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The Trust received contributions from the scheme users, UK companies and self-employed people who claimed the contribution as a deductible corporation tax or income tax expense. When the money was transferred back to the user, no taxes were paid.
Mary Aiston, HMRC’s Director of Counter Avoidance, said:
"These cynically marketed tax avoidance schemes don’t work in the way the promoters claim and users can end up with big tax bills.
Over the last year we have published the details of 33 tax avoidance schemes and exposed the unscrupulous promoters behind them. HMRC has also published details of 11 Stop Notices issued to promoters, and is consulting on adding a criminal sanction for promoters who breach those notices.
We will continue to take strong action against those who promote and market tax avoidance schemes and remain committed to supporting taxpayers to steer clear of or exit tax avoidance. ’’
HMRC is encouraging taxpayers to be vigilant and to stay out of tax avoidance. A campaign called ‘ Don't Get Caught Out ’ has been set up, to help remind taxpayers that the consequences of using tax avoidance schemes can be severe, including additional taxes, interest and penalties, as well as reputational damage. Further information can be found on HMRC’s list of named tax avoidance schemes, promoters, enablers and suppliers. 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.
In addition to this, HMRC’s interactive risk checker tool can be used to find out if certain employment arrangements could involve tax avoidance.
Employees can also check their payslips using HMRC’s payslip guidance and make sure they are not involved in a tax avoidance scheme, operated by umbrella companies.
Read the full press release here.
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Employment Related Securities Bulletin Published: 12 May 2023 Emailed: 17 May 2023
The Employment Related Securities Bulletin 50 has been published by HM Revenue and Customs (HMRC). The guidance outlines any changes to restrictions in Enterprise Management Incentives (EMI) options agreements and working time declarations. Limited companies may gift company shares to employees (including directors) as a method of reward or incentive. These are known as Employee Related Securities (ERS). An employee not paying tax or National Insurance (NI) on the value of the share(s) received can be seen as a tax advantage. Some ERS schemes with this tax advantage include: • Share Incentive Plans (SIP) • Save as You Earn (SAYE) • Company Share Option Plans (CSOP) • Enterprise Management Incentives (EMIs). On the other hand, a non-tax advantaged scheme means employees are liable to income tax when they exercise the option on the shares granted to them. Below are the key points covered in the HMRC guidance. Year-end reporting deadline An end of year ERS return must be filed if an employee share scheme is operated. • for the 2022/23 tax year an end of year ERS return must be submitted (on or before) 6 July 2023 • a return or nil return must be submitted for every scheme that has been registered on the ERS online service • the scheme must be ceased, if registered in error or if it is no longer operating. However an annual return for the tax year in which the final event date falls must still be filed. Penalties • a £100 penalty will be issued automatically if the end of year ERS return, including nil returns is not submitted by 6 July 2023
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