HMRC recently released this large number that resulted from tax avoidance schemes across the country. This has in turn led to a cascade of tax investigations to aim and find the taxpayers who avoided paying their taxes.
It was announced that these tax aversion schemes are run by umbrella companies that are non-compliant and do not abide by HMRC’s guidelines of utilising the PAYE (pay as you earn) system to pay their own employees. That on its own raises red flags for HMRC, imagine taking part in this scheme to avoid paying taxes. What are the consequences?
The tax body announced that it has indeed reduced the number of tax avoidance schemes in the country. And warned that about 30-40 promoters are still at large, luring the UK taxpayers into their dangerous scheme. Additionally, the number of UK taxpayers that were utilising income tax reduction schemes is about 30,000 people!
HMRC are serious about stopping these schemes and anyone who intentionally or unintentionally falls under tax avoidance schemes. And could penalise individuals up to £1m.
It’s expected that tax investigations would soar even more, as HMRC aims to put an end to tax avoidance schemes and individuals who take part in them. If you received HMRC’s inquiry envelope, don’t ignore the letter. Make sure you have professional representation (Accountant) who can handle your tax investigation for you.
