Publicly named by HM Income and Customs (HMRC) as the promoter of the Tax Avoidance Program, a practicing barrister, is the first time that legal professionals have appeared on the government’s official list.
HMRC said that 20 years of experience, the barrister Setu Kamal designed four arrangements for sale through umbrella companies, which they claim can reduce workers’ income tax and state insurance liability. These programs were promoted by MLG Pay Limited, Umbrella Agency Limited, VEQTA Ltd and Vision HR Solutions Ltd.
According to HMRC, these plans often assure workers that they can “keep more salaries” through complex structures, including contract templates created using Kamal. Officials warn that such plans “do not work” and that those who use them face tax bills, interest and potential fines.
HMRC Anti-Avoidance Director Jonathan Smith said that legal professionals in responsible positions should not be made to avoid tax obligations.
“Legal professionals have a position of trust and responsibility – they should not be involved in developing plans that claim to keep people from paying taxes on our important public services.
We want to support those who use these plans to exit them and keep their tax status up to date. I urge them to contact us as soon as possible so that they can resolve their affairs. ”
The move marks that HMRC is pursuing not only the companies that are marketing and selling avoidance programs, but also the individuals behind it, regardless of professional status.
Tax avoidance programs are often promoted ingenious ways to reduce debt, but HMRC warns that they often make users worse. Common characteristics include loans or promotions, not wages, minimum deductions for taxes, or overly complex payment structures.
Workers employed through the umbrella company are urged to double-check Payslips. HMRC has released an online tool that can help workers calculate their paychecks and on-site warning signals for their disguised rewards.
Starting in April 2026, new legislation will allow recruiting agencies to legally hold accountable to ensure that the salary (PAYE) tax you earn is properly considered when interacting with workers through an umbrella company. The change is designed to reduce fraud and tax avoidance in the industry.
Anyone who is worried that they may be involved in a tax avoidance program is advised to contact HMRC directly.
