The Chartered Institute of Payroll Professionals
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New names added to the list of tax avoidance enablers Published: 24 April 2023 Emailed: 26 April 2023
The list of tax avoidance schemes and their promoters issued by HM Revenue and Customs (HMRC) is getting longer. Two new names have been added on 20 April 2023 under the Disclosure of Tax Avoidance Schemes (DOTAS) legislation. The first company, “ Acacia Resourcing Services Limited ”, operated, as many other companies on the list, by paying users around minimum wage levels and then making an additional payment less their fee. The additional payment is claimed to be a capital payment and no tax or National Insurance are deducted. The second company, Marquee Ltd, used a slightly more involved process to disguise the remuneration. Users would sign an option grant agreement with Marquee Ltd which then requires users to enter into an annuity agreement. This separates remuneration into a salary and option grant payment. No tax or National Insurance is deducted from the payment resulting from the option agreement.
As you can see, disguised remuneration schemes are becoming more complex, and companies are exploring new ways to avoid paying tax as fast as HMRC can track them down.
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New additions to the tax avoidance schemes list Published: 12 May 2023 Emailed: 17 May 2023
HM Revenue and Customs (HMRC) has updated the list of named tax avoidance schemes, promoters, enablers and suppliers.
The below schemes have been added as of 11 May 2023:
• Collect Consulting Limited (Incorporated in Isle of Man) • Connections Ltd (Incorporated in Isle of Man) • First Step Consulting Limited (Incorporated in Isle of Man) • Simply Consulting Ltd (Incorporated in Isle of Man) • Total Recruitment Services Ltd (Incorporated in Isle of Man).
A new section 'Evidence of marketing material used by tax avoidance promoters and suppliers' has also been added. This will include, but is not limited to, marketing and communication materials such as emails, letters and newsletters that promoters and suppliers of tax avoidance schemes often use to explain and justify how a scheme is claimed to work.
In addition to this, HMRC recently named two Belize registered companies as promoters of a tax avoidance scheme in the UK. Read more on this here.
Please note that if a tax avoidance scheme is not shown in the list, this does not mean that the scheme works or is in any way approved by HMRC. You can also report a tax avoidance scheme to HMRC.
You can also read more on what you can do to reduce the risk of using a non-compliant umbrella company and how to find out about the warning signs of mini umbrella company fraud.
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