Focus Contractor Limited

• Promotor of Scheme: Focus Contractor Limited (FCL)
• Address: Quatro House Lyon Way, Frimley, Camberley GU16 7ER
• Publication Date: 29 September 2022
• Scheme Reference Number (SRN) and date it was allocated: 04914216, 4 July 2022
• HMRC’s Scheme Description (summary): “Users enter into an employment contract with FCL which stipulates the employee will work on client assignments and will be paid at least the National Minimum Wage (NMW). Users also enter into an agreement to Grant an Option (the Option Grant Agreement). FCL retains between 15% and 21% of the gross contract value invoiced to the agency or end user for the services carried out by the users. FCL pays the scheme users the remaining balance, via a combination of a NMW salary and an untaxed amount, supposedly made as payment for the grant of an option to users.”

Focus Contractor Limited – more details

The HMRC website states the scheme operates as follows:

1. Users enter into an employment contract with Focus Contractor Limited which stipulates the employee will work on client assignments and will be paid at least the National Minimum Wage (NMW). Users also enter into an agreement to grant an option (the Option Grant Agreement).
2. Users are required to grant the option only after receiving a “further consideration” of £1000 from FCL. The users, referred to as the “obligor” are required to pay an annuity to FCL if the option is exercised.
3. FCL, as the “grantee”, agrees to make payments to the users as consideration for receipt of the grant. These payments are claimed to be capital payments and not subject to deductions of tax or National Insurance contributions.
4. Users submit timesheets and FCL subsequently invoices the agency or end client for the work done in order to receive payment from the agency or end client.
5. FCL retains between 15% and 21% of the gross contract value invoiced to the agency or end user for the services carried out by the users. FCL pays the users the remaining balance, via a combination of a NMW salary and an untaxed amount, supposedly made as payment for the grant of an option to users.
6. The aggregate payments amount to around 80 to 85% of the expected gross contract earnings.

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