HMRC rules out a list of compliant umbrella companies

The UK tax authority has turned down to ContractorUK a call to publish a list of compliant umbrella companies.

HMRC was called to create the list of rule-abiding umbrellas amid concerns that the “Current list of named tax avoidance schemes…” has become too long and unwieldy.

Published online, the list of named tax avoidance schemes added its 180th entry last week.

‘Withdraw to prevent building up a large tax bill’

No schemes have been newly ‘named and shamed’ by HMRC since.

So, as of July 29th 2025, there are 180 avoidance companies that HMRC says contractors should “withdraw” from the arrangements of, to “prevent building up a large tax bill.”

The Revenue has had to import an A-Z index into the list to help taxpayers navigate it more easily.

‘Plea for HMRC to publish a list of compliant umbrella companies’

A former finance manager at a recruitment agency says his “plea” would be for HMRC to start publishing a new list -- one that names only “compliant” payroll operators.

“[There’s just] so many red flags [that contractors are meant to avoid],” said an exasperated-sounding Alan Lowdell, formerly of Gattaca, pointing to the 180 avoidance companies and their schemes.

Lowdell asked: “Why not, [HMRC], publish and promote the names of the names of compliant companies? It would be really helpful for supply chains.”

‘HMRC list of compliant umbrellas could put taxpayers at risk’

But the Revenue yesterday ruled out publishing a list of compliant umbrella companies on a few grounds.

An HMRC spokesperson told ContractorUK: “Publishing a list of umbrella companies we currently believe to be compliant could put taxpayers at risk.

“These companies may later move into operating a tax avoidance scheme. 

“Instead, we provide detailed guidance for anyone looking to join one.”

‘Contractors should steer clear of 180 avoidance company arrangements’

HMRC explained that a list of compliant umbrella companies would likely be even longer than 180 entries.

And even then, it would only be a snapshot of each umbrella’s compliance at that time.

HMRC believes identifying non-compliant umbrella companies for contractors to “steer clear of,” as the HMRC spokesperson put it yesterday, provides more certainty.

‘Income from an employer leads to a PAYE liability’

Ironically, a lack of certainty about the tax position of the ‘named and shamed’ arrangements appears to be troubling Tax Policy Associates boss Dan Niedle.

He said: “I wonder if the answer is that they [HMRC] don't know?”

Niedle was responding to an online thread, which asked: “If the general rule is that income from an employer leads to a PAYE liability on the employer in 2025, did that same principle apply in 2005, 1995, 1955?"

It is to this question that tax campaigner Niedle suggested that the answer could be that the Revenue simply doesn’t know.

‘Why is the untaxed element considered to be taxable?’

Revenue dispute adviser Graham Webber of WTT Group says there are two other key questions -- and they ought to be answered by HMRC.

Webber took to LinkedIn with the questions in light of an HMRC graphic which tax officials posted to social media after newly ‘naming and shaming’ Knights Network Ltd, which states: “Users received a salary via PAYE. They then received the remainder of their pay without income tax or national insurance deductions.”

Posting his two key questions under the HMRC graphic, Mr Webber asked: “[But] why is the untaxed element considered to be taxable?

“And is it employment income from a genuine employment, or is there something else here?”

‘A bloody useless HMRC announcement that helps nobody’

Webber explained that the HMRC graphic saying, in effect, that ‘some money was taxed; some was not, and so that’s avoidance,’ “helps nobody.”

WTT’s tax director added: “I am a supporter of HMRC's ‘name and shame’ policy in the space of payroll schemes. [But] this announcement [made in this HMRC social media graphic], however, is -- with respect -- bloody useless.”

‘Avoidance scheme companies picking stupid names’

Knights Network Ltd was added by HMRC to its list of tax avoidance schemes for contractors to avoid with another scheme, Less Tax for Landlords Ltd.

“With a name like ‘less tax’ who would have thought it!?” mused Michael Konzon, an FCSA-accredited contractor payroll adviser.

Non-compliant umbrella companies are now including ‘keywords’ that contractors might search for online in their company and scheme names.

But the names of some of the ‘named and shamed’ continue to stand out to some advisers for less sophisticated reasons.

Referring to  Less Tax for Landlords Ltd (blacklisted on July 24th), SG umbrella director Ciaran Woodcock says he hasn’t seen such a “stupid” name since Man vs Tax Ltd.

‘Someone likes a joke’

In a ContractorUK forum thread, where contractors keep track of the ‘named and shamed,’ one user picked up on the name of an avoidance company scheme blacklisted in May.

“‘The Brightest Future,’” wrote CUK Forum user ‘woody1.’ “Someone likes a joke.”

The Freelancer & Contractor Services Association (FCSA) also keeps track of the names added to HMRC’s Current List of Tax Avoidance Schemes, Promoters, Enablers and Suppliers.

The FCSA observes that, as well as naming Less Tax for Landlords and Knights Network on July 24th, HMRC updated the entries for Start Payment Services and Blizzard Pay.

‘HMRC avoidance blacklistees being updated should earn them a sanction’

Potentially with taxpayers’ money on their mind, another CUK Forum user reflected:

“Really, HMRC having to update the named and shamed [entries] should mean sanctions for the characters [behind the arrangements].

The irregularity of the list updating is also a rub, with one forum user wondering if ‘the scammers have gone legit, given HMRC hasn’t published anything new for over a month.’

HMRC clarified that it continues to consider the most helpful way to display this information on its avoidance blacklist, and welcomes feedback on the most helpful way to do so.