On the 19th of January 2023, the government added five umbrella companies (or payroll providers) to its list of named tax avoidance schemes, promoters, enablers and suppliers – Able Ltd, AML Tax (UK) Limited, Contractor Central Accounting Ltd, Denmedical UK Limited and Tailored UK Services Ltd. Keep reading for more information.
Able Ltd / Contractor Central Accounting Ltd (CCAL)
- Promotor of Scheme: Able Ltd (incorporated in Isle of Man) / Contractor Central Accounting Ltd (CCAL)
- Address: Able Ltd: 2nd Floor, Queen Victoria House, Victoria Street, Douglas, Isle of Man IM1 2LF / Contractor Central Accounting Ltd (CCAL): The Axis Building Maingate, Team Valley Trading Estate, Gateshead, England NE11 0NQ
- Publication Date: 19 January 2023
- Scheme Reference Number (SRN) and date it was allocated: 33669539, 10 June 2022
- HMRC’s Scheme Description (summary): “Scheme user signs an employment contract and a “Commercial loan Agreement” with Able, an umbrella company registered in the Isle of Man. CCAL, a UK based company, provides onshore support to Able. The user will submit timesheets to CCAL for the work they do for an end client /agency. CCAL will invoice the end client/agency for the user’s work and take receipt of payment from them. CCAL will transfer the payment to Able who then makes a salary payment to scheme users at a rate equivalent to the National Minimum Wage which is taxed, and a second payment, described as a loan, without tax and National Insurance contributions deducted.“
- For more information, please click here.
AML Tax (UK) Limited – Annuity Arrangements
- Promotor of Scheme: Annuity Arrangements
- Address: 1st Floor, Blackfriars House, Parsonage, Manchester M3 2JA
- Publication Date: 19 January 2023
- Scheme Reference Number (SRN) and date it was allocated: 10 May 2022
- HMRC’s Scheme Description (summary): “There is usually a pre-existing loan between a director/shareholder (the ‘scheme user’) and their company. The user signs an ‘option agreement’ with the company. In return for signing the option agreement, the company releases the user from their obligation to repay the loan. The “option” enters the user into an annuity agreement with the company, under which the user is required to pay an annuity to the company for life, if exercised. However, an “early encashment” mechanism within the annuity agreement enables the company to cancel its option rights for a nominal fee. The company will usually cancel the option so that the scheme users do not pay the annuity or loan repayment. Therefore, the company does not pay Corporation Tax on the loan.”
- For more information, please click here.
Denmedical UK Limited / AML Tax (UK) Limited (AML)
- Promotor of Scheme: AML Tax (UK) Limited (AML) / Denmedical UK Limited
- Address: 1st Floor Blackfriars, Parsonage, Manchester M3 2JA (address same for both promoters / suppliers)
- Publication Date: 19 January 2023
- Scheme Reference Number (SRN) and date it was allocated: 15062269, 18 July 2022
- HMRC’s Scheme Description (summary): “AML Tax (UK) Limited and Denmedical UK Limited promote the same scheme. A limited company splits the services provided by its director (the ‘scheme user’) into ‘fiduciary services’ and ‘consultancy services’. An offshore company contracts with the scheme user to supply their consultancy services to the limited company via the offshore company. The scheme user also signs a loan agreement with the offshore company in their capacity as trustee of a linked benefit trust. The scheme user is paid a notional salary from the limited company for fiduciary services, a loan from the linked trust and a notional retainer payment from the offshore company. The retainer payment and loan are both claimed to relate to ‘self-employed consultancy services’. The loan is made without Income Tax or National Insurance contributions deducted.”
- For more information, please click here.
Tailored UK Services Ltd
- Promotor of Scheme: Tailored UK Services Ltd (TUSL), trading as Tailored Resourcing
- Address: 67 Grosvenor Street, Mayfair, London W1K 3JN (former address – Nova South 9th Floor, 160 Victoria Street, London SW1E 5LB)
- Publication Date: 19 January 2023
- Scheme Reference Number (SRN) and date it was allocated: 68185484, 8 August 2022
- HMRC’s Scheme Description (summary): “Scheme users enter into an employment contract and a loan agreement with TUSL, providing their services to end clients, (sometimes through a recruitment agency). The employment contract provides that TUSL will pay the user a National Minimum Wage rate. The loan agreement with TUSL (Advance Deed) provides that TUSL will make an initial advance of up to £5,000 and further advances to the employee as they may think fit (Advance Payments). The Advance Payments are supposedly repayable within 18 months after receipt of the initial advance, but they are not repaid. TUSL invoices the recruitment agency or end client for the services carried out by the scheme users and retains between 10% to 12% of the invoiced amount, as their fee. Scheme users are then paid a salary with tax and National Insurance contributions (NICs) deducted, plus another payment under the “advance deed” without deduction of Income Tax or NICs.”
- For more information, please click here.
Find out more
For more information, please visit the official guide on the government’s corporate report: Current list of named tax avoidance schemes, promoters, enablers and suppliers.
We have also collated information on the tax avoidance schemes to make it easier for our readers to keep up to date. Please visit: HMRC named and shamed tax avoidance schemes.
Before choosing an umbrella company, conduct thorough due diligence to ensure you register with a compliant umbrella company. Never use a tax avoidance scheme.
Top 10 umbrella companies
If you’re looking for a trustworthy and compliant umbrella company, you have come to the right place. We have collated a list of our top 10 umbrella companies, and they’re accredited by either the Freelancer and Contractor Services Association (FCSA) or Professional Passport. Please check them out because some of the top 10 umbrellas have special offers at the moment.
