T2 Outsourcing Limited
- Promotor of Scheme: T2 Outsourcing Limited (T2)
- Address: Unit 5, Connect Business Village, Derby Road, Liverpool, L5 9PR
- Publication Date: 7 July 2022
- Scheme Reference Number (SRN) and date it was allocated: 28632053, 27 April 2022
- HMRC’s Scheme Description: “The scheme user enters an employment contract with T2 who make composite payments to the scheme users for services provided by the user. The first element is a National Minimum Wage (NMW) salary that is subjected to tax and National Insurance Contributions (NICs), and a secondary element described as an “advance drawdown” which is not.”
T2 Outsourcing Limited – more details
The HMRC website states the scheme operates as follows:
- The scheme user enters an employment contract with T2, which states that T2 will pay the employee at a rate equivalent to the NMW (or Living Wage).
- Scheme users forward timesheets to T2, and T2 then invoices the recruitment agency or end client for the services provided by the scheme user.
- T2 retains between 18% and 22% of the gross contract value invoiced to the recruitment agency or end client as their fee.
- T2 then makes a single payment to the scheme user’s bank account which is the aggregate of:
- salary for the hours worked in line with NMW hourly rate which is paid net of tax and NICs.
- the remaining balance described as an advance drawdown’ which is notified by an ‘advance advice note’ to the user – this secondary element is made without being subjected to deductions of tax and NICs.
For more information, visit the following page on the government’s website: Current list of named tax avoidance schemes, promoters, enablers and suppliers.