Tax avoidance scheme exposed by HMRC

HMRC has exposed a tax avoidance scheme which is being promoted by London-based firm Peak PAYE Ltd.

Those using this tax avoidance scheme, perhaps unwittingly, are being urged to withdraw from it and contact HMRC as soon as possible to ensure that they don’t end up with large tax bills.

This promotor promised its users that they can avoid paying NI and income tax – they do this by paying the contractor National Minimum Wage, and then paying the remainder of the contractor’s wage disguised as a financial option or as a salary advance.

HMRC has now published the details of three tax avoidance schemes and their promoters and will continue to add to this list in the coming months – it’s worth noting that this is not a complete list of all tax avoidance schemes currently being marketed.

Mary Aiston, Director of Counter Avoidance, HMRC, said, “Tax avoidance schemes are advertised as clever ways to pay less tax when in reality, they rarely work as the promoters promise, and it is the users that end up with big tax bills.

“Naming tax avoidance promoters is one of the many steps we are taking to disrupt and drive scheme promoters out of business. We want to help ensure customers do not get caught out by tax avoidance.”

To find out more about contracting please contact Jaime on 01206 591 000 or email jaime.thorpe@contractorumbrella.com.