Since we last reported, HMRC has updated its list of named tax avoidance schemes, promoters, enablers and suppliers. The newest additions are Novus Consultants Limited, Paybox Umbrella Limited, Saxonside Limited and T2 Outsourcing Limited. Keep reading and find out more about these unethical payroll providers and HMRC’s description explaining why you shouldn’t engage with them.
Newly named tax avoidance schemes by HMRC
Updated on 7 July 2022, HMRC has named a selection of newly identified tax avoidance schemes. Stakeholders have welcomed this open approach of naming and shaming unethical payroll providers within the sector. Hopefully, it will help contractors and freelancers avoid companies that could land them in trouble with HMRC. Below is more information HMRC shares about the newly named tax avoidance schemes, promoters, enablers and suppliers – Novus Consultants Limited, Paybox Umbrella Limited, Saxonside Limited and T2 Outsourcing Limited.
Novus Consultants Limited (formerly Novus Limited) (NOL) / Contractor Corner Accounting Limited (CCA)
- Promotor of Scheme: Novus Consultants Limited
- Address: Novus Consultants Limited (formerly Novus Limited): 1st floor, Queen Victoria House, Victoria Street, Douglas, IM1 2LF, Isle of Man / Contractor Corner Accounting Limited: Suite 1, Plymouth House, Plymouth Road, Blackpool, FY3 7JS, England
- Publication Date: 7 July 2022
- Scheme Reference Number (SRN) and date it was allocated: 69140374, 4 April 2022
- HMRC’s Scheme Description: “Schemes users sign an employment contract and a ‘Commercial Loan Agreement’ (CLA) with NOL. The user will be paid a salary based on National Minimum Wage (NMW) that is taxed, and a second payment that is not taxed under the CLA. NOL retains around 20% of the gross contract earnings.”
- More information about Novus Consultants Limited.
Paybox Umbrella Limited
- Promotor of Scheme: Paybox Umbrella Limited (UK-based) (PUL UK) / Paybox Umbrella Limited (Malta based) (PUL Malta)
- Address: PUL UK: Building 3, City West Business Park, Gelderd Road, Leeds LS12 6LN / PUL Malta: Vincenti Buildings, 28/19 (suite no 1862), Strait Street, Valletta, Malta
- Publication Date: 7 July 2022
- Scheme Reference Number (SRN) and date it was allocated: 33560979, 5 April 2022
- HMRC’s Scheme Description: “Scheme users enter into an employment agreement with PUL Malta. Users receive two payments from PUL Malta, one paid at National Minimum Wage (NMW) rate and a second payment which is not declared for tax.”
- More information about Paybox Umbrella Limited.
Saxonside Limited
- Promotor of Scheme: Saxonside Limited (SAX)
- Address: Centaur House, Ancells Road, Fleet, GU51 2UJ
- Publication Date: 29 June 2022
- Scheme Reference Number (SRN) and date it was allocated: 92439361, 6 April 2022
- HMRC’s Scheme Description: “Users enter into an agreement to Grant an Option, called the Option Grant Agreement. After the payment of National Minimum Wage (NMW), SAX pays the balance to the user as payment for the grant of an option. These are paid in one aggregate payment. This secondary element of the payment as shown on the Option Grant note is not subject to tax and National Insurance Contributions (NICs). The aggregate payments amount to around 80-85% of the expected gross contract earnings.”
- More information about Saxonside Limited.
T2 Outsourcing Limited
- Promotor of Scheme: T2 Outsourcing Limited (T2)
- Address: Unit 5, Connect Business Village, Derby Road, Liverpool, L5 9PR
- Publication Date: 7 July 2022
- Scheme Reference Number (SRN) and date it was allocated: 28632053, 27 April 2022
- HMRC’s Scheme Description: “The scheme user enters an employment contract with T2 who make composite payments to the scheme users for services provided by the user. The first element is a National Minimum Wage (NMW) salary that is subjected to tax and National Insurance Contributions (NICs), and a secondary element described as an “advance drawdown” which is not.”
- More information about T2 Outsourcing Limited.
The schemes identified by HMRC before July’s update
In a previous article entitled ‘HMRC Name And Shame Three Tax Avoidance Schemes’, we summarised the newly unveiled tax avoidance schemes, promoters, enablers and suppliers announced by HMRC.
The companies previously listed by HMRC before July’s update are stated below (Saxonside Limited were added on 29 July 2022):
Peak PAYE Limited
- Promotor of Scheme: Peak PAYE Limited (PEAK)
- Address: 86-90 Paul Street, London, EC2A 4NE
- Publication Date: 8 June 2022
- Scheme Reference Number (SRN) and date it was allocated: 20510783, 7 February 2022
- HMRC’s Scheme Description: “Users enter into an Agreement to Grant an Option, called the Option Grant Agreement with PEAK. After the payment of National Minimum Wage (NMW), PEAK pays the balance to the user as payment for the grant of an option. These are paid in one aggregate payment. This secondary element of the payment as shown on the Option Grant note is not subject to deductions of tax and National Insurance Contributions (NICs). The aggregate payments amount to around 80-85% of the expected gross contract earnings.”
- More information about Peak PAYE Limited.
More information – the list is being updated frequently by HMRC
HMRC regularly updates the list of tax avoidance schemes on the government’s website. We’ve created a list of the named and shamed tax avoidance schemes and have more information about each one. Check it out.
Top 10 umbrella companies
If you’re looking for an umbrella company you can trust – you have come to the right place. We have collated a list of our top 10 umbrella companies, and they’re all accredited by either the Freelancer & Contractor Services Association (FCSA) or Professional Passport. And some of our top 10 have special offers at the moment.
