HMRC names two offshore companies as tax avoidance promoters

HM Revenue and Customs (HMRC) has named two Belize registered companies as promoters of a tax avoidance scheme in the UK.

Minerva Services Ltd and Buckingham Wealth Ltd, who share the same business address in the capital of Belize, were found to be promoting and marketing a tax avoidance scheme known as the Umbrella Remuneration Trust (URT). 

According to HMRC, the scheme used complex, offshore, financial arrangements so that Income Tax and National Insurance contributions were not correctly paid.

The URT received contributions from the scheme users, UK companies and self-employed people who claimed the contribution as a deductible Corporation Tax or Income Tax expense. When the money was transferred back to the user, no taxes were paid.

HMRC published a newsletter that was circulated by Buckingham Wealth Ltd and Minerva Services Ltd to their clients, which encouraged URT users to start making replacement contributions to a newly founded scheme called the Nova Trust. 

The newsletter incorrectly claimed that changing schemes would end HMRC’s investigations but HMRC confirmed this was not the case, and that it is “continuing to challenge these arrangements”.

Mary Aiston, HMRC’s director of Counter Avoidance, said: “These cynically marketed tax avoidance schemes don’t work in the way the promoters claim and users can end up with big tax bills.

“Over the last year we have published the details of 33 tax avoidance schemes and exposed the unscrupulous promoters behind them. HMRC has also published details of 11 Stop Notices issued to promoters, and is consulting on adding a criminal sanction for promoters who breach those notices.”

She added: “We will continue to take strong action against those who promote and market tax avoidance schemes and remain committed to supporting taxpayers to steer clear of or exit tax avoidance.”