Tax Avoidance Promoters Risk Imprisonment

The government has published draft legislation following their consultation on tougher consequences for promoters of tax avoidance – good news for contractors and temporary workers who are often targeted by such schemes.  The new legislation means that persistent promoters of tax avoidance could be subject to: issue unlimited fines; and up to 2 years imprisonment. […]

Call For Action Against Recruiters Recommending Disguised Remuneration Schemes

HMRC has recently been consulting on “Tougher Sanctions Against Promoters Of Tax Avoidance” which had two main proposals: firstly new criminal offence for promoters who continue marketing a scheme after a stop notice has been issued; and secondly speeding up disqualification of directors of companies involved in promoting tax avoidance schemes. These are both laudable […]

HMRC Names Two More Tax Scheme Promoters

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 […]

Fewer Than Five Tax Scheme Promoters Prosecuted

According to a report by TaxWatch, fewer than five investigations into disguised remuneration tax avoidance schemes resulted in a criminal charge since April 2017.  Shockingly, that’s less than one scheme promoter every year!  And this is despite the fact that HMRC’s own figures that ‘marketed tax avoidance schemes’ account for one third of the UK’s […]

007: The real life impact of the loan charge – hear one person’s story

Today we’re talking to a victim of the loan charge, and it is essential to get this heard by as many people as possible so that others do not have to suffer the same awful experience. There are a lot of misunderstandings about the people who fall victim to the loan charge, with some suggestion […]

006: How to identify tax avoidance schemes that pose as compliant “umbrellas”

Today we’re talking to specialist tax advisor, Tom Wallace of WTT Consulting about tax avoidance schemes which specifically target temporary agency workers and contractors.  These schemes all operate in a similar way to disguise your remuneration as something else which they allege is not taxable.  Often they pose as compliant umbrella firms so it is […]

What is disguised remuneration?

Ordinarily, when a worker employed by an intermediary, such as an umbrella company, they are usually paid their wages after deductions such as pay as you earn tax (PAYE) and national insurance contributions (NIC).  However, some umbrella companies offer alternative ways for workers to receive payments from them. Some umbrellas operate schemes whereby the worker’s […]