HMRC Names Barrister Setu Kamal as Tax Avoidance Promoter
In a landmark move, HM Revenue and Customs (HMRC) has added practising barrister Setu Kamal to its list of tax avoidance promoters. This marks the first time a legal professional has been publicly identified in this capacity.
Legal Professional Under Scrutiny
Setu Kamal, a barrister with two decades of experience, is alleged to have designed four tax avoidance schemes and created contract templates integral to their operation.
These schemes were promoted through companies including MLG Pay Limited, The Umbrella Agency Limited, Veqta Ltd, and Vision HR Solutions Ltd.
They typically promised workers the ability to retain more of their pay by circumventing Income Tax and National Insurance contributions.
HMRC asserts that these arrangements do not function as claimed and that users face potential tax liabilities, interest, and penalties.
HMRC’s Stance
Jonathan Smith, HMRC’s Director of Counter Avoidance, stated: “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.”
Broader Implications
This development underscores HMRC’s commitment to targeting not only the businesses promoting duty avoidance schemes but also the individuals behind them, irrespective of their professional status.
Duty avoidance schemes are frequently touted as clever ways to reduce duty arrears but constantly fail to deliver as promised. druggies may end up facing higher duty bills than anticipated.
Numerous of these arrangements operate through marquee companies. Workers sharing in similar schemes should scrutinise their payslips for advising signs, including loans rather than stipends, minimum duty deductions, or complex payment structures.
A tool is available on GOV.UK to help workers assess their pay from a marquee company.
Legislative Changes Ahead
From April 2026, new legislation will hold reclamation agencies responsible for accounting for Pay As You Earn( PAYE) on workers’ pay when using marquee companies.
Individuals concerned about their involvement in duty avoidance schemes are encouraged to communicate with HMRC.
As of 4 September 2025, HMRC has published details of further than 170 duty avoidance schemes and named over 170 promoters. The full list is available on GOV.UK.
This action reflects the government’s ongoing commitment to driving duty avoidance and fraud, as substantiated by recent consultations and legislative proposals aimed at strengthening enforcement and responsibility.
Workers should also be aware of HMRC’s expanded powers to recover owed taxes, including direct access to bank accounts, which has raised concern among some taxpayers, with new rules showing how the taxman can collect debts automatically.
