HMRC Spotlight Warns Against Tax Avoidance From Unfunded Pensions

HMRC has issued Spotlight 58 which warns against tax avoidance involving unfunded pensions.  The arrangements involve a company creating an unfunded pension obligation to pay one or more of their directors a pension.  This is to create an expense in the company accounts to reduce the company’s profit, and therefore reduce the amount of corporation tax […]

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 […]

HMRC warns against schemes that sells future business revenues to a revenue service trust

HMRC has warned against participating in an arrangement which involves selling future business revenues to a revenue service trust.  Basically, this is another mechanism of disguising your remuneration as something else, and you can read more about this type of scheme here. Under the agreement the trust becomes entitled to a percentage of the business’s […]

New HMRC “Tax avoidance – don’t get caught out” campaign

HMRC have today launched a new education programme “Tax avoidance – don’t get caught out” which aims to help people spot tax avoidance and make sure they understand the risks.  Their campaign is particularly aimed at helping contractors and agency workers. In their report “Use of marketed tax avoidance schemes in the UK”, HMRC state […]

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 […]