HMRC has named two tax avoidance schemes and their promoters for the first time, advising anyone involved to withdraw from them as soon as possible to prevent the build-up of large tax bills.
Both schemes involve individuals working as contractors agreeing to an employment contract under which they are paid the National Minimum Wage (NMW). The balance of their wage is paid as a loan to avoid national insurance and income tax.
HMRC is letting taxpayers know as early as possible so they can steer clear of these schemes or exit them if they have already joined. This is the first time HMRC has used new powers to name tax avoidance schemes and their promoters as part of a campaign to warn the public not to get caught up in tax avoidance.
We have had a client caught out by this scheme and subject to a compliance enquiry by HMRC. Before you sign a contract, I would always suggest you seek advice.
For more information click on this link –Tax Avoidance campaign website HMRC press release
If you would like any advice, please contact us by calling 0115 928 3228 or emailing info@coalesco.co.uk.
