HMRC names Isle of Man firm in tax avoidance scheme

The UK tax office has issued a 'stop notice' as a result

HMRC has named Isle of Man-based company Adapt Limited as a promoter of tax avoidance, citing its involvement in a complex scheme designed to minimise tax liabilities for individuals.

The scheme allegedly operates by routing income through various entities and structuring payments as loans rather than wages, reducing tax obligations.

The director of Adapt Limited, David Michael Yeomans, has also been publicly identified by HMRC in connection with the scheme.

In response, HMRC has issued a "stop notice", legally requiring Adapt Limited to cease the promotion and sale of the tax avoidance scheme.

Adapt Limited is additionally registered under the name TGI Payday Limited at 145 Grimsby Road, Cleethorpes, England, DN35 7DG.

The Isle of Man Financial Services Authority have since released a statement to Manx Radio:

"The Authority monitors reports issued by relevant authorities to help identify connections to persons who may be carrying on regulated or registrable activity in or from the Isle of Man without the required permissions.

"We are aware of the UK HMRC’s list of named tax avoidance schemes, promoters, enablers and suppliers and conduct enquiries and investigations to help enforce the Isle of Man’s regulatory perimeter.

"In this case, we can confirm that Adapt Limited is neither regulated by the Authority to provide financial services, nor registered with us to carry on designated business activity (e.g. lawyers, accountants, tax advisers, payroll agents, money lenders and others). Please see our online register: https://www.iomfsa.im/register-search/

"The matter is being further considered by the Authority to determine whether there has been a breach of any of our requirements. We are not in a position to disclose information in relation to specific cases until the outcome is known and any corresponding action/publication has been agreed under the Authority’s legal powers.

"In terms of whether we consider it likely the UK HMRC will issue more of these stop notices under the current UK Government, to date we have not seen a significant change in approach. However, we will continue to monitor this and will use this information to support our enforcement work."