HMRC – More sanctions against tax avoidance schemes 1


UK tax return form

Since 2010 there have been 42 changes to tax law to close loop holes and deter tax avoidance.

Key changes were Accelerated Payments and High Risk Promoter Rules.

There is new consultation document out now ‘Strengthening sanctions for tax avoidance’ which runs till 12th March 2015.

A serial avoider may:

  • Use a number of tax avoidance schemes each year that were intended to offset their tax liability several times over in the hope that at least one will work.
  • Repeatedly use tax avoidance schemes to shelter the same type of income year after year.
  • Repeatedly use avoidance schemes to cover the majority of income or gains as they arise.
  • Often use tax avoidance schemes to cover major life or commercial events.

The new sanctions are expected to include:

  • Surcharges on repeated or concurrent use of tax avoidance schemes
  • Being compelled to provide more documents and records
  • Stop notices
  • Name and shame

Will this end the use of tax avoidance schemes?

steve@bicknells.net

 

One comment

  1. Good Morning Thanks for all the informative emails.Can I please ask if NEST is a good way to invest for pensions.I will start from scratch and self employed.Thanks for your time Kind Regards  Nita A Jain 36 Leopold AvenueHandsworth Wood Birmingham B20 1ES +44 121 2412688 +44 79545 63071

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