Articles and information in relation to UK Payroll for business, employers and employees.
Who are the Fair Work Agency (FWA)? The Fair Work Agency (FWA) is the nations single enforcement body for major employment rights, launched on 7th April 2026. One of its opening priorities is policing and enforcement of National Minimum Wage (which also includes the Hational Kiving Wage). An area of concern are umbrella deductions and … Continue reading Minimum Wage Enforcement and Umbrella Deductions
HM Revenue and Customs (HMRC) has seen an increase in attempts to use ‘Bills of Exchange’ to pay a tax liability. HMRC are aware that there are promoters, particularly in the recruitment and temporary labour sector, marketing their use. Organised Crime Groups are also particularly active in these sectors. HMRC have set out their position … Continue reading Tax fraud warning: ‘Bills of Exchange’
Over 15 million people across the UK are expected to benefit as New laws bring the world of work into the 21st century Over 15 million people across the UK are to benefit from new worker protections, including those on the lowest pay and in the most insecure jobs. New rights confirmed including day one paternity leave and parental leave, statutory sick pay, protections for pregnant workers, increased protection from unfair … Continue reading Employment Rights Act receives Royal Assent
As part of the December 2025 Employer Bulletin, information on Labour supply change responsibilities have been issued: From 6th April 2026, significant changes to PAYE responsibilities will come into effect for labour supply chains, that include umbrella companies. An agency or end client are responsible for making sure PAYE is operated correctly when an umbrella company employs their workers. … Continue reading New PAYE responsibilities in labour supply chains – Umbrellas
HMRC publishes the Employer Bulletin 6 times a year, giving employers and agents the latest information on topics and issues that may affect them. Some of these topics have already been covered by PAYadvice.UK in articles and blogs and further articles and blogs may now additionally be published. The December 2025 edition of Employer Bulletin … Continue reading Employer Bulletin: December 2025
What are umbrella companies? Umbrella companies are employment intermediaries that employ workers on behalf of agencies and end clients. Many umbrella companies operate diligently, supporting their employees and providing convenience and administrative benefits for agencies. Some appear to be involved in tax avoidance However, too many are used to facilitate non-compliance including tax avoidance and … Continue reading Umbrellas — rules to tackle non-compliance
The independent loan charge review and government response were published Wednesday 26th November 2025 following Budget 2025. At Autumn Budget 2024, the government committed to an independent review of the Loan Charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers. On 23rd January 2025, the Exchequer … Continue reading Independent Loan Charge review and response
HMRC is aware that businesses are being approached by organisations offering models which falsely claim to be able to reduce employment costs through ‘tax credits’ offset from third party businesses they have acquired. HMRC considers these arrangements tax evasion. HMRC is aware that businesses are being approached by organisations offering models which falsely claim to be able to reduce … Continue reading Tax fraud warning for employment agencies and employers
HMRC publishes the Employer Bulletin 6 times a year, giving employers and agents the latest information on topics and issues that may affect them. Some of these topics have already been covered by PAYadvice.UK in articles and blogs and further articles and blogs may now additionally be published. The October edition of Employer Bulletin includes … Continue reading Employer Bulletin: October 2025
HMRC have added a practicing barrister, Setu Kamal, to the HMRC tax avoidance promoters list for the first time. Practising barrister added to GOV.UK tax avoidance promoter list for the first time HM Revenue and Customs (HMRC) finds senior legal professional designed four schemes that aimed to avoid Income Tax and National Insurance A practising … Continue reading HMRC name tax avoidance barrister
HMRC has secured a landmark victory at an Upper Tier Tribunal against Mini Umbrella Company (MUC) fraud. The judgement states that MUC’s fraud is valued at hundreds of millions per year, through abuse of the VAT Flat Rate Scheme and Employment Allowance. This tribunal decision is claimed to will help create fair competition for legitimate businesses, … Continue reading Mini Umbrella Company fraud tribunal win for HMRC
HMRC publishes the Employer Bulletin 6 times a year, giving employers and agents the latest information on topics and issues that may affect them. Some of these topics have already been covered by PAYadvice.UK in articles and blogs and further articles and blogs may now additionally be published. The August edition of Employer Bulletin includes … Continue reading Employer Bulletin: August 2025
The government says it is committed to closing the tax gap and making the tax system fairer. Good and bad umbrella Many umbrella companies operate diligently, supporting their employees and providing convenience and administrative benefits for agencies. ..too many are used to facilitate non-compliance However, too many are used to facilitate non-compliance including tax avoidance … Continue reading Non-compliant umbrellas to be tackled
HM Revenue and Customs (HMRC) have published promotional information on how to spot the signs of disguised remuneration tax avoidance schemes. Tax avoidance does not pay: most schemes do not work. Those who use tax avoidance schemes may end up paying more than the tax they tried to avoid as well as interest and potentially … Continue reading Spotting disguised remuneration tax avoidance schemes
With HMRC clamping down on some umbrella organisations, and new regulatory obligations also being introduced, some employees are finding that the are being transferred from one umbrella to another. HM Revenue and customs have issued guidance for those who are potentially being targeted and involved in tax avoidance arrangements which don’t work. HMRC provide the … Continue reading Being moved between umbrellas?
On the afternoon of Monday 28th April 2025, the Exchequer Secretary to the Treasury (XST) made a written ministerial statement to parliament with a package of measures aimed at simplifying the tax system. At Autumn Budget 2024 and Spring Statement 2025, the government committed to bring forward a package of measures in Spring 2025 aimed at simplifying … Continue reading Tax Update Spring 2025: Simplification, Administration, and Reform
Actions to take as an umbrella company to support compliance and best practice in the temporary labour market. Prior evidence has indicated that around 70% of umbrella organisations may have been involved in either promoting or operating tax avoidance schemes, some to public sector workforces in Health and Local Government. HM Revenue and Customs (HMRC) … Continue reading Good practice umbrella companies
The government has published its response to the consultation on Umbrellas on 4th March 226. There is evidence of widespread non-compliance in the umbrella company market resulting in the depriving of workers employment rights. The Government considers action in the umbrella company market is imperative to protect the most vulnerable workers. Responses to the consultation … Continue reading Umbrella non-compliance
The Government… table amendments to the Employment Rights Bill. The Government have laid amendments to the Employment Rights Bill following weeks of consultation with business groups and unions. The Bill claims to support the Government’s mission to increase productivity and create the right conditions for long-term sustainable, inclusive, and secure economic growth, delivering on the … Continue reading Employment Rights Bill latest
Secretary of State pledges to contain NHS agency spend Trusts could be banned from using agencies to cover gaps in entry level positions, and agencies could be banned from re-introducing NHS workers that leave permanent jobs Understaffed NHS forced to spend £3 billion on agency staff last year Wes Streeting to address healthcare leaders in … Continue reading Clamp down on NHS temporary workers
The most recent additions and updates to the list of named tax avoidance schemes, promoters, enablers and suppliers were published on 7 November 2024. New additions: Adapt Limited (Based in Isle of Man) Balance Bay Services Limited Century Umbrella Limited Consortius Solutions Limited Employe Limited Help protect workers from getting caught out by tax avoidance Tackling … Continue reading The list keeps growing – Tax Avoidance
Dear PAYadvice.UK Yesterday [Wednesday 30th October 2024], the Chancellor of the Exchequer, the Rt Hon Rachel Reeves MP, made her Autumn Budget speech and set out the government’s fiscal plans. This [communication] provides you with information on the key measures announced in the Autumn Budget 2024 that will be relevant to you as an agent. Tax related … Continue reading Autumn Budget 2024 – HMRC
Analysis shows that umbrella companies were used to engage at least 700,000 workers in 2022 to 2023. This also shows that at least 275,000 of these workers, and likely significantly more, were engaged at some point in 2022 to 2023 by umbrella companies that failed to comply with their tax obligations. These schemes can leave … Continue reading Tackling umbrella non-compliance
The image of the umbrella is significant as many of the named tax avoidance and those issued with official stop notices are umbrella organisations. Some even operate across the public sector. The workers are not all high paid, and the resulting tax bill for tax not paid on what is earnings, wages, employment income, can … Continue reading Tax Avoidance promoters – the list keeps growing – now over 120+
As part of the October 2024 Employer Bulletin, HM Revenue and Customs (HMRC) are asking employers to to assist with protecting workers from getting caught using tax avoidance schemes which do not work. The HMRC tax avoidance ‘don’t get caught out’ campaign helps workers such as contractors spot the signs of bad tax advice and understand their … Continue reading Help protect workers from getting caught out by tax avoidance
Another nine dodgy tax avoidance promoter schemes have been named by HM Revenue and Customs (8th August 2024 and 22nd August 2024). A similar pattern of pay close to National Minimum Wage and National Living Wage are made with the application of tax and National Insurance with a further disguised payment made without correct deductions … Continue reading More umbrella tax avoidance schemes named
HMRC have added Blizzard Pay Ltd (BPL) to their named list of tax avoidance scheme promoters. So how did Blizzard claim to work? Individuals within the Blizzard Umbrella provided services to end clients as employees of BPL. Employees receive part of their BPL remuneration at a rate close to the National Minimum Wage or National Living Wage which … Continue reading Blizzard added to the tax avoidance promoters list
HM Revenue and Customs (HMRC) have increased the number of named tax avoidance schemes, promoters, enablers and suppliers, update 18th July 2024. New additions: B2BTradecard Ltd New Mill Resourcing Ltd Umbrella Zone Limited If you are involved in any of the tax avoidance scheme contact HMRC as soon as possible. There is more information about how to do … Continue reading More names added to the tax avoidance list!
As part of the July 2024 Employer Bulletin, HMRC are highlighting their spotlight 64 information on rogue umbrella organisations and the difficulties agencies and their workers may get into. HMRC is aware that some umbrella companies who are using employment and recruitment agencies to promote tax avoidance. Warning for employment agencies using umbrella companies (Spotlight … Continue reading Warning for employment agencies using umbrella companies – Spotlight 64
The HMRC have added a further 3 umbrella organisations that have been found to promoting tax avoidance schemes which HMRC claim do not work. An umbrella company is a business often used by recruitment agencies to pay temporary workers. The common theme of these failed arrangements is a payment close to National Minimum Wage levels … Continue reading More umbrellas named!
HMRC have named more umbrella tax avoidance schemes that don’t work as part of the 72 tax avoidance named schemes. And there will be more under investigation or not yet caught. Added avoidance schemes are Goldfish Umbrella Limited, Signature Vintage Limited and We Are Ava Limited, of course they all claim full compliance with legal … Continue reading More named tax avoidance umbrella schemes bagged
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 exitHMRC Accent Umbrella advertised itself as ‘the perfect compliment to your work life. … Continue reading With Accent Umbrella? Get out!
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 … Continue reading Solucionis named by HMRC as tax avoidance promoter
The government remains concerned about the scale of non-compliance in the umbrella company market, and the detrimental impact that this has on workers, taxpayers and the labour market. In Summer 2023, the government consulted on options to reduce tax non-compliance in the market and will publish a response to its consultation soon. To support workers … Continue reading Tackling Non-Compliance in the Umbrella Companies Market
A tax avoidance promoter whose schemes were used by locum doctors and nurses faces a £900,000 penalty for failing to co-operate with HM Revenue & Customs. IPS Progression Limited (IPS) paid their 1,593 scheme users largely with tax-free loans between April 2016 and April 2022. Some of the workers were locum doctors and nurses whose … Continue reading £900,000 penalty for promoter of tax avoidance scheme
HMRC has updated it pages with the latest addition to the ‘Current list of named tax avoidance schemes, promoters, enablers and suppliers’ section. Named tax avoidance schemes, promoters, enablers and suppliers The law allows HMRC to publish information about promoters, enablers and suppliers of tax avoidance arrangements under the publishing legislation included in Finance Act 2022 (the … Continue reading HMRC tax avoidance promoters naughty list grows
HMRC continues to warn about avoidance schemes and have added another name to their published list – Purity Ltd. If you are you using this umbrella company? Get in touch with HMRC so they can provide help to exit How the scheme claimed to work Purity Ltd (‘Purity’) employees provide their services to an end … Continue reading Not so pure umbrella scheme – get out!
HM Revenue and Customs (HMRC) have named (21st December 2023) another tax avoidance promoter umbrella company using powers from the Finance Act 2022 - the named umbrella is MLG Pay Ltd. MLG Pay provides an umbrella service to contractors, freelancers, and temporary employees. They claimed to ‘provide a payroll service designed to bridge this gap … Continue reading Another avoidance umbrella named!
Working with HM Treasury (HMT) and the Department for Business and Trade (DBT), HM Revenue and Customs (HMRC) have published new guidance for employment businesses who work with umbrella companies. This guidance will help them to understand their legal responsibilities, support umbrella company workers in their supply chains and protect their business by reducing their … Continue reading Responsibilities for employment businesses working with umbrella companies
HM Revenue and Customs (HMRC) have added more tax avoidance schemes that don’t work. Bluestar Financial Solutions Limited The scheme user enters an employment contract with Bluestar Financial Solutions Limited who make composite payments to the scheme users for services provided by the user. The first element is a salary with tax and National Insurance … Continue reading HMRC names more tax avoidance schemes
They we have added (25th September 2023) three more names to the published list of tax avoidance schemes Olympus Contracting Limited, Hamilton Bradbury Ltd and Edge Umbrella Ltd. They urge anyone involved in these (and similar schemes) to get in touch if using these umbrella companies so they can provide help to exit. Olympus Contracting … Continue reading HMRC name three more tax avoidance schemes that don’t work
HMRC have added new names to their list of Tax Avoidance promoters. Some of these umbrella companies arrangement use an unusual structure utilising users' Personal Service Companies (PSC). ABC Umbrella Ltd The arrangements involve individuals providing their services to end clients or agencies through ABC Umbrella Limited as their employer. The individuals also enter an … Continue reading HMRC names and warns users of more tax avoidance scheme promoters
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 … Continue reading Another fruitless umbrella tax avoidance scheme named by HMRC
HMRC have listed another rogue umbrella promoting tax avoidance schemes which do not work. Named on 27th July 2023, Easyway Umbrella Limited of Hemel Hempstead, joins the pool of umbrellas and other organisations that have been judged as promoting failed tax avoidance schemes. Maybe not such an Easyway, this umbrella joins others named such as … Continue reading Another tax avoidance rogue umbrella warning
HM Revenue and Customs (HMRC) have named a further three tax avoidance promoters. They have added to their naming list: Bluemoore Associates Ltd, Resource Hubco Ltd, and PAYE services Ltd as tax avoidance schemes. They urge anyone using these umbrella companies to get help to exit. Bluemoore Associates Ltd (BAL). The users sign a contract … Continue reading Three more tax avoidance umbrellas named
Following the call for evidence in the umbrella company market with over 400 responses., the government have published the Summary of Responses document. The Call for Evidence was originally published in November 2021 and closed on 22nd February 2022. It asked for views and evidence to understand the reasons businesses and individuals use umbrella companies … Continue reading Regulating Umbrellas
The most recent update was on 20th April 2023 with the addition of Acacia Resourcing Services Limited and Marquee Ltd. Acacia Resourcing Services Limited Users sign an employment contract with Acacia that says they will be paid at least the National Minimum Wage (NMW). Users also enter into an Option Grant Agreement with Acacia. Users … Continue reading More tax avoidance Umbrellas named
Under the Promoters of Tax Avoidance Schemes (POTAS) regime, HMRC can publish information about promoters of tax avoidance schemes that are subject to a stop notice, and details of the scheme specified in the notice. New stop notices 6 through 11! The most recent update was on 13th April 2023 with the addition of another … Continue reading STOP notices served on 6 more avoidance schemes
HM Revenue and Customs (HMRC) are advising users of the named schemes promoted by Charteris Management Ltd (CML) to withdraw from them. These schemes often targeted physiotherapists, radiographers, and nurses, and often wrongly promise avoidance of National Insurance and Income Tax. The scheme users enter into an employment contract with Charteris Management Ltd (CML), providing … Continue reading More warnings to medical staff about dirty umbrellas
HMRC uses new powers to publicly name the directors of tax avoidance promoting companies. Tax avoidance bosses have been named for the first time in the latest move to help protect the public. HM Revenue and Customs (HMRC) has used new powers to publicly name directors of tax avoidance promoting companies, with customers being warned … Continue reading Directors of a tax avoidance promoters named for the first time
A tax avoidance promoter based in The Shard has been exposed by HM Revenue and Customs (HMRC) with users warned to withdraw or risk large tax bills. ContractorCare Ltd has been named by HMRC as a tax avoidance promoter, along with PAYEme Ltd, and Gateway Outsource Solutions Ltd. Customers of these business are being urged … Continue reading London landmark tax avoidance scheme named
As part of the August 2022 employer bulletin, HMRC has issued information on Organised Labour Fraud. Organised labour fraud is the collective name HMRC gives to three main frauds: labour fraud in constructionmini-umbrella company fraudpayroll company fraud It’s ‘organised’ because it is orchestrated and conducted by organised crime groups. It’s ‘labour fraud’ because it always … Continue reading Organised Labour Fraud
Countrywide Partners Limited has been named as a promoter of a tax avoidance scheme by HMRC. If you have been paid by them via this scheme where a part of your salary was in the form of a loan, please get in touch with HMRC now! Scheme users entered into an employment contract with Countrywide … Continue reading More tax avoidance schemes named
A tax avoidance scheme promoter has been hit with a £1 million fine after a legal challenge by HM Revenue and Customs (HMRC). Hyrax Resourcing Ltd was handed the almost-maximum allowed fine by the First Tier Tribunal for failing to disclose an avoidance scheme to HMRC as legally required. Hyrax promoted a disguised remuneration scheme … Continue reading Tax avoidance promoter fined £1 million
The government have launched a consultation to improve data in relation to employment and self employment. The consultation Proposes a number of options for improving the range of data HM Revenue and Customs (HMRC) collects, uses and responsibly and safely shares across government. They want to ensure that the data held gives an accurate and … Continue reading Improving the data HMRC collects – consultation
Best Employment Services provided umbrella payroll services and outsourced its operations to a network of Isle of Man companies, and shifted assets to Anguilla. Adrian Benedict Sacco 55, has been disqualified after running an umbrella payroll services company with links to the Isle of Man, potentially costing the public millions in unpaid income tax, National … Continue reading Umbrella company director banned
The Court of Appeal has found in favour of HMRC that Mr Hoey was liable to pay the tax in his income in ‘Stephen Hoey and others v HMRC’ (13th May 2022). HMRC welcomed the Court of Appeal decision, which confirms that this kind of tax avoidance scheme does not work. Tax avoidance deprives the … Continue reading HMRC wins disguised remuneration tax avoidance case
Naming tax avoidance promoters As part of the approach to support taxpayers to steer clear, or move out, of tax avoidance HMRC plans to publish details of those involved in the supply of mass-marketed tax avoidance schemes and details of the schemes they are selling. This will enable taxpayers to spot avoidance schemes more easily … Continue reading HMRC to name tax avoidance promoters
The government has published a call for evidence on the umbrella company market. Umbrellas - what are they? Umbrella companies play a role in the labour market by facilitating the engagement of temporary workers. Umbrella companies employ individuals on behalf of clients and employment businesses. They do not source work for the employee, which is … Continue reading Call for Evidence: umbrella company market
HM Revenue and Customs (HMRC) have issued new guidance to help agencies and employers reduce their risks of using umbrella employers who are operating tax avoidance schemes. Tax avoidance schemes Disguised remuneration schemes These schemes claim to prevent some payments being taxable. They describe taxable earnings paid for doing a job as something that is … Continue reading Reduce risk of using umbrellas who operate tax avoidance schemes
Union body warns use of umbrella companies could spiral post-pandemic New TUC research estimates that half of agency workers work for umbrella companies The TUC has called for umbrella companies to be banned. The union body says the scandalous workplace practices associated with umbrella companies have “no place in modern Britain”. An umbrella company is … Continue reading TUC urges ban on umbrella companies – end exploitation of workers amid scandalous workplace practices which have “no place in modern Britain”
Leicester payroll services boss banned for orchestrating multi-million pound tax avoidance scheme, while failing to justify £37 million expenditure in 11 months Scott Rooney, of Leicester, was appointed sole director of Magnetic Push Limited in February 2017. The company provided payroll services, trading from a serviced office in Liverpool, and was previously known as The … Continue reading Payroll boss in tax avoidance scheme 11-year ban
HMRC have issued information on fraud being committed by a number of Mini Umbrella Companies. HMRC claim that every business which either places or uses temporary labour should be aware of the potential dangers posed to by mini umbrella company fraud. Not only can a fraudulent supply chain lead to reputational and financial damage to … Continue reading Mini Umbrella Company (MUC) fraud
HMRC have published further guidance (29th April 2021) to clarify the position on agency and contractors who are employees of umbrella organisations. Working through an umbrella company Those employed by umbrellas can find out about how and what they will be paid if they are an agency worker or contractor and work through an umbrella … Continue reading HMRC publish guidance for those employed by umbrellas
The Low Incomes Tax Reform Group (LITRG) has published a research report looking at the use of ‘umbrella’ companies and other labour market intermediaries in the UK. The factual and technical report also considers the nature and scale of disguised remuneration schemes. It is intended to help increase public knowledge of how labour market intermediaries … Continue reading ‘Umbrella’ companies under the spotlight