Article in the Times

[Loan Ranger]

https://www.thetimes.co.uk/edition/m...list-pwg6rf85k

Emails seen by Times Money show employment agencies taking business from their rivals by permitting workers on their books to be paid through “umbrella” companies that are being investigated by HM Revenue & Customs (HMRC).

However, emails show that new schemes suspected to be tax avoidance measures are still being set up to get around taxation rules. One expert said there were “dozens” in operation, being permitted by recruitment agencies all over the country, with thousands of social workers and locum nurses among their customers.


Emails seen by Times Money show how Tripod Partners, a recruitment consultant based in London and Luton believed to have hundreds of social workers and locum nurses on its books, permitted its contractors to have their affairs managed by Smart Pay, which HMRC suspects is a tax-avoidance scheme.

[cojak]

Sadly I have to snip this for copyright reasons, but I would advise people to read this.

[Togoodtobetrue]

Very interesting article, I am involved in the health care recruitment businesses but luckily for a responsible company that doesn’t permit dodgy umbrellas.

I can confirm that unfortunately the industry is riddled with agencies who are permitting or promoting these schemes to win over workers from rivals. The nhs and local councils make the right noises when told but always seem to fail to take any action.

Until hmrc make an example of an agency the industry in general will not fall into line!

[phil@pmtc]

Good article though with the usual ignorant comments afterwards from people jumping on a self made moral platform. Their opinion will change once it effects someone in their circle of family/friends. Still, at least the word is getting out and I believe HMRC aren’t happy about this.

[cojak]

There should be pressure to force HMRC to go for the scheme promotors, some of whom are almost psychopathic in their lack of regard for their ‘employees’/partners.

[phil@pmtc]

There should be pressure to force HMRC to go for the scheme promotors, some of whom are almost psychopathic in their lack of regard for their ‘employees’/partners.

I agree and think this is the best challenge that could be presented to HMRC. Their silence on the matter is deafening. Some would say that it’s due to the fact that it’s easier to take the low hanging fruit.

[QCApproved]

As a great many of these scheme devisors and QCs are ex HMRC or do Government tax work they should be able able to track them down quite easily. it seemed to be a well trodden path to top the final salary pension up with a spot of tax avoidance devising. Not often by the sharpest of HMRC finest chaps either as we have all discovered.

HMRC - scheme - QC- spiv - end client

[Iliketax]

There should be pressure to force HMRC to go for the scheme promotors, some of whom are almost psychopathic in their lack of regard for their ‘employees’/partners.

HMRC/the government are. Recent examples off of the top of my head include: Promoters of tax avoidance scheme legislation, enablers of defeated tax avoidance scheme legislation, Criminal Finance Act, using the Advertising Standards Agency to challenge adverts, some criminal prosecutions (but not many, some not successful), professional code of conduct in relation to taxation (professional institutes were encouraged to do this by HMRC), code of practice on taxation for banks, suspicious activity report...

The problem is the scummy end of the market. If you have suggestions about how to do this, post them here. HMRC do read the forum.

[jrock]

HMRC/the government are. Recent examples off of the top of my head include: Promoters of tax avoidance scheme legislation, enablers of defeated tax avoidance scheme legislation, Criminal Finance Act, using the Advertising Standards Agency to challenge adverts, some criminal prosecutions (but not many, some not successful), professional code of conduct in relation to taxation (professional institutes were encouraged to do this by HMRC), code of practice on taxation for banks, suspicious activity report...

The problem is the scummy end of the market. If you have suggestions about how to do this, post them here. HMRC do read the forum.

I know HMRC are reading these forums and probably laughing at how this is affecting us ex contractors! I bet they get pleasure on what they are putting us through. Hope they all suffer similar situations in life too.

If they had any soul they would now go after the scheme providers who have got off Scot free.

[QCApproved]

They have acted late in the day having stood on the sidelines for years when the bulk of the damage was done - there is now a lot of legislation for a problem that one would think is well and truly on the fringe now. The fees are now banked and the jurisdiction exited by promoters.