HMRC has warned any contractors who have joined the arrangement told to get out of the complex tax avoidance scheme as soon as possible. 

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 is paid using bank transfers from multiple sources and pre-paid expense cards.

These payments should be subject to income tax and National Insurance contributions (NICs) 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. The LLP also has a UK office in Bristol.

HMRC also suspects that CHSA is involved in further arrangements, potentially including the acquisition of users’ PSCs.

Jason Bougourd and Alizeh Nanji were also named as being in control of Procorre LLP.

Green is currently president of Corre Energy, a global energy storage business and was chairman of global consulting company Procorre until 2016.

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 and it is the users that can end up with unexpected tax bills.

‘We would urge anyone who thinks they have entered these schemes to contact us as soon as possible to get help.’

Procorre has been contacted for comment.

A new criminal offence now applies to promoters of tax avoidance who fail to comply with a Stop Notice under the Promoters of Tax Avoidance Schemes (POTAS) regime in respect of tax avoidance arrangements.

The legislation received Royal Assent on 22 February 2024 and came into effect immediately. This also gives HMRC the power to act more swiftly to disqualify directors of companies involved in promoting tax avoidance.

HMRC urges taxpayers to stay away from tax avoidance. The Don’t Get Caught Out campaign highlights the consequences of using tax avoidance schemes, including unexpected tax bills, interest and penalties.

If anyone has used a tax avoidance scheme promoted by any firm named by HMRC, they should contact HMRC by emailing: [email protected]