Press release -

Insolvency Service (National): Umbrella tax companies taken out of service

Following an investigation by The Insolvency Service, two companies Sunday Solutions Limited and Bradbury & Co Limited, each involved in a tax umbrella scheme called the Sunday Solutions Scheme, for self employed consultants, have been ordered into liquidation in the High Court on grounds of public interest.

Company Investigations found the scheme was marketed to prospective clients, mostly IT consultants, as a partnership whereby their tax liabilities would be deducted from the income collected for them and then be retained in a partnership bank account to pay their taxes when due. An estimated £80 million was handled by the scheme but many of the 1500 consultants who used the service did not have their tax liabilities paid and remain liable for the unpaid tax.

The directors of the companies failed to fully co-operate with the investigation which identified over 100 bank accounts, ostensibly opened for each of the so called partnerships. In addition, the scheme was marketed to prospective clients as a membership of Limited Liability Partnership but no LLP names were registered at Companies House. The investigation also found that excessive and arbitrary fees were levied for the service, in some cases up to 30 per cent of a client’s earnings.

Numerous complaints were made to the companies by clients. As no action was taken to address their concerns, an action group, SundayBradbury was formed by disgruntled former clients.

In ordering the companies into liquidation Ms Registrar Barber said that whilst the companies do not admit the allegations, they do not oppose the winding up, and that she was satisfied for all the reasons alleged by the Secretary of State that it was expedient in the public interest that the companies be wound up on grounds of public interest.

Commenting on the cases Investigations Supervisor Chris Mayhew said:

Anyone considering using an umbrella tax scheme needs to be confident that they are using a reputable company. The action taken in this matter sends a clear message: if you run a company that adopts unscrupulous business practices, we will investigate and where necessary take action to close them down”.

Ends

Notes to editors

1. Sunday Solutions Limited was incorporated on 19 September 2005. The registered office of the company is at Pembroke House, 
15 Pembroke Road, ClIifton, Bristol, BS8 3BA.

Bradbury & Co Limited was incorporated on 6 July 1995. The registered office of the company is 16 Shearway Business Park 
Folkestone, Kent CT19 4RK.

3. The Action Group (sundaybradbury@yahoo.co.uk) was formed to try and recover money deducted and retained by the Sunday Solutions Scheme.

4. The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. The Service also authorises and regulates the insolvency profession; deals with disqualification of directors in corporate failures; assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees; provides banking and investment services for bankruptcy and liquidation estate funds; and advises ministers and other government departments on insolvency law and practice. Further information about the work of The Insolvency Service is available from http://www.insolvency.gov.uk.

5. Umbrella service companies generally provide payroll, invoicing, accountancy and taxation services delegated to them by consultants.

6. All public enquiries concerning the affairs of the company should be made to: The Official Receiver, Public Interest Unit , Tel No 0207 637 110: Email: piu.or@insolvency.gsi.gov.uk

7. Media enquiries should be directed to: -

Denise Rawls, Press Office Manager 020 7637 6279

Ade Daramy, Press Officer 020 7596 6187

Notes to editors

1. Sunday Solutions Limited was incorporated on 19 September 2005. The registered office of the company is at Pembroke House, 
15 Pembroke Road, ClIifton, Bristol, BS8 3BA.

Bradbury & Co Limited was incorporated on 6 July 1995. The registered office of the company is 16 Shearway Business Park 
Folkestone, Kent CT19 4RK.

3. The Action Group (sundaybradbury@yahoo.co.uk) was formed to try and recover money deducted and retained by the Sunday Solutions Scheme.

4. The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. The Service also authorises and regulates the insolvency profession; deals with disqualification of directors in corporate failures; assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees; provides banking and investment services for bankruptcy and liquidation estate funds; and advises ministers and other government departments on insolvency law and practice. Further information about the work of The Insolvency Service is available from http://www.insolvency.gov.uk.

5. Umbrella service companies generally provide payroll, invoicing, accountancy and taxation services delegated to them by consultants.

6. All public enquiries concerning the affairs of the company should be made to: The Official Receiver, Public Interest Unit , Tel No 0207 637 110: Email: piu.or@insolvency.gsi.gov.uk

7. Media enquiries should be directed to: -

Denise Rawls, Press Office Manager 020 7637 6279

Ade Daramy, Press Officer 020 7596 6187

ContactsNDS Enquiries 
Phone: For enquiries please contact the issuing dept 
ndsenquiries@coi.gsi.gov.uk

Topics

  • Government

Categories

  • insolvency service (national)
  • umbrella tax companies