On Thursday, 20th April 2023, HMRC added two companies to its list of named tax avoidance schemes, promoters, enablers and suppliers – Acacia Resourcing Services Limited and Marquee Limited. Please keep reading for more information about these two companies, including why HMRC deem them non-compliant.
HMRC is continuing to update its list of named tax avoidance schemes, promoters, enablers and suppliers, but they are also removing companies from it too
When HMRC introduced its Corporate Report entitled ‘Current list of named tax avoidance schemes, promoters, enablers and suppliers’, it was welcomed by temporary workers, staffing agencies and legitimate payroll providers. The list consists of names of unethical companies on HMRC’s radar and explains how they work and when they were first issued a scheme reference number.
However, recently, HMRC removed a couple of businesses from their list of named tax avoidance schemes, promoters, enablers and suppliers, much to the surprise and disappointment of sector stakeholders.
Julie Kermode, CEO at IWORK, recently described HMRC’s tax avoidance list as a “farce”. Despite regularly commenting online about the benefits of the list, Kermode explained why IWORK are “u-turning” their view on the list.
In an article on IWORK, Kermode said:
“We have just learned that details of the first named schemes have now been removed as it’s 12 months since they were published. This is in line with the requirements of the Finance Act 2021.
This means that known tax avoidance scheme promoters are only ever listed for one year, after which point they are removed and free to continue trading in the same guise. It also means that HMRC’s list will never be comprehensive and therefore never useful no matter how many schemes are added, because there will always be a continual cycle of old ones being removed.
We have tried really hard to support HMRC with this initiative because we believed in the long term potential for it to be effective. However we were wrong; it is actually a farce.”
Fred Dures, founder of umbrella payroll and auditing company PayePass, described HMRC’s decision to remove two companies as “laughable”. In an article on ComputerWeekly, Fred Dures said:
“The government has only been naming and shaming these schemes for one year. Fast forward a few weeks and months and, at this rate, the list will continue to shrink. It’s one step forward, two steps back – a farcical loophole.”
Interestingly, an HMRC spokesperson has replied to the claims above. In a statement to ComputerWeekly, the spokesperson said:
“We ensure that all aspects of our promoter naming complies with the relevant legislation, including removing scheme names one year later in line with Finance Act 2021.”
“Naming schemes has had a disruptive effect on promoters of tax avoidance. Schemes can also be named under Finance Act 2022 and details can stay online beyond 12 months. This will continue to warn taxpayers, so that they can steer clear of them.”
For more information about the two companies removed from HMRC’s list, please visit the following article on the IWORK website: Two Avoidance Schemes Named by HMRC.
Which companies have recently been added to the list, to remove the two removed by HMRC?
Two new tax avoidance schemes, promoters, enablers and suppliers were added to HMRC’s list on the 20th April 2023 – Acacia Resourcing Services Limited and Marquee Limited. Please keep reading for more information about these two organisations, including their official name, address, Scheme Reference Number (SRN) and HMRC’s description of why they are non-compliant.
Acacia Resourcing Services Limited
- Promoter of Scheme: Acacia Resourcing Services Limited (Acacia)
- Address: Stanmore House, 64-68 Blackburn Street, Manchester M26 2JS (former address: 3rd Floor, 1 Mann Island, Liverpool L3 1BP)
- Publication Date: 20 April 2023
- Scheme Reference Number (SRN) and date it was allocated: 22956273, 18 August 2022
- HMRC’s Scheme Description (summary): “Users sign an employment contract with Acacia that says they will be paid at least the National Minimum Wage (NMW). Users also enter into an Option Grant Agreement with Acacia. Users submit timesheets to Acacia who invoice the end client or agency for the services the user has provided. Users are then paid a salary around NMW. After deducting an umbrella margin/administration charge and an additional fee in the region of 15%, Acacia pay the balance to the user, and this is supposedly for the grant of an option. This payment is claimed to be a capital payment and no tax or National Insurance is deducted.”
- For more information, please click here.
Marquee Limited
- Promoter of Scheme: Marquee Ltd (ML)
- Address: The Charter Building, Charter Place, Uxbridge UB8 1JG
- Publication Date: 20 April 2023
- Scheme Reference Number (SRN) and date it was allocated: 69751629, 2 November 2022
- HMRC’s Scheme Description (summary): “The arrangements involve users providing their services to end clients through Marquee Limited (ML). The users also sign an option grant agreement under which ML makes payments to users and users grant the right to ML, which if exercised, requires users to enter into an annuity agreement. The result is the remuneration for their services is artificially separated into a salary and payments made under the option grant agreement said to be in return for the option. No tax or National Insurance contributions are deducted in relation to the payments made under the option agreement.”
- For more information, please click here.
Top 10 umbrella companies
If you are looking for a compliant umbrella company you can trust with your PAYE payroll, you have come to the right place. To help make your search easier, 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. Some of the top 10 have special offers on at the moment.
