The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
matter beyond doubt, the government announced that legislation will be introduced in Finance Bill 2016 that comes into effect from 16 March 2016.
HMRC will investigate tax returns where these schemes have been used and seek full settlement of the tax due, plus interest. HMRC will also seek penalties where appropriate.
Taxpayers who have used these schemes should also make themselves aware of wider changes announced in Budget 2016 to tackle usage of disguised remuneration schemes. The government will introduce legislation to ensure that all loans, debts or obligations arising from a disguised remuneration scheme, irrespective of how the scheme claims to work, will be taxed as earnings if they haven’t already been taxed or repaid by 5 April 2019. More detail is set out in the technical note published at Budget 2016, in particular paragraph 4 of chapter 4 and example 1. If you’re ever tempted to enter an avoidance scheme, remember that you can end up significantly worse off. HMRC published guidance on those Tempted by Tax Avoidance and publications that guide taxpayers through the misleading statements promoters may make. If the scheme looks too good to be true, it almost certainly is: being paid in gold bullion is clearly extremely unusual and should be a warning to anyone looking at this kind of scheme not to get involved.
To get out of a gold bullion tax avoidance scheme before HMRC challenges the arrangements in court, and you don’t have a contact, you should email: ca.admin@hmrc.gsi.gov.uk .
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HMRC naming and shaming deliberate tax defaulters 12 July 2016
HMRC continue to publish their quarterly list of those who have deliberately defaulted on their tax responsibilities.
Subject to certain stringent conditions, anyone who has deliberately defaulted on their tax responsibilities will have their details published by HMRC.
These are people who have received penalties either for:
deliberate errors in their tax returns
deliberately failing to comply with their tax obligations.
The law that allows this is Section 94 Finance Act 2009.
HMRC may publish information about a deliberate tax defaulter where:
HMRC have carried out an investigation and the person has been charged one or more penalties for deliberate defaults those penalties involve tax of more than £25,000.
However, their information won’t be published if the person earns the maximum reduction of the penalties by fully disclosing details of the defaults.
The law requires that HMRC do not publish any information about the person for more than 12 months from the date they first publish it, and the lists of deliberate tax defaulters won’t be captured for the National Archives.
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Tackling Disguised Remuneration: technical consultation 16 August 2016
At Budget 2016 the government announced a package of changes to tackle disguised remuneration avoidance schemes to ensure users of these arrangements pay their fair share of income tax and National Insurance contributions.
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