Government agency identifies barrister in tax evasion blacklist for initial inclusion

HMRC Adds Tax Barrister to List of Tax Avoidance Promoters

The UK's tax authority, HM Revenue and Customs (HMRC), has added Setu Kamal, a tax barrister, to its list of tax avoidance promoters. This marks the first time a barrister has been included on the list.

HMRC's director of counter avoidance, Jonathan Smith, stated that legal professionals, especially those in positions of trust and responsibility, should not be involved in creating tax avoidance schemes. Smith reiterated this stance, saying, "Legal professionals, especially those in positions of trust and responsibility, should not be involved in creating tax avoidance schemes."

Setu Kamal, who was contacted for a comment on the matter, practiced at Old Square Tax Chambers from 2005 till 2024 and is now a sole practitioner. He is accused of designing four tax avoidance schemes: MLG Pay Limited, The Umbrella Agency Limited, Veqta Ltd, and Vision HR Solutions Ltd.

As of 4 September, HMRC has published details of over 170 tax avoidance schemes and named over 170 promoters, including Setu Kamal. These schemes typically promised workers they could keep more of their pay by avoiding income tax and national insurance contributions.

The Labour government is cracking down on tax evasion, with plans to raise over £1bn in additional gross tax revenue by targeting 'evaders'. Rachel Reeves, a member of the Labour government, revealed these plans.

HMRC is not just targeting companies but is also after those who are behind them, "no matter their status". In the 2022-23 financial year, the UK tax gap was £5.5bn, which was considerably lower than in similar economies.

In a statement earlier this year, HMRC acknowledged that the true scale of tax evasion is likely far higher than its estimates. In response, the authority has been urging those who have used the tax avoidance schemes designed by Setu Kamal to exit them and bring their tax position up-to-date.

The crackdown on tax evasion comes as the Labour government looks to close loopholes and ensure that everyone pays their fair share of taxes. As the case of Setu Kamal demonstrates, HMRC is taking action against those who design and promote tax avoidance schemes.

Government agency identifies barrister in tax evasion blacklist for initial inclusion