`The Chartered Institute of Payroll Professionals
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Hyrax Resourcing Ltd has been issued a £1 million fine for engaging in the promotion of a tax avoidance scheme. Her Majesty’s Revenue and Customs (HMRC) has been showing concerted efforts recently to tackle and prevent wilful non-compliance activity.
HMRC’s director of counter -avoidance, Mary Aiston, said:
“ This £1 million fine should serve as a stark warning to tax avoidance promoters. Those who ignore their legal duty will face serious consequences. We actively tackle promoters of tax avoidance schemes and are determined to drive them out of business. We continue to use the full force of the law to challenge tax avoidance scheme promoters .” The company failed to disclose its involvement in a disguised remuneration scheme where users were paid national minimum wage and the remainder of earnings paid as untaxed loans. This is similar to other schemes on HMRC’s list of tax avoidance schemes, promotors, enablers and suppliers.
Hyrax Resourcing Ltd was fined the maximum of £600 per day that the avoidance scheme was undisclosed. At a total of 1,791 days, this resulted in a fine of £1,074,600.
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HMRC to investigate Next over minimum wage compliance Published: 8 August 2022 Emailed: 10 August 2022
Next recently changed payroll systems from an in-house system to Oracle, a US based group. During this rollout, thousands of payroll errors were made, resulting in some overpayments as well as underpayments.
Her Majesty’s Revenue and Customs (HMRC) will now be conducting an investigation to determine if any Next workers received less than the £9.50 National Living Wage for those aged 23 and over.
Next have indicated that they have implemented systems to check Oracles output, reducing errors in the lasts payroll to 219 out of 43,000 workers.
The fashion retailer came under fire for the recent errors as inflation in the UK hits the highest it has for decades. Payroll errors caused by the system implementation resulted in benefits being withheld, and some staff indicating they could not afford to get to work. HMRC have been increasing compliance activity in many areas recently and minimum age compliance is no exception. Those who fail to follow National Minimum Wage guidance can find themselves “ named and shamed ” by the Department for Business, Energy and Industrial Strategy (BEIS).
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Three new tax avoidance promoters named Published: 19 August 2022 Emailed: 24 August 2022
Her Majesty’s Revenue and Customs (HMRC) has been increasing enforcemen t activity in the tax avoidance area for a while now. Its list of tax avoidance schemes and its promoters is updated with new companies to assist workers and other businesses withdrawing from them.
The three new additions are:
ContractorCare Ltd
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PAYEme Ltd
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Gateway Outsource Solutions Ltd
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These schemes typically make a payment at National Minimum Wage and make a second payment in a way that disguises it. HMRC has named a total of 14 tax avoidance promotors and promises that further names will be added “in the coming weeks”.
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