Complex offshore tax avoidance scheme named by HMRC

A tax avoidance scheme that moves income offshore has been uncovered by HMRC. The scheme involves contractors joining Singapore registered Procorre LLP to avoid paying income tax and National Insurance. These workers and their personal service companies (PSCs) enter into contracts to provide services to their clients as usual. The PSCs invoice these clients and transfer the money received to Procorre LLP which then deducts a fee before returning the rest of the income to the individuals or their PSCs. This money comprises various forms of payments including bank transfers from multiple sources and pre-paid cards.

HMRC states that these payments should be subject to income tax and National Insurance. It advises anyone involved in this scheme to contact HMRC as soon as possible and leave the arrangement.

More detail about this scheme can be found on HMRC’s list of named tax avoidance schemes ...