HMRC names avoidance schemes for first time

HMRC uses new legal powers to name tax avoidance schemes and their promoters, for the first time. Tax avoidance schemes have been named for the first time by HM Revenue and Customs (HMRC) as users are warned they could face large tax bills. HMRC has today advised anyone involved in Absolute Outsourcing’s or Purple Pay … Continue reading HMRC names avoidance schemes for first time

Health and Social Care Levy to raise billions for NHS and social care

From Wednesday 6th April 2022, the Health and Social Care Levy will begin to raise billions to tackle the Covid backlogs and reform adult social care From Wednesday 6th April 2022, the Health and Social Care Levy comes into effect and begins to raise billions to help tackle the Covid backlogs and reform the adult … Continue reading Health and Social Care Levy to raise billions for NHS and social care

HMRC fraud squad takes back £1 billion from offenders

More than £1 billion has been recovered from the proceeds of crime and tax offenders since the formation of a specialist HM Revenue and Customs (HMRC) fraud squad five years ago.  Launched in April 2016, the department’s Fraud Investigation Service (FIS) has now recovered assets equivalent to funding around 20,000 NHS nurses for an entire … Continue reading HMRC fraud squad takes back £1 billion from offenders

HMRC to name tax avoidance promoters

Naming tax avoidance promoters As part of the approach to support taxpayers to steer clear, or move out, of tax avoidance HMRC plans to publish details of those involved in the supply of mass-marketed tax avoidance schemes and details of the schemes they are selling. This will enable taxpayers to spot avoidance schemes more easily … Continue reading HMRC to name tax avoidance promoters

Crackdown on directors who dissolve companies to evade debts

Rogue directors who dissolve companies and avoid paying liabilities to staff, creditors and the taxpayer can now be disqualified from being a director. The Insolvency Service has new powers to tackle unfit directors who dissolve companies to avoid paying liabilities. The Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Act helps tackle directors dissolving companies to … Continue reading Crackdown on directors who dissolve companies to evade debts

Call for Evidence: umbrella company market

The government has published a call for evidence on the umbrella company market. Umbrellas - what are they? Umbrella companies play a role in the labour market by facilitating the engagement of temporary workers. Umbrella companies employ individuals on behalf of clients and employment businesses. They do not source work for the employee, which is … Continue reading Call for Evidence: umbrella company market

Steps to modernise and simplify UK tax system

As part of Tax Administration and Maintenance Day the government has set out more detail on work to deliver a modern, simple and effective tax system - to help taxpayers get their tax right the first time. The announcements follow the commitment the Chancellor made at Autumn Budget and Spending Review 2021 - for there … Continue reading Steps to modernise and simplify UK tax system

Clamping down on tax avoidance

As part of the Autumn budget 2021 announcements, the government are progression new measures to clamp down on promoters of tax avoidance schemes. The measure is targeted at the most persistent and determined promoters and enablers of tax avoidance. The proposed legislative changes are designed to clamp down on the supply of tax avoidance arrangements. … Continue reading Clamping down on tax avoidance

Improperly obtained bounce-back loan

The traffic commissioner for the West Midlands, Nick Denton, recently held a public inquiry into Mafuwer Logistics Ltd. The company was granted a standard international licence for three vehicles in December 2020. The traffic commissioner found that almost all of the company’s financial resources had been provided by a £50,000 bounceback loan (BBL) in May … Continue reading Improperly obtained bounce-back loan

Reduce risk of using umbrellas who operate tax avoidance schemes

HM Revenue and Customs (HMRC) have issued new guidance to help agencies and employers reduce their risks of using umbrella employers who are operating tax avoidance schemes. Tax avoidance schemes Disguised remuneration schemes These schemes claim to prevent some payments being taxable. They describe taxable earnings paid for doing a job as something that is … Continue reading Reduce risk of using umbrellas who operate tax avoidance schemes

Tax gap low at 5.3%

The HMRC annual Measuring Tax Gaps publication estimates the difference between the total amount of tax expected to be paid and the total amount of tax actually paid during the financial year. The majority of taxpayers pay the tax that is owed. This year’s estimated tax gap at 5.3% represents £35 billion compared to 5% … Continue reading Tax gap low at 5.3%

Using unfunded pension arrangements

In the agent update 87, the HMRC remind agents about an arrangement where a company creates an unfunded pension obligation to pay a director of the company a pension. The company may then transfer their obligation to pay the director a pension to a relative or another individual closely associated with the director. The arrangements … Continue reading Using unfunded pension arrangements

RTI data and Tax avoidance

Question To ask the Chancellor of the Exchequer, whether HMRC uses real time information to close down tax avoidance schemes. Answer Answered on 27 May 2021 HMRC identify new avoidance schemes and the promoters behind those schemes using a range of data and intelligence, including real time information from PAYE systems. HMRC actively monitor the … Continue reading RTI data and Tax avoidance