HMRC has again updated their list of named tax avoidance schemes and promoters, this time with the addition of Buckingham Wealth Ltd and Minerva Services Ltd. Both of these latest named companies are incorporated in Belize.
Buckingham Wealth Ltd and Minerva Services Ltd operate by paying money into an offshore remuneration trust which is then transferred (usually via another company) to the self-employed person or limited company director. The recipient claims the funds received in this way as ‘loans’ or held monies in a fiduciary capacity, and theoretically not subject to tax. However HMRC has determined that these amounts should be subject to tax, and added the schemes to their list.
HMRC started publishing their list of named tax avoidance schemes in April 2022, and we were initially a very keen supporter of it. However a farcical arrangement has since become apparent whereby HMRC removes companies from the list after they have been on it for 12 months. This means that it is never up to date, and the naming only lasts for 12 months after which the promoters have effectively got away with it.
Please remember that there are many more schemes out there so you can’t solely rely on HMRC’s list, but it is a good starting point. Some interesting names have already been included, and there’s certainly going to be some more high profile names to come.
Despite the farcical removal after 12 months, we always publish updates to HMRC’s list – so make sure you subscribe to our newsletter to keep informed.
