evasion, but simply be due to error or ignorance. This sort of ‘creep’ has started in some recent legislative measures and proposals, applying comparable time limits and sanctions (penalties) for both deliberate and non-deliberate errors. In our view this is inappropriate, and sets a dangerous precedent for future measures.”
For further details, read the full press release from the CIOT.
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Umbrella companies offering to increase your take home pay 31 August 2018
Some people that are employed through agencies and umbrella companies are signing up to arrangements that claim to save them tax, but are in effect tax avoidance schemes.
Most employment agencies and umbrella companies operate within the tax rules. However, some umbrella companies and agencies promote arrangements that claim to be a ‘legitimate’ or a ‘tax efficient’ way of keeping more of your income by reducing your tax liability.
These arrangements leave you at risk because you are ultimately responsible for your tax affairs and for paying the correct amount of tax and National Insurance contributions.
These types of arrangements are likely to result in you paying additional tax, interest and perhaps penalties, and are never HMRC approved.
HMRC has recently published guidance on this type of avoidance scheme, which covers:
• How these arrangements work • How payments are made • The risks of using these schemes • What you should if you’re involved in these types of arrangements • Back to Contents
Published details of deliberate tax defaulters 24 September 2018
Topping the bill in the latest list of deliberate tax defaulters is a ‘Telecommunications Activities’ company which has been charged just over £2.7 million in penalties for deliberating defaulting on over £4.3 million in tax payments between 1 May 2015 to 31 Jul 2015.
The table below shows the top 3 in relation to the amount of tax owed and penalties charged.
Total amount of tax/duty on which penalties are based
Total amount of penalties charged
Business Trade or Occupation Telecommunications Activities
Name
Period of Default
MY.KLT Ltd
1 May 2015 to 31 Jul 2015
£4,307,468.23
£2,713,704.98
Ekey Technology Ltd Spectrum Contracting Services Ltd
Online Trader
1 Dec 2015 to 28 Feb 2017 £3,778,664.00
£2,645,064.80
Recruitment Agency for the Construction Industry
6 Nov 2013 to 5 Apr 2016
£2,515,052.00
£1,408,429.12
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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