A practising barrister has been publicly named by HM Revenue & Customs (HMRC) as a promoter of tax avoidance schemes – the first time a legal professional has appeared on the government’s official list.
HMRC said Setu Kamal, a barrister with 20 years’ experience, designed four arrangements marketed through umbrella companies that claimed to reduce workers’ Income Tax and National Insurance liabilities. The schemes were promoted by MLG Pay Limited, The Umbrella Agency Limited, Veqta Ltd and Vision HR Solutions Ltd.
According to HMRC, the schemes typically promised workers they could “keep more of their pay” through complex structures, including the use of contract templates created by Kamal. Officials warned that such schemes “do not work” and that those who used them face tax bills, interest and potential penalties.
Jonathan Smith, HMRC’s Director of Counter Avoidance, said legal professionals held positions of responsibility and should not be creating arrangements designed to sidestep tax obligations.
“Legal professionals have a position of trust and responsibility – they shouldn’t be involved in creating schemes that purport to let people avoid paying tax that funds our vital public services.
We want to support those who have used these schemes to exit them and bring their tax position up to date. I urge them to contact us as soon as possible so they can settle their affairs.”
The move signals HMRC’s intent to pursue not only the companies that market and sell avoidance schemes but also the individuals behind them, regardless of professional status.
Tax avoidance schemes are often promoted as clever ways to reduce liabilities but, HMRC warns, they frequently leave users worse off. Common features include loans or advances instead of wages, minimal deductions for tax, or overly complicated payment structures.
Workers employed through umbrella companies are urged to check payslips carefully. HMRC has published an online tool to help workers calculate their pay and spot warning signs of disguised remuneration.
From April 2026, new legislation will make recruitment agencies legally responsible for ensuring Pay As You Earn (PAYE) tax is correctly accounted for when engaging workers through umbrella companies. The change is designed to cut down on fraud and tax avoidance in the sector.
Anyone concerned that they may have been involved in a tax avoidance scheme is advised to contact HMRC directly.
Read more:
Barrister named on HMRC’s tax avoidance promoter list for first time
