Stop notice 6

Arrangement details

Scheme Users enter into an employment contract (‘the Employment Contract’) with Focus Contractor Limited. The Employment Contract stipulates that the employee will work on client assignments. In relation to payment, it states that Focus Contractor Limited will pay the employee (ie the Scheme User) the applicable National Minimum Wage or, if applicable, the National Living Wage (NMW).; At the same time, or shortly afterwards, Scheme Users are issued a share in the Isle of Man protected cell company, Company Y. The share is in a cell that is specific to the Scheme User.; Focus Contractor Limited invoices the recruitment agency or end client for the services carried out by the Scheme Users based on the hours worked and the appropriate hourly rate.; Focus Contractor Limited receives the funds for the services carried out by Scheme Users from the recruitment agencies or end clients.; The amount that each Scheme User is entitled to be paid is confirmed in the Employment Contract as being in line with theNMW. Focus Contractor Limited makes a payment to the Scheme User in line with, or slightly above, theNMWhourly rate. This is confirmed by the payslips and the bank statements of Scheme Users.; A secondary, nontaxed payment is made to the Scheme Users. The secondary payments are said to be made in connection with an increase in the value of the share in the unique cell in Company Y that is specific to the Scheme User. NoPAYEIncome Tax is deducted and accounted for in respect of the payment, nor are any National Insurance contributions deducted and accounted for in respect of the payments.; An amount of approximately 10% is said to be retained in an escrow account, purportedly to cover the Scheme Users’ future Capital Gains Tax liabilities.