As part of the Spring Statement 2025, the government have launched a consultation on Closing in on Promoters of tax avoidance schemes.
James Murray MP, Exchequer Secretary to the Treasury states:
[The] Autumn Budget 2024 marked a step change in the government’s ambition to close the tax gap. The government announced it would take stronger action against promoters of marketed tax avoidance. I am therefore pleased to publish this consultation on Closing in on Promoters of Marketed Tax Avoidance.
Closing the tax gap and making sure everyone is paying the tax they owe is one of my top priorities for HMRC. It is vital that these revenues are collected to fund our essential public services and make the tax system fairer. Our tax system is built on the principles of fairness, trust and compliance, and the actions of promoters of marketed tax avoidance facilitate non-compliance and contribute to the tax gap. These efforts to game the system generate no additional value for the economy and deprive vital public services of funding. It is crucial that we uphold these principles by closing in on promoters of marketed avoidance and end their activities altogether.
This consultation seeks views on a range of measures to enhance HMRC’s ability to counteract promoters and their schemes, which will enable HMRC to take decisive action against them. These include expanding the scope of the Disclosure of Tax Avoidance Schemes (DOTAS) regime, introducing new tools like the Universal Stop Notice (USN) and the Promoter Action Notice (PAN), and implementing stronger information powers. Additionally, steps are proposed to tackle the involvement of legal professionals in these schemes.
I welcome views on these proposals, which represent a significant step forward in our efforts to close the tax gap. The government’s longer-term ambition is to design out tax non-compliance and make the tax system easier and quicker to deal with for taxpayers, delivering the modern and digital service businesses and individuals expect in the 21st century. I believe that these changes will not only protect the exchequer and the tax system but uphold their reputation and ensure a level playing field for all.
I invite all stakeholders, professional bodies, and taxpayers to engage with this consultation and share their views. Your feedback is vital in shaping a tax system that is fair, efficient and trusted by all.
PAYadvice.UK 27/3/2025