CIPP Payroll: need to know - 2023-24

The Chartered Institute of Payroll Professionals

News On Line

Additions to the tax avoidance list Published: 31 August 2023 Emailed: 6 September 2023

HM Revenue and Customs (HMRC) has updated the list of named tax avoidance schemes, promoters, enablers and suppliers.

The below schemes have been added as of 31 August 2023: •

Pay Rec Limited – scheme users enter into an employment contract with Pay Rec Limited (PRL), which also invites them into a bonus scheme. PRL pays the scheme users a salary around the National Minimum Wage (NMW) or National Living Wage (NLW) with income tax and National Insurance contributions (NICs) deducted. At, or around the same time, the scheme users also receive a second payment, described as an advance against future bonus payments. This is paid without income tax and NICs deducted • Prime Umbrella Services Ltd - arrangements involve a user providing their services to end clients/recruitment agencies through Prime Umbrella Services Ltd and receiving two payments, one equivalent to NMW or, if applicable, the NLW salary and a second payment, described as a ‘pass through item’, on behalf of Wilson Costello Limited. The result is that the total remuneration for the users’ services is artificially separated i nto two payments. The first is a salary (equivalent to NMW/NLW) with tax and NICs deducted, and a second payment which is made without tax or NICs deducted.

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An update on the tax avoidance list Published: 14 September 23 Emailed: 20 September 2023

HM Revenue and Customs (HMRC) has updated the list of named tax avoidance schemes, promoters, enablers and suppliers.

The most recent update was on 14 September 2023, with the removal of four schemes first published on 29 September 2022, in line with the requirements of the Finance Act 2021. The entry for The Umbrella Agency Limited has also been amended.

The list of tax avoidance schemes subject to a Stop Notice is also accessible, here.

Please note that if a tax avoidance scheme is not shown in the list, this does not mean that the scheme works or is in any way approved by HMRC. You can also report a tax avoidance scheme to HMRC.

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Additions to the tax avoidance list Published: 26 September 2023 Emailed: 27 September 2023

HM Revenue and Customs (HMRC) has updated the list of named tax avoidance schemes, promoters, enablers and suppliers.

The below schemes have been added as of 25 September 2023:

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