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Named Tax Avoidance Scheme published by HM Revenue & Customs
The arrangements involve individuals providing their services to end clients or agencies through ABC Umbrella Limited as their employer. The individuals also enter an agreement with Krevit Ltd where individuals grant the right to enter an Annuity Agreement in exchange for payments (the Grantee Payments). The individuals receive payment from ABC Umbrella Limited. However, tax and National Insurance contributions (NICs) are only deducted on a small part of the amount. This is evidenced on the payslips and figures reported toHMRC. It isHMRC’s view that the larger amount, paid without tax orNICsdeducted, is for the Grantee Payments, but paid by ABC Umbrella Limited on behalf of Krevit Ltd. It is alsoHMRC’s view that the Grantee Payments are additional disguised income for services provided by individuals through ABC Umbrella Limited, and the entire payment should therefore be subject to tax andNICs.
PaySentry automatically checks your umbrella company partners against HMRC Named Tax Avoidance Schemes and Stop Notices, alerting you to any matches.
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