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How would you know if a temp agency is using a tax avoidance scheme?

Guardian investigation has discovered that the taxpayer is losing hundreds of millions of pounds a year in national insurance

Finding out if workers are employed within a tax avoidance scheme may be a little tricky – however there may be some indications to look out for.

Employees payslips will be branded by the scheme promoter, such as Premier Payco, and there would usually be a contract issued by the tiny company that is employing them.

Although the companies are registered with Companies House, they are difficult to find.  The Guardian uncovered hundreds of these type of companies, almost all of them registered with identical names, the only difference being a number at the end of the name.  The description of these companies is not listed and many directors are based overseas.

If the workers are unaware, what about the huge organisations where these people turn up for work?

Some large companies might know, but it will be up to the employment agency to inform them as to what is going on.

The agency may decide to keep the arrangements to themselves, for two reasons: firstly, because their ultimate client might disapprove; and secondly, if they don’t disapprove, they might want a cut of the savings.

Burberry is one such company implementing these schemes and when contacted by the Guardian, they said that they “were not aware of the allegations” made against one of its recruitment providers. It added: “We take these allegations extremely seriously and will be conducting an immediate review.”

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