The firms were named after HMRC uncovered the use of so-called ‘introducer agreements’ for recommending a scheme run by B2BTradecard Limited to clients, and subsequently the accountancy firms were paid fees for successful referrals to the avoidance scheme. The fees were calculated based on a fixed percentage of the amounts spent by their clients on the arrangements promoted by B2BTradecard, a Chorley based advertising services business run by CEO Craig Parsons. 

The accountancy firms named on the HMRC promotors list were Atlas Accountancy, Henry Bramall & Co, HB&O, Ojak Consultancy and Roelken. In addition, two management companies involved in the referrals were also named, Harrison Beale & Owen Management Services Ltd and SPM Management Consultancy Ltd. 

Gary Widdowson FCCA, managing director of Henry Bramall & Co, told Business & Accountancy Daily: ‘This scheme was introduced to us by a third party and was presented as having received HMRC approval. Once HMRC raised concerns, we immediately advised the small number of clients involved to withdraw from the scheme.

‘Since then, we have fully cooperated with HMRC in their limited enquiries and are taking specialist advice to ensure our position is fully compliant. If any further steps are required, we will take them and continue to work constructively with HMRC.’

B2BTradecard targeted accountancy firms, giving them leaflets to display in their offices, to promote the scheme, which ended in 2023.

One of the B2B leaflets, entitled practical notes, stated: ‘If HMRC were to argue personal benefit, this is negated by the fact that anybody can join B2BTradeCard and get the same benefit; employment by company is not a necessary antecedent condition (the same as Avios / Air Miles etc) – HMRC EIM21618 is very clear.’

The B2B note also claimed this ‘was not a “contrived scheme” (as per Scotts Atlantic [case] 2015)’.

This was the case at Ojak Consultancy, now Certax Accounting Basingstoke, which was given leaflets to put in their reception.

Olusegun Kazim FCCA, principal at Certax Accounting Basingstoke, said: ‘The B2B Tradecard scheme ceased completely in 2023 and is no longer active since then nor has any connection with our firm.

‘B2B Tradecard Ltd’s staff left their promotional leaflets in our former office and were picked up by visitors who then made contact to deal with them directly.

‘We did challenge B2B Tradecard Ltd on their tax claims for which they claimed were in line with HMRC manual EIM21618. ‘At the time, we tried calling HMRC to verify their claims but was unsuccessful.’

Under the B2BTradecard scheme, users claimed tax deductions for buying ‘advertising services’ from B2BTradecard, before getting up to 80% back through prepaid cards without paying any tax. The introducer agreement meant that participant firms received fees based on a fixed percentage of the amounts spent by their clients on the B2B arrangements.

Users of the scheme claim corporation tax deductions for the amounts spent on B2BTradecard advertising. The promotor then returns up to 80% of the advertisement spend to the associated directors or any person chosen by the company via the provision of prepaid debit cards without deductions by the company for income tax or National Insurance contributions (NICs). These amounts are described as ‘loyalty points’ with every 1 point worth £1 to the individual. HMRC’s view is that the redeemed ‘loyalty points’ are ‘disguised remuneration’ and are liable for deductions for income tax and NICs. The B2BTradecard scheme, which was first flagged as tax avoidance in July 2024 by the tax authority, ‘does not work and fails to provide the tax advantages sought’, HMRC stressed, adding it resulted in ‘disguised earnings that should have been taxed like any other income’.  

HMRC has urged any taxpayers involved in a B2BTradecard scheme to contact them to resolve any outstanding tax issues, while it goes without saying that is important to seek independent advice.

Jonathan Smith, director of counter avoidance at HMRC, said: ‘Promoting tax avoidance is unacceptable. Accountants and tax advisors should give their clients sound advice, not steer them towards schemes that can result in large tax bills.

‘Naming the people involved in promoting tax avoidance schemes is a crucial step in helping customers stay clear of current and future schemes they might promote.

‘We understand that facing unexpected tax bills can be stressful and we urge any users of this scheme to contact us immediately so we can help them settle their affairs.’  

To date, HMRC has published details of more than 170 tax avoidance schemes and named more than 170 promoters on the current list of named tax avoidance schemes, promoters, enablers and suppliers.

Anyone who thinks they have been involved in a tax avoidance scheme is advised to discuss the issue with their accountant or tax adviser as a matter of urgency. They can also contact HMRC at [email protected]    

The other firms have been contacted for comment where their details are in the public domain.