Outcome unlikely to be different

In July 2023 HMRC published on its website a notice citing the claimant under FA 2022 s 86 - the provision permitting HMRC to publish information about suspected tax avoidance schemes.

The claimant was an umbrella company. In its statement of facts it said it paid its employees more than minimum salaries and operated a bonus scheme which resulted in ‘fully taxable payments’. It said it had chosen deliberately to differentiate from other umbrella companies’ practices of paying minimal salary and topping it up with loans.

HMRC became suspicious of the operating model because the PAYE records of the claimant’s employees included only those paid the minimum way even when they were in occupations or professions that normally attracted a higher salary. In April it wrote the claimant saying it was considering publishing a s 86 notice and providing 30 days for the claimant to make representations....