Tax avoidance remains a key focus for HM Revenue and Customs (HMRC), and one of their most public tools in tackling it is the list of named tax avoidance schemes, promoters, enablers, and suppliers. But what is this list, and why should you be aware of it?
What is the List?
Essentially, it’s a public register where HMRC names companies and schemes it believes are involved in promoting or facilitating tax avoidance. These schemes often involve complex arrangements, such as paying individuals minimum wage through payroll while disguising the rest of their income as untaxed loans, advances, or other similar payments. HMRC explicitly warns that these schemes don’t work as advertised and using them can lead to significant unexpected tax bills, plus interest and penalties. Inclusion on the list signifies HMRC’s view that the scheme is non-compliant; it does not mean HMRC has ‘approved’ any scheme not on the list.
Growing Numbers and Regular Updates
The list isn’t static. HMRC updates it regularly, adding new schemes and promoters as their investigations conclude. Recent figures suggest the list now contains well over 150 named entities. The rate of additions highlights HMRC’s ongoing crackdown; updates often occur multiple times a month. In some cases, HMRC adds further entries for already-listed firms under different regulations, like the Promoters of Tax Avoidance Schemes (POTAS) regime, strengthening their action against persistent promoters.
Why It Matters to You
For contractors, freelancers, and businesses engaging payroll providers or umbrella companies, this list is a vital resource. Engaging with a named scheme, even unknowingly, can have severe financial consequences down the line. Promoters often use misleading marketing, claiming HMRC approval or guaranteeing higher take-home pay. Remember, if an arrangement sounds too good to be true, it probably is. Always perform due diligence and if you suspect you might be involved in a scheme, or are unsure about a provider, contact HMRC directly for guidance. Staying informed helps protect you from costly future tax liabilities.
