Procorre LLP – Navigating HMRC’s Latest press release on Tax Avoidance Schemes

In a recent press release that highlights the steadfast stance of HM Revenue and Customs (HMRC) against tax avoidance, a complex scheme associated with Darren Patrick-Green, involving the engagement of contractors with Singapore-based Procorre LLP, has been brought to light. This scheme, designed to sidestep Income Tax and National Insurance obligations, highlights the lengths to which some entities will go to minimise their tax liabilities. As experts in tax resolution and compliance, Edge Tax is ideally positioned to assist individuals and businesses caught in such schemes with the necessary disclosures and settlements.

Procorre LLP The Scheme

On February 29, 2024, HMRC’s press release gave information on a sophisticated tax avoidance arrangement and named Procorre LLP on its current list of named tax avoidance schemes. Contractors, through their Personal Service Companies (PSCs), were found to be engaging with Procorre LLP in a bid to move their income offshore, thereby avoiding UK Income tax and National Insurance contributions. The mechanism involved contractors invoicing their clients as usual but then transferring the income to Procorre LLP, which, after deducting a fee, Procorre LLP would be return to the individual/PSC through various forms of payment (such as bank transfers from multiple sources and pre-paid cards), all of which should be subject to Income Tax and National Insurance contributions.

HMRCs message

HMRC’s message is clear: individuals involved in this arrangement must extricate themselves and reach out for guidance as swiftly as possible. The press release not only names Darren Patrick-Green but also highlights the roles of Jason Bougourd and Alizeh Nanji in the control of Procorre LLP, pointing to a broader network of entities potentially involved in facilitating or promoting these avoidance tactics.

Bringing your tax affairs into order

At Edge Tax, we understand the complexities that taxpayers face, especially when inadvertently caught in the web of tax avoidance schemes. Our approach is twofold: firstly, providing immediate assistance to disclose involvement with such schemes to HMRC, and secondly, planning the settlement of any outstanding tax liabilities in a manner that is both fair and compliant.

Expert Guidance on Disclosures

Our team of tax experts offers bespoke advice on navigating HMRC’s disclosure requirements. Recognising that each case presents unique challenges, we tailor our support to ensure that disclosures are complete, accurate, and presented in a way that seeks to minimise penalties and interest charges.

Settlement and Negotiation

Understanding the financial and emotional toll that unexpected tax bills can create, Edge Tax is committed to representing our clients in negotiations with HMRC.

Prevention and Education

Beyond resolution, Edge Tax is dedicated to educating taxpayers on the risks associated with tax avoidance schemes. Our expertise is not just in remediation but also in prevention, offering guidance on legitimate tax planning strategies that comply with HMRC’s regulations and ethical standards.

Conclusion

The recent HMRC press release serves as a timely reminder of the inherent risks in tax avoidance schemes. For those affected by tax avoidance schemes, the process of disclosure may seem daunting, but we here at Edge Tax  will stand as your trusted allies and will support you through every step of the process, ensuring to assist with the process from start to finish and liaising with HMRC on your behalf at every step.

We would encourage anyone involved in, or concerned about, their tax planning strategies to reach out for professional advice. Together, we can ensure that your tax affairs are not just compliant, but also aligned with your financial goals and HMRC’s ethical standards. If you are ever unsure of a piece planning, you should always seek advice from an impartial tax adviser.

If you have any concerns regarding the content of this article or any other potential avoidance scheme you can find more informaiton regarding tax investigations here and how we can help you

Read the full HMRC press release on Procorre LLP and the complex tax avoidance scheme here