The HMRC has named another Umbrella company who is promoting tax avoidance schemes that they claim don’t work!
Solucionis claims to be ‘An Umbrella Company That Suits Your Work Style’, or maybe not.
Solucionis also claims to offers ‘hassle-free umbrella services that take all of the paperwork and admin stress away from you’, or maybe it will give impacted employees of the umbrella lots of hassle and stress and some significant tax debt.
How the scheme is claimed to work?
The HMRC state that remuneration for the scheme users’ services is artificially separated into two elements. The first is a salary with tax and National Insurance (NICs) deducted. The second is purported to be either for the growth in a share in an Isle of Man cell company, or for an option grant, with no tax and NICs deducted.
HMRC’s view is that these payments are actually no different to normal income, and tax and National Insurance contributions are payable. They have previously published information on Umbrella companies offering to increase your take home pay (Spotlight 45).
HMRC are aware that some umbrella companies operate more than one scheme, e.g. a standard compliant scheme and one or more non-compliant schemes. They advise employees of Solucionis to familiarise themselves with the guidance and to satisfy themselves that the correct amount of tax is being deducted on their income.
What should I do if involved in this or other similar avoidance schemes?
If you are involved in this scheme or other tax avoidance schemes and are not already talking to HMRC about your tax position you should contact HMRC as soon as possible. Want to know more information about how to do this?. You can also report a tax avoidance scheme to HMRC.
There are other schemes, promoters, enablers and suppliers that HMRC cannot publish information about at this time. This may be because:
- HMRC is gathering information about the promoter, enabler, supplier or avoidance schemes being marketed
- HMRC is considering representations from a promoter, enabler or supplier
- the appeal period for not withdrawing a stop notice has not ended
- HMRC is not aware of the tax avoidance scheme, promoter, enabler or supplier
If a tax avoidance scheme is not named, this does not mean that the scheme works or is in any way approved by HMRC.
Current list of named tax avoidance schemes, promoters, enablers and suppliers
PAYadvice.UK 27/4/2028