HMRC issues tax avoidance warning. Complex offshore tax avoidance scheme revealed

A complex tax avoidance scheme which moves income offshore has been exposed by HM Revenue and Customs (HMRC) today (29 February 2024), with anyone who has joined the arrangement warned to get out of it as quickly as they can.

The scheme, linked to businessman Darren Patrick-Green, involves contractors joining Singapore registered Procorre LLP to avoid paying income tax and National Insurance.

These workers and their Personal Service Companies (PSCs) enter into contracts to provide services to their clients as usual.

The PSCs invoice these clients and transfer the money received to Procorre LLP.

Procorre LLP then deducts a fee before returning the rest of the income to the individuals or their PSCs. This money comprises various forms of payments including bank transfers from multiple sources and pre-paid cards.

These payments should be subject to income tax and National Insurance Contributions and anyone involved in this scheme should contact HMRC as soon as possible and leave the arrangement.

Darren Patrick-Green (also known as Darren Green) is the Ultimate Beneficial Owner (UBO) of Corre Holdings SA (CHSA), a Swiss-based firm which is the majority owner of Procorre LLP. CHSA is also suspected by HMRC of involvement in further arrangements, potentially including the acquisition of users’ PSCs.

Also named on GOV.UK today for being in control of Procorre LLP is Jason Bougourd and Alizeh Nanji.

Jonathan Smith, HMRC’s Director of Counter Avoidance, said: “Tax avoidance schemes are cynically marketed as clever ways to pay less tax. The truth is they rarely work in the way the promoters claim that they will work and it is the users who could end up with unexpected tax bills.

“We are urging anyone who thinks they have entered these schemes to contact us as soon as possible to get help.”

More detail about this scheme can be found on HMRC’s list of named tax avoidance schemes, promoters, enablers and suppliers on GOV.UK. Two other schemes were also named today. https://rb.gy/iixwei

A spokesperson for HMRC said: HMRC is urging taxpayers to be vigilant and to stay away from tax avoidance schemes. The Don’t Get Caught Out campaign reveals the consequences of using tax avoidance schemes which could be unexpected tax bills, interest and penalties."

If anyone has used a tax avoidance scheme promoted by any firm named by HMRC, the HMRC is asking them to please contact HMRC by emailing: CAGetHelpOutOfTaxAvoidance@hmrc.gov.uk as soon as they can.