HM Revenue and Customs (HMRC) has used new powers to publicly name directors of tax avoidance promoting companies, with customers being warned to leave the firms’ schemes or risk large tax bills.
Adam Fathers is the director of tax avoidance promoter Saxonside Ltd while Stuart John Brooke is behind tax avoidance promoter The Umbrella Agency Ltd.
Naming the directors behind these schemes will alert the public to steer clear of any avoidance schemes promoted by other companies with the same directors.
Mary Aiston, HMRC’s director of counter avoidance, said naming the people behind tax avoidance schemes is a crucial step in helping customers stay clear of current and future schemes they promote.
The Umbrella Agency Ltd and its director have been exposed for the first time. HMRC has also exposed the director of the previously named promoter Saxonside Ltd, with users of both schemes warned to withdraw or risk large tax bills.
Both schemes’ users enter an employment contract with the promoter and are then paid the National Minimum Wage. Scheme users then receive the remainder of their income disguised in a bid to avoid paying Income Tax and National Insurance. Schemes such as these often wrongly promise their users can avoid National Insurance and Income Tax.
This latest step in HMRC’s crackdown on tax avoidance promoters comes as a stop notice was issued earlier this month. This prevents the promoter from selling their scheme or face penalties of up to £1 million.
A total of 15 companies involved in promoting tax avoidance schemes have been named by HMRC. This is not a complete list of all tax avoidance schemes currently being marketed, nor a complete list of all promoters, enablers, and suppliers.
