Agency and umbrella on taxman's name and shame list

HM Revenue and Customs has published its second 'name and shame' list of tax defaulters, which includes a recruitment agency and an umbrella provider for lower-paid workers.

The first publication received considerable criticism as it targeted many smaller businesses at a time when there was much concern in the media of tax avoidance practices among large international corporations.

Now, HMRC has published its second tax rogues' gallery featuring a list of so-called 'deliberate tax defaulters'. Small builders and local retailers feature prominently among the 15 small firms with tax debts mainly of around between £25,000 and £70,000 but two exceptions where the sums are considerably higher.

Top of the list in terms of tax owing is 'labour services provider' Paymaster Ltd from Birmingham who operated an umbrella scheme for lower-paid workers. They are cited as owing nearly £2 million in tax with just over £1 million in penalties.

Also featured is London-based Alexander Black Recruitment Ltd formerly of Knightsbridge in London with just over £100,000 tax outstanding and £66,000 in penalties.

In order to be 'named and shamed', HMRC must have carried out an investigation and the person has been charged one or more penalties for deliberate defaults, and those penalties involve tax of more than £25,000.