until due for repayment or interest is demanded by CCL.
Scheme users submit timesheets and CCL invoices the agency or end client for the work done by the scheme user to receive payment from the end client. The invoices reflect the agreed contract value for services of the scheme user.
CCL retains around 18% of the amount invoiced to the agency or end client. The remaining balance is paid to the scheme user in 2 ways:
- a salary payment based on NMW through the payroll; and
- the ‘advance’ which is not paid through the payroll and made without deductions of income tax and National Insurance Contributions.

Please click here to go back to the full list of tax avoidance schemes named and shamed by HMRC.