HMRC aims to stop tax avoiders from acquiring an advantage, even a temporary advantage, over the majority of taxpayers who don't try to get around the rules.
Revenue & Customs Brief 28/13
Employee bonuses: avoidance scheme involving Restricted Securities
6 November 2013
HM Revenue and Customs has published information about an employee bonuses tax avoidance scheme involving Restricted Securities.
HMRC has won a tribunal involving an attempt to avoid tax and National Insurance contributions on employee bonuses. In LM Ferro Ltd v HMRC a bonus was paid in the form of an award of shares. The decision confirmed HMRC's view that these types of devices to avoid tax simply do not work - if you pay what is really a bonus, tax and National Insurance contributions are due no matter how it is dressed it up. The scheme in LM Ferro was marketed by Powrie Appleby but similar avoidance schemes were marketed by other promoters. HMRC considers cash received by beneficiaries of awards in those schemes is also chargeable to Income Tax and National Insurance contributions. HMRC expects those who used these schemes to make full payment of the tax and National Insurance contributions due, plus interest. Those companies and employees affected should contact HMRC to settle their liabilities and prevent additional interest accruing. You can contact HMRC on Telephone 03000 532624.
Penalties may be charged if you failed to take reasonable care when making returns to HMRC.
Tackling tax avoidance: Spotlights
2 January 2014
'Spotlights' warns you about certain tax avoidance schemes which HMRC thinks you should be aware of. These are just some of the schemes which HMRC believes are being widely offered to help those using them to avoid tax. HMRC is currently improving Spotlights to add more schemes. You should be wary of other types of schemes, not just those listed here. If you are offered a way to pay less tax that sounds too good to be true, it probably is and be aware, HMRC never approves any scheme. You are responsible for making sure that your tax return is correct - so make sure you understand what you are signing up to. If you do use an avoidance scheme you will be subjected to an HMRC enquiry.
Download a briefing about how HMRC is tackling tax avoidance
If you want to report a scheme that you believe has been set up to avoid tax, you should let HMRC know.
Contact HMRC to report a scheme
Update on Contractor Loan tax avoidance schemes
CIPP Policy News Journal
16/04/2014, Page 477 of 519
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