More tax avoidance schemes named by HMRC

Another five tax avoidance schemes have been named by HM Revenue & Customs in its bid to warn the public not to get involved with such organisations.

Three AML linked schemes were named:

• Annuity Arrangements, AML Tax (UK) Limited, 1st Floor, Blackfriars House, Parsonage, Manchester, M3 2JA.
• AML Prefunded EBT, AML Tax (UK) Limited, 1st Floor, Blackfriars House, Parsonage, Manchester, M3 2JA.
• AML Split Contract, AML Tax (UK) Limited, 1st Floor, Blackfriars House, Parsonage, Manchester, M3 2JA.

These were found to be making use of complex company structures and directors’ loan accounts to extract profit, providing directors with income where Corporation Tax, Income Tax and National Insurance contributions were not correctly paid.

The other two schemes are:

• Enhanced Umbrella, Tailored UK Services Ltd (TUSL), trading as Tailored Resourcing, 67 Grosvenor Street, Mayfair, London, W1K 3JN.
• Able Ltd / Contractor Central Accounting Ltd Able Ltd: 2nd Floor, Queen Victoria House, Victoria Street, Douglas, Isle of Man, IM1 2LF.Contractor Central Accounting Ltd (CCAL): The Axis Building Maingate, Team Valley Trading Estate, Gateshead, England, NE11 0NQ.

And these were found to have made one payment to users close to National Minimum Wage and then another disguised payment, which the promoters claim is non-taxable and Income Tax and National Insurance are not correctly deducted.

Mary Aiston, HMRC’s Director of Counter-Avoidance, commented, “These 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 end up with big tax bills. HMRC will continue to use all the powers at our disposal to crack-down on promoters.

“Anyone who thinks they may be involved in a tax avoidance scheme, or have been approached by a scheme promoter, should contact us as soon as possible to get help.”

To find out more about contracting please contact Jaime on 01206 591 000 or email jaime.thorpe@contractorumbrella.com.