CIPP Payroll: need to know - 2022-23

`The Chartered Institute of Payroll Professionals

News On Line

Integra Resourcing Ltd (Incorporated Malta)

Jeceris Limited

Ombros Solutions Limited

The scheme involved users signing separate contracts with two different companies. Company one would deduct a fee and pay users at, or just above, minimum wage. The remainder of the funds were sent to company two as an ‘introducer fee’. After deducting another fee, company two would make a larger payment, labelled as ‘loan’ or similar. Tax and national insurance were not paid on the second payment made to the worker. Don’t get caught out, make sure everyone involved in the engagement of contract workers does their due diligence. Some of the accompanying businesses were already named on the list, a quick check could save you or a client becoming involved in such a scheme.

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Five names added to HMRC’s tax avoidance schemes list Published: 24 January 2023 Emailed: 25 January 2023

HM Revenue and Customs (HMRC) regularly updates its list of tax avoidance schemes, promoters, enablers and suppliers.

Five new companies have been added to the list, including three linked to one company, AML Tax (UK) Ltd. These schemes used complex company structures, using directors’ loan account to generate profit and incorrectly pay the due taxes. Lat year, AML Tax (UK) Ltd was fined £150,000 for failing to provide information as part of a HMRC investigation.

The other two schemes added were as a result of using the more common method where a payment close to minimum wage is paid and additional payments made in a disguised arrangement.

HMRC also indicates in the press release that the first penalties for enablers has been issued. This is to dissuade any involvement in the supply chain of a tax avoidance scheme. There are also over 150 investigations currently underway.

HMRC also encourages the use of its interactive risk checker, to see if it is likely someone you are involved with is operating such a scheme.

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Another name goes on the tax avoidance schemes list Published: 8 February 2023 Emailed: 15 February 2023

Not three weeks after the last addition, HM Revenue and Customs (HMRC) adds another name to their list of tax avoidance schemes, promotors, enablers and suppliers.

Alpha Republic Limited (ARL) has been included on the list on 7 February 2023. The scheme pays users a salary at minimum wage subject to normal payroll deductions, a secondary payment is then made, which is not taxed, minus ARL’s fee.

This method is commonplace on the list, with few schemes not using this disguised remuneration structure to avoid paying the required taxes.

This brings the total amount of separate companies on the list to 33.If you suspect a tax avoidance scheme is being used HMRC strongly urge you to speak to them and avoid contributing the ever expanding list of non-compliant companies.

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