HMRC lists barrister as a new addition to their tax evasion scheme promoter roll-call for the first time
In a significant move to combat fraud and tax avoidance, HM Revenue & Customs (HMRC) has publicly named barrister Setu Kamal as a promoter of tax avoidance schemes. With over 20 years of experience, Kamal is the first legal professional to appear on the government's official list for such activities.
The barrister, known for his work with umbrella companies, designed and marketed four arrangements aimed at reducing workers' Income Tax and National Insurance liabilities. These schemes, promoted by MLG Pay Limited, The Umbrella Agency Limited, Veqta Ltd, and Vision HR Solutions Ltd, have been identified by HMRC as ineffective and potentially costly for those who used them.
According to HMRC, these schemes do not work, and those who employed them face potential tax bills, interest, and penalties. The tax authority warns that tax avoidance schemes often leave users worse off. In light of this, they encourage those who have used these schemes to exit them and bring their tax position up to date.
The new legislation, set to be implemented in April 2026, aims to reduce fraud and tax avoidance in the sector involving umbrella companies. Under the changes, recruitment agencies will be legally responsible for ensuring Pay As You Earn (PAYE) tax is correctly accounted for when engaging workers through umbrella companies.
Common features of tax avoidance schemes include loans or advances instead of wages, minimal deductions for tax, or overly complicated payment structures. Workers employed through umbrella companies are urged to check their payslips carefully.
HMRC's Director of Counter Avoidance, Jonathan Smith, stated that legal professionals should not be creating arrangements designed to sidestep tax obligations. He emphasised that those in positions of trust and responsibility, such as Kamal, should not be involved in creating tax avoidance schemes.
Anyone concerned that they may have been involved in a tax avoidance scheme is advised to contact HMRC directly. HMRC has also published an online tool to help workers calculate their pay and spot warning signs of disguised remuneration.
In response to the naming of Kamal, Smith added, "Promoting tax avoidance schemes is unacceptable, regardless of professional status. We will pursue not only the companies that market and sell these schemes but also the individuals behind them."
This move by HMRC underscores their commitment to tackling tax avoidance and ensuring fairness for all taxpayers.
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