Accent Umbrella Ltd (AUL) has been named by HMRC as a promoter of tax avoidance schemes.
Please be cautious following advice from these entities about joining other umbrella companies. We advise users of this scheme to contact us to get help to exit
HMRC
Accent Umbrella advertised itself as ‘the perfect compliment to your work life. Accent provide compliant & efficient services for UK contractors’.
They claimed to have ‘100% compliance. You will be paid via PAYE and all Tax and National insurance will be paid direct to HMRC’. Yes claimed to provide services to over 1,200 contractors and over 87 agencies.
HMRC beg to differ, naming the organisation as a non-compliant promoter of tax avoidance. So not so compliant and efficient.
Named by HMRC on Thursday 9th May 2023 – Some employees of AUL receive their remuneration made up of two elements. The first element is a salary in line with National Minimum Wage rates that has Income Tax and National Insurance Contributions (NICs) deducted. However, the second element has no Income Tax and NICs deducted.
HMRC’s view is that both elements of the payment should be treated as ‘normal income/as the user’s salary’, and therefore subject to Income Tax and NICs. HMRC have previously published Spotlight 60 on Disguised remuneration schemes involving agency workers and contractors employed by umbrella companies.
HMRC are aware that some Umbrella Companies operate more than one scheme, for example a standard compliant scheme and a non-compliant scheme. The AUL website shows examples of contractors working in the medical and tech sectors.
HMRC advise employees of AUL to familiarise themselves with the guidance and to satisfy themselves that the correct amount of tax is being deducted on their income.
HMRC also advise employees to be cautious of following advice from published promoters to join other umbrella companies as in its first month of operation 100% of the employees of AUL had previously been employed by a previously named and published tax avoidance promoter.
Other named avoidance schemes over the past few months (some with STOP notices) are:
- Acacia Management Services Limited
- Alphasaint Ltd
- Canopaye Limited
- Contractor Bureau Limited
- Contractorcare Ltd
- Flex Payroll and Accounting Services Ltd
- PAYEme Ltd
- Paystone Services Limited
- Procorre LLP
- React Administration Services Limited
- Solucionis Ltd
- Ultra Employment Ltd
- Worx 4U Limited
If you’re involved in a tax avoidance scheme
If you’re worried about becoming involved in a tax avoidance scheme, or think you’re already involved and want to get out of one, HMRC claim they are there to help.
If you’re using any of these schemes or others that have been named or similar schemes, HMRC strongly advises you to withdraw from them and settle your tax affairs to prevent building up a large tax bill.
If you’re already speaking to someone in HMRC about your use of a tax avoidance scheme, you should contact them to discuss this further.
If you do not have an HMRC contact and you want to get out of a tax avoidance scheme, then contact
Report a tax avoidance scheme to HMRC
You can also report tax avoidance schemes and those offering you the schemes to HMRC. You can do this by using the report tax fraud or avoidance online service.
You can submit this form anonymously. You do not have to give your name, address or email.
PAYadvice.UK 10/5/2024