Hall of Shame Inductees

Recruitment and umbrella companies named as deliberate tax defaulters

A recruitment company and an umbrella company have appeared on HMRC's second publication of deliberate tax defaulters.

Those that have received penalties either for:

  • deliberate errors in their tax returns; or
  • deliberately failing to comply with their tax obligations

may have their offences published on HMRC's website but only where:

  • HMRC have carried out an investigation and that person has been charged one or more penalties for deliberate defaults; AND
  • those penalties involve tax of more than £25,000.

Only when penalties become final do the Revenue then go ahead and publish the details.

Paymaster Ltd of Birmingham operated an umbrella scheme for lower paid workers and in the two years ended 5th April 2012 owed just shy of £2 million in tax, incurring penalties of just over half that amount.

Alexander Black Recruitment Ltd based in Knightsbridge, London, clocked up a tax debt of £111,000 in the nine month period to 31st December 2010 together with associated penalties of £66, 500.

Another company, described as a construction labour supply firm, G S Services London Ltd, owed tax of just over £0.5 million in a seven month period to 5th November 2011, attracting a penalty of £356,000.

Unsurprisingly, all three companies are in liquidation.

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