Petitions have been submitted to Glasgow Sheriff Court seeking the liquidation of T.U Pay and T.U PAYE, with HMRC requesting that the court appoint a liquidator to oversee the process. The action was brought by the Advocate General for Scotland on behalf of HMRC.

Both companies were recently included on HMRC’s published list of organisations linked to suspected tax avoidance schemes. According to HMRC, it has reason to believe that individuals using T.U PAYE’s services, as well as those connected to T.U Pay, may include employees working for the NHS and local authorities.

Financial records show that T.U PAYE reported capital and reserves of £638,628 between March 2025 and February 2026, employing an average of 287 people during that period. T.U Pay’s accounts for the year ending April 2025 showed a deficit in capital and reserves of £349,507, with an average workforce of 157 employees.

HMRC stressed that its published list is not exhaustive and warned that schemes not included should not be considered legitimate or approved, The Herald reports. 

The tax authority also noted that some umbrella companies operate both compliant and non-compliant payroll arrangements, urging anyone who recognises a listed scheme or provider to contact HMRC.

The legal action follows an earlier investigation by The Ferret, which suggested that some NHS and council employees may have unknowingly become involved in disguised tax avoidance arrangements.