Don't get caught out - HMRC advice to the UK haulage industry regarding how to spot avoidance schemes

Tax avoidance is when people bend the rules of the tax system to try to pay less than they should. But those who join avoidance schemes then end up having to pay the tax due in the first place – as well as interest and potentially penalties.

HMRC wants to stop people being drawn into such schemes as well as help them leave tax avoidance schemes if they believe they might be caught up in one. HMRC is working with a range of organisations to give them the tools to educate contractors on the risks of using tax avoidance schemes.

Everyone is responsible under UK law for paying the correct amount of tax. This still applies where the contractor has appointed someone else to deal with their tax affairs or has been given bad advice – the ultimate responsibility and risk remains with the individual.

The campaign helps contractors who work through an agency or umbrella company to understand their pay arrangements, so they don’t get an unexpected tax bill. There is new guidance to help contractors check how they’re being paid to make sure they’re not involved in tax avoidance.

The campaign also includes an interactive risk checker to allow workers to check whether their current contract could involve tax avoidance.

There are different types of tax avoidance schemes, examples of which can be seen in the published Spotlights series on GOV.UK.

The most relevant Spotlight is Spotlight 60 - published in August 2022, it specifically warns about non-compliant umbrella companies and what to look out for.

Published On: 15/08/2024 14:00:00

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