HMRC has named two tax avoidance schemes and their promoters for the first time,
advising anyone involved to withdraw from them as soon as possible to prevent
the build up of large tax bills.
Both schemes involve individuals working as contractors agreeing to an employment
contract under which they are paid the National Minimum Wage (NMW). The balance
of their wage is paid as a loan to try to avoid national insurance and income
tax.
HMRC is letting taxpayers know as early as possible so they can steer clear of
these schemes or exit them if they have already joined. This is the first time
HMRC has used new powers to name tax avoidance schemes and their promoters as
part of a campaign to warn the public not to get caught up in tax avoidance.
Mary Aiston, Director of Counter Avoidance at HMRC, said:
'These schemes are cynically marketed as clever ways to pay less tax. The
truth is they rarely work in the way the promoters claim and it's the users
that end up with big tax bills.
'New legal powers allow us to name promoters and the schemes they peddle much
faster, and this announcement is just the first step. But we need the public
to be vigilant, and that's why we're also helping people identify and steer
clear of these schemes through our Tax Avoidance – Don't Get Caught Out
campaign.'
Internet link: Tax
Avoidance campaign website HMRC press release