HMRC Spots 4 New Tax‑Avoidance Schemes – What It Actually Means
On September 5, HMRC added four fresh players to its roster of known tax‑avoidance schemes. On paper, that sounds like progress—less shady umbrella companies floating around. But the real picture is a little uglier.
Why the Count Keeps Ramping Up
- Since 2022, the ministerial body has officially listed roughly 100 schemes. That’s not a handful; it’s a full‑blown buffet of loopholes.
- New IR35 rules and a weak umbrella‑sector regulator create a breeding ground for cheats.
- Contractors and freelancers across the country are still skating on thin ice, risking fines or worse.
What Qdos, the tax‑compliance guru, says
Qdos, a firm that keeps an eye on the tax game, points out that five years of lax oversight and the “IR35” overhaul have literally turned the sector into a hotbed of non‑compliant activity.
Key points from CEO Seb Maley:
- Happy news? Maybe. Fewer rogue umbrella companies mean a cleaner market.
- Big issue? Around 100 schemes sing the hit list—underlines how widespread the problem is.
- Laravel’s “off‑payroll” rules accidentally made real contractors fearful of mis‑classifying themselves.
- Alternative: The government must step up, regulate the umbrella sector, and hold its operators accountable.
- Result: Freelancers and flexible workers stand to gain decent protection from the shady “corner‑store” operators.
Action Plan: What Needs to happen next
Maley lays out a clear road map:
- Regulate the umbrella industry, making it harder for illicit schemes to thrive.
- Re‑examine the strategy that led to the Loan Charge—a controversial move that left many in a gray zone.
- Strengthen protections for self‑employed and gig‑workers against exploitation.
“So, what’s the concern?”
While the headlining count of four new schemes might seem like a win, the larger story is that tax non‑compliance has exploded.
“A big change is needed. The new administration should follow through on the past call for umbrella‑sector regulation and act swiftly,” Maley stresses. “We’ve reached a point where gig workers and freelancers have been let down for too long.”
Interesting Tidbit: Labour’s Promise
The Labour Party’s campaign promised to nail down “exploitative work practices.” If the government sticks to that script, it could finally shut down those scheming operators and put real protections in place.
As for the Loan Charge scandal, a delayed but just‑like‑you justice for affected people would also be a nice finishing touch.
