HMRC has exposed a complex tax avoidance scheme and is warning anyone who has joined the arrangement to get out of it now.
The scheme, linked to businessman Darren Patrick-Green, involves contractors joining Singapore registered Procorre LLP to avoid paying Income Tax and National Insurance.
It works by having these workers and their PSCs enter into contracts to provide services to their clients as usual.
The PSCs invoice these clients and transfer the money received to Procorre LLP. Procorre LLP then deducts a fee before returning the rest of the income to the individuals or their PSCs. This money comprises various forms of payments including bank transfers from multiple sources and pre-paid cards.
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These payments should be subject to Income Tax and NIC.
Jonathan Smith, HMRC’s Director of Counter Avoidance, said, “Tax avoidance schemes are cynically marketed as clever ways to pay less tax. The truth is they rarely work in the way the promoters claim and it is the users that can end up with unexpected tax bills.
“We would urge anyone who thinks they have entered these schemes to contact us as soon as possible to get help.”
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