Spotlight

Two Avoidance Schemes Named by HMRC

HMRC has used new powers for the first time to name two tax avoidance schemes that target contractors, and anyone using these schemes could end up with a large tax bill.

The 2 named schemes are:

  • Absolute Outsourcing, of Foerster Chambers, Todd Street, Bury, Greater Manchester
  • Equity Participation Scheme (EPS), promoted by Purple Pay Limited (PPL), of Gracechurch Street, London.

Both schemes involve individuals agreeing an employment contract and working as a contractor. The schemes pay contractors the National Minimum Wage with the remainder of their wage paid through a loan to try to avoid National Insurance and Income Tax.

This is the first time HMRC has used new powers to name tax avoidance schemes and their promoters as part of a campaign to warn the public not to get caught up in tax avoidance.

If you are using one of these schemes you should seek professional advice that is specific for your situation.

About the author

Share this post

Sign up to our Newsletter

Follow IWORK on social

Subscribe to our Podcast

Latest Articles

News

Umbrella Company Loses £11m Tax Tribunal

A tax tribunal has concluded that an umbrella company has a potential £11m liability due to their overarching contract not being one of employment.  The

Don't forget to sign up to our newsletter

As we grow our community we want to ensure that we develop the best services for you specifically. It will really help us if you could answer two very quick questions:

Subscribe to Podcast Series

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

All About Self Employment

Empowering Agency Workers

Submit Review