HM Revenue and Customs (HMRC) has disclosed yet another tax avoidance scam, in order to protect customers from hefty tax liabilities.
Individuals who are participating in a tax avoidance scheme run by Peak PAYE Ltd are urged to discontinue their participation and contact HMRC as soon as possible.
HMRC has employed new powers as part of its Don’t Get Caught Out campaign, and this newest revelation of a tax avoidance scheme promoter follows on from that.
Peak PAYE Ltd, of 86-90 Paul Street, London, EC2A 4NE, is the identified tax avoidance promoter.
This promoter assured its users that they could avoid paying National Insurance and Income Tax by paying contractors the National Minimum Remuneration and then paying the remainder of the contractors’ wage disguised as a financial option or a salary advance.
Mary Aiston, HMRC’s Director of Counter Avoidance, 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.”
HMRC has already revealed information about three tax avoidance schemes and their promoters, and it will continue to do so in the coming months. This is not an exhaustive list of all tax evasion techniques currently on the market, nor of all promoters, facilitators, and suppliers. HMRC advises against participating in any avoidance schemes.
This isn’t the only way HMRC makes sure customers aren’t caught off guard by tax evasion. HMRC also recently won two separate tribunal proceedings against AML Tax (UK) Ltd, a tax avoidance firm owned by the Knox Group. Following a £150,000 penalties for not giving HMRC with essential information, AML Tax (UK) Ltd was successfully challenged over its failure to submit details of three avoidance schemes.
While one panel found director Arthur Lancaster’s testimony to be “inconsistent with the documentary evidence” and “disingenuous,” both lower-tier judges found AML Tax (UK) Ltd should have disclosed the facts of three tax avoidance schemes they advocated, and they were unable to appeal.
Customers can use HMRC’s Tax Avoidance – Don’t Get Caught Out campaign to help them avoid avoidance schemes, including an interactive risk checker, payslip guidelines, and case studies highlighting the hazards of becoming engaged in a tax avoidance scheme and the warning indicators to look out for.
Customers who suspect they are engaging in a tax evasion scheme can report HMRC as soon as possible by phoning 03000 534 226. Customers who have been pushed to join a tax avoidance plan or who have come into touch with someone peddling tax avoidance schemes should also report them to HMRC, according to HMRC.