HMRC warns against schemes that sells future business revenues to a revenue service trust

HMRC has warned against participating in an arrangement which involves selling future business revenues to a revenue service trust.  Basically, this is another mechanism of disguising your remuneration as something else, and you can read more about this type of scheme here.

Under the agreement the trust becomes entitled to a percentage of the business’s future revenue, and as the business no longer holds this revenue it isn’t included in it’s taxable profit, so no tax is paid on it.  The business could be a self-employed individual, a partnership or a company.

Once the revenue has been transferred, the trust will take one of two routes:

  • Transfer the revenue to a personal management company controlled by the business owner.
  • Send the revenue directly from the trust to the business owner, labelling the funds as “loans” or “fiduciary receipts”, i.e. labelling as something non-taxable.

The transfer of funds is not disclosed to HMRC.

HMRC have stated that they will challenge anyone using these arrangements and anyone promoting them.  You can read their full Spotlight here.

If you think you might be involved in such a scheme, please seek specialist advice.  We can recommend firms that can assist, just email for help.

About the author

Share this post

Sign up to our Newsletter

Follow IWORK on social

Subscribe to our Podcast

Latest Articles


Our Opinion On Latest Umbrella Exposé

There has been another exposé of alleged poor practices taking place at an umbrella which has been accredited by an industry body.  Our founder, Julia

Don't forget to sign up to our newsletter

Subscribe to Podcast Series

Subscribe to our Podcasts through Apple Podcasts by following the links below:

All About Self Employment

Empowering Agency Workers

Sign up to our weekly updates by giving us your details below

Submit Review