Stop notice 17

Arrangement details

The Scheme Users enter into an employment agreement with a Maltese company — Company A. The agreement states that unless otherwise specified, wages will be paid at the applicable National Minimum Wage (NMW) or National Living Wage (NLW). The employment agreement refers to potential bonus payments advising that a ‘Discretionary Profit-Sharing Bonus’ may be paid periodically if the user has, in the ‘reasonable opinion’ of Company A, generated sufficient profits to warrant the bonus (Clause 3.3 Employment Agreement).; At the same time, a UK company, Company B, enters into an agreement for services with the end client, or recruitment agency.; Company B accept assignments on behalf of the user and provide confirmation to the agency, specifying the duration of the assignment, the fees payable by the agency and such expenses as may be agreed (Clause 3.3 Agreement for Services).; Company B receives the funds for the services carried out by the Scheme Users from the recruitment agencies or end clients.; Company A make payment to Scheme Users, in their role as the employer. They issue payslips to the user showing a deduction ofPAYEand employeeNICs. A corresponding ‘Pay Statement’ is issued which includes an additional sum described as an ‘Umbrella Advance’. NoPAYEIncome Tax, nor any National Insurance contributions are deducted and accounted for in respect of the umbrella advance. Both the untaxed umbrella advance and thePAYEwages are paid to the user in a single payment, as confirmed by user bank statements.