HM Revenue and. Customs have used their powers to name another promoter of tax avoidance that does not work on Tuesday 2nd August 2023.
Apricot Umbrella Ltd (of Canterbury and associated with ADYE Ltd of Cyprus) has been listed as a promoter of a tax avoidance scheme.
HMRC urge anyone using this umbrella company to make contact to get help to exit the scheme.
Apricot Umbrella Limited / ADYE Ltd
The arrangements involve individuals providing their services to end clients or agencies through Apricot Umbrella Limited (AUL) and entering into an agreement where individuals grant ADYE Ltd a right to enter an Annuity Agreement in exchange for payments (the ‘Grantee Payments’).
The individuals receive payment from AUL, however, tax and National Insurance contributions (NICs) are only deducted on a small part of the amount. This is evidenced on the payslips and figures reported to HMRC.
It is HMRC’s view, that the larger amount, paid without deduction of tax and NICs was for the “Grantee Payments”, but is paid by AUL on behalf of ADYE Ltd. It is also HMRC’s view that the “Grantee Payments” were additional disguised income for the services individuals provided through AUL, and therefore the entire payment should be subject to tax and NICs.
Countrywide Partners Ltd tax avoidance scheme named again!
Countrywide Partners Ltd has been relisted as a tax avoidance scheme. They had previously been listed under 2021 legislation but are now being relisted under 2022 legislation.
Tackling non-compliance in the umbrella company market consultation – open until 29th August 2022
The HMRC have an open consultation on tackling non-compliance in the umbrella company market. Respondents have until 29th August 2023 to share their views on government proposals to protect workers from non-compliant umbrella companies.
Following concerns raised by industry and employees, the government is consulting on potential measures to regulate the umbrella company market.
The consultation also seeks views on measures to tackle non-compliance in the sector, including mandatory due diligence.
Your input could help to protect workers from surprise future tax bills, while supporting businesses and growth in the economy. You can read more and find out how to respond on the tackling non-compliance in the umbrella market consultation