The Chartered Institute of Payroll Professionals
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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.
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HMRC releases professional standards for compliance activity Published: 27 July 2023 Emailed: 2 August 2023
HM Revenue and Customs (HMRC) has released a policy paper detailing the professional standards expected of their employees when undertaking compliance work.
Written to closely align with HMRC’s Charter , the standards have four key headings: 1. Getting things right
2.
Being aware of our customers’ situation
3. Being responsive - communicating with customers
4. Treating customers fairly.
Each heading has six points on how that objective will be achieved. In addition, there is also a quote for how compliance staff are expected to operate:
“I am accountable for the professionalism and accuracy of my work. I act in accordance with the HMRC and Civil Service values to help me deliver my commitments under the HMRC Charter .”
For those who encounter compliance activity, this will apply a level of accountability for the staff conducting it and allow avenues for complaint should they the standards not be met. The CIPP are pleased to see an ongoing commitment to the charter in more areas of HMRC.
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Named tax avoidance schemes updates Published: 27 July 2023 Emailed: 2 August 2023
HM Revenue and Customs (HMRC) has added a new name to the current list of named tax avoidance schemes, promoters, enablers and suppliers .
The company, Easyway Umbrella Limited, was using the familiar method of making a payment close to National Minimum Wage and topping this up with other remuneration that was not taxed. The disguised payment of a loan or other credit is deemed to be normal income by HMRC and should therefore be taxed. In addition to this an unnamed company, referred to as “Company X” has been added to the list of tax avoidance schemes subject to a stop notice . Here is HMRC’s explanation of how the scheme that promted the stop notice is promoted: Scheme users sign a Contract for Employment and a Master Advance Agreement with Company X. The Contract for Employment says the scheme user will be paid the National Living wage (NLW) for their services which are provided to 3rd party end clients. The Master Advance Agreement provides that Company X will make advances to the scheme user in its capacity as sole trustee of a settlement known as the “Company X Settlement”. Scheme users provide their services to the end client who makes payment for the work done. Company X then pay the scheme user a single payment which is comprised of two elements, the first is a salary at the NLW rate for the hours worked and the second is the advance. Both elements are shown as “income” on the payslip provided by Company X to the user. However, only the salary element is paid after deductions of income tax and National insurance contributions (NICs), whereas the advance element is paid without deductions of income tax and NICs.
It is important to spread awareness of these schemes and to not get caught up in them. But, if you think you are involved in one, you can contact HMRC for assistance and guidance.
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