HMRC and the Advertising Standards Agency (ASA) have launched a joint initiative to control the use of misleading advertising which may tempt individuals into using a tax avoidance scheme. Keep reading to find out more.
Mini umbrella company’s (MUC) are the latest type of tax avoidance schemes to target the temporary labour market. MUC’s, like other avoidance schemes, reduce the amount of tax you pay to HMRC and can pose a severe financial risk to anyone engaging with them.
On the 26th November, HMRC published a report entitled: Use of marketed tax avoidance schemes in the UK. The report discusses how the UK has seen a significant shift in the way promoters of tax avoidance schemes are targeting individuals, and the steps the government are taking to tackle tax avoidance.
Contractor facing the reality of the 2019 Loan Charge is required to pay back £180,000 in underpaid tax
Thousands of self-employed individuals are now facing significant tax bills as the government step up their efforts to reclaim underpaid tax via the controversial Loan Charge.
Some contractors that are employed through agencies and umbrella companies are signing up to arrangements that claim to maximise their take-home pay and retain up to 90% of their income after tax and NI. But these are clearly tax avoidance schemes.
HMRC is on the path to take down the practice of tax avoidance and tax evasion by introducing measures preventing taxpayers from taking advantage of the system.