GLOBAL PAYROLL MAGAZINE
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or comprehensive. HMRC continues to investigate other so-called promoters of ‘Tax Avoidance’ as part of its effort to close the ‘Tax Gap’. Improving the tax advice market Due to what may be seen as a high number of payroll promoters in the Umbrella space pushing through broken tax avoidance measures and a social media frenzy of Tax Reclaim agents - where most of the claim appeared to be retained by the agent who used some ancient legal financial vehicles which have not been curtailed from use - the UK government was rapidly promoting changes in law to monitor and police the Tax Advice Market. So what has that to do with the UK payroll profession? – Oh, payroll is considered part of the Accountancy Service Provider industry and may well fall smack into the middle of the tax advice market space that is facing mandatory professional membership.
even scams are being marketed and badged as fully compliant, which may be the opposite of the truth. A whole section of Umbrella organisations have been found to be promoting or applying tax avoidance measures which HMRC claims do not work. Often by paying amounts at National Minimum Wage levels with tax and NICs being applied only to those amounts. And then further amounts are paid as tax and NIC-free claiming they are other: fees, loans, options or other types of advances. The risk for the employee is that they may receive a significant taxation bill once all the threads are unwound to show what is really going on. HMRC are investigating a number of promoters of these ‘Tax Avoidance schemes’. Its list of 77 is long yet not full
Author: P Simon Parsons MSc FCIPPdip MBCS
Simon Parsons has been a major contributor to SD Worx’s payroll expertise since 1984. Besides being influential in the development of SD Worx’s payroll services, he is also a key presence on several HMRC consultative groups and committees. A fellow of the
Chartered Institute of Payroll Professionals and one of the original Masters of Science in Payroll Management, Simon is a regular author and speaker on reward and payroll. He is Chair of IReeN, the electronic exchange with government user network, and Honorary Chair of the BCS (the chartered institute of IT) Payroll Specialist Group.
Simon is a regular GPA panellist and contributor. Payroll, HR and Legal Services | SD Worx
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