HMRC has published details of two schemes run by Payeworx and SmartPay, which break employment tax laws, but both agencies can continue to offer the schemes as there is no penalty for offering them.

There are now over 60 umbrella companies on the list of agencies paying staff tax free but so far none of the businesses have been taken to court by HMRC to strike them off or wind up the business.

Payeworx is based in Warrington and was set up in 2019 by director Liam Derek Blackmore; it also trades as Contractor Buddy PCC Limited, located in the Isle of Man, which only has a holding page on the internet and no details about directors, although it was also set up in 2019.