5 Tax Avoidance Schemes Named by HMRC

The UK government is stepping up its efforts to curb tax avoidance with HM Revenue and Customs (HMRC) recently unveiling the details of five additional tax avoidance schemes. These schemes, including three promoted by AML Tax (UK) Limited, aim to cloak remuneration in order to reduce tax liabilities. This crackdown on tax avoidance is part of the government’s wider campaign to protect taxpayers and ensure a fair taxation system. In this article, we will delve into the specifics of these schemes and provide insights into the measures taken by HMRC to combat tax avoidance.

  1. AML Tax (UK) Limited and the Named Schemes:
    AML Tax (UK) Limited, a company previously fined £150,000 for failing to comply with HMRC during a tax investigation, is linked to three of the named schemes. The schemes are as follows:

a) Annuity Arrangements – This scheme operated by AML Tax (UK) Limited employs complex company structures and directors’ loan accounts to extract profits, allowing directors to receive income without paying the proper amount in Corporation Tax, Income Tax, and National Insurance contributions.

b) AML Prefunded EBT – Another scheme promoted by AML Tax (UK) Limited, this arrangement enables directors to receive remuneration while avoiding the correct payment of Corporation Tax, Income Tax, and National Insurance contributions.

c) AML Split Contract – Operating under the umbrella of AML Tax (UK) Limited, this scheme presents users with one payment resembling the National Minimum Wage, and another disguised payment deemed non-taxable. In this manner, Income Tax and National Insurance contributions are inadequately deducted.

  1. Other Named Schemes:
    In addition to AML Tax (UK) Limited, two other promoters and their schemes have been identified:

a) Enhanced Umbrella, promoted by Tailored UK Services Ltd (trading as Tailored Resourcing) – This scheme involves making a payment close to the National Minimum Wage, while hiding an additional payment that the promoters claim to be non-taxable. Consequently, Income Tax and National Insurance contributions are not adequately deducted.

b) Able Ltd and Contractor Central Accounting Ltd – Able Ltd, based in the Isle of Man, and Contractor Central Accounting Ltd, situated in Gateshead, are connected to a scheme where users receive one payment close to the National Minimum Wage and another undisclosed payment, which is presented as non-taxable. This arrangement results in incorrect deductions of Income Tax and National Insurance contributions.

  1. HMRC’s Measures Against Tax Avoidance:
    HMRC has taken various steps to tackle tax avoidance and raise public awareness of such schemes as part of its Tax Avoidance – Don’t Get Caught Out campaign. These measures include:

a) Public Promoter Naming: HMRC has made a crucial move by publicly naming the promoters associated with tax avoidance schemes. This offers individuals the opportunity to identify potential involvement in such schemes and report them promptly.

b) Enablers Penalties: HMRC has started imposing penalties on individuals or entities who assist or facilitate the implementation of tax avoidance schemes, amounting to 100% of their fees. This stringent approach aims to dissuade and undermine the profitability of promoting tax avoidance schemes.

c) Ongoing Investigation: HMRC is actively scrutinizing the tax avoidance supply chain and has over 150 enablers currently under investigation. This highlights the government’s commitment to tackling tax avoidance from multiple angles.


As HMRC continues to crack down on tax avoidance in the UK, it has named five more tax avoidance schemes, including three promoted by AML Tax (UK) Limited. This move is part of a broader campaign to protect taxpayers and ensure a fair taxation system. By exposing these schemes publicly, HMRC aims to empower individuals to identify and report tax avoidance schemes. Additionally, the imposition of enablers penalties and ongoing investigations underscore the government’s determination to curb tax avoidance practices. It is crucial for taxpayers to remain vigilant and report any suspected involvement in such schemes to HMRC promptly.