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Policy Paper Published 14 Nov 2025 HM Revenue & Customs ↗ View on GOV.UK

HMRC issue briefing: tax fraud warning for employment agencies and employers

This briefing explains new fraudulent models which are being marketed to employers and recruitment agencies offering ‘cheaper’ payroll services involving tax credits to reduce liabilities for employers.

▤ Verbatim text from source document

HMRC is aware that businesses are being approached by organisations offering models which falsely claim to be able to reduce employment costs through ‘tax credits’ offset from third party businesses they have acquired. HMRC considers these arrangements tax evasion.