HM Revenue & Customs (HMRC) have this week announced new rules which mean promoters described as ‘high-risk’ must make clear to clients that they are being monitored by the authority. Promoters of tax avoidance can now be subject to financial and reputational penalties that aim to stamp out arrangements designed to minimise tax.
‘Conduct Notices’ will be issued to any promoters who are deemed to be breaking the rules, the notices will communicate with promoters that their behaviors need to be changed. If a Conduct Notice is ignored then a further ‘Monitoring Notice’ will be issued, organisations that have been issued with this second notice will then be named by HMRC, and if they fail to comply fines of up to £1 million could be issued.
Financial Secretary to the Treasury, David Gauke, has said: “The government has taken unprecedented steps to clamp down on tax avoidance” he added “Our tough new rules will force high risk promoters to change their behaviour and help protect taxpayers from unscrupulous advice. Promoters who do not change their ways should be in no doubt – HMRC is taking swift and decisive action to use these new rules.”
HMRC believe they are winning the fight against tax avoidance, under which it seeks to reclaim £7 billion of tax they consider unpaid from participants in tax avoidance schemes.
We recommend that you stay well clear of tax avoidance schemes as you will only become a target for HMRC in the future. If you are a contractor, operating through a Limited Company is enough.
Here at Gorilla Accounting we understand taxation is the necessary evil of contracting through your own Limited Company, we understand that this isn’t were your skills are best utilised. We have listened to feedback from contractors to understand our client’s needs and create a service specifically designed to assist our clients where they need it most.
We offer one single, simple accountancy package – we want to keep it simple so you can be sure of exactly what you get for your money.
Find out more – Gorilla Accounting.
