HMRC settlement

HMRC has issued a warning about agency and umbrella companies offering to reduce workers’ tax liabilities and increase take home pay as they are in effect tax avoidance schemes.

Unsurprisingly many people try to minimise contact with HMRC, however there are certain situations when it’s a good idea to proactively engage with them to avoid further difficulties or indeed penalties.

HMRC is including trusts such as Employee Benefit Trusts (EBTs) within the Requirement to Correct legislation. If you have put in place tax planning arrangements which use trusts then you need to be aware a deadline is looming.

HMRC has written to tax agents to update them on payment terms for settlement of disguised remuneration avoidance cases ahead of the loan charge which arises in April 2019.

HMRC has set out how it is tackling non-compliance to ensure all taxes owed by individuals and companies are paid.

HMRC has been contacting accountants and tax agents to let them know that it has become aware of a number of arrangements being promoted which claim to enable users to escape the 2019 loan charge.

Time is running out for users of trust based tax planning arrangements to register their interest in settlement with HMRC. Missing the May 31st deadline may be expensive as it could mean incurring the 2019 loan charge before settlement can be finalised.

HMRC has opened a consultation into exploring ways to tackle those who deliberately abuse the insolvency regime in trying to avoid or evade their tax liabilities, including through the use of phoenix companies.

HMRC has won a tax avoidance case potentially worth £55 million after businesses issued loan notes as bonuses to avoid tax.