Tax Avoidance

How to get Non-Statutory Clearance Applications right first time

Accountancy firms and tax professionals often face situations where the tax treatment of a transaction is unclear. In such cases, a Non-Statutory Clearance application can be submitted to HMRC to seek their interpretation of the relevant tax legislation. However, this process is fraught with challenges, and many applications are rejected…

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PCS welcomes chancellor’s promise to recruit 5,000 HMRC staff

The Public and Commercial Services Union (PCS) has welcomed chancellor Rachel Reeves’ promise to recruit 5,000 new compliance officers in a bid to tackle tax avoidance and evasion.  In her speech at the Labour Party conference this week, Reeves said: “We will end the non-dom tax loopholes and we will…

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Tax investigations a constant threat for landlords in today’s data-rich world

Landlords have long been under the scrutiny of HMRC due to the widespread issue of undeclared income from additional properties. The revenue authority’s campaigns targeting this sector have become increasingly robust, posing significant risks for individuals with second properties. HMRC have consistently targeted landlords to ensure compliance with tax regulations.…

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HMRC opened 1,091 serious tax investigations in 2023

HMRC has opened 1,091 serious tax investigations in the last year to March 31 2023, according to multinational law firm Pinsent Masons.  Known as ‘COP8’ and COP9’ investigations, these probes reportedly provide an opportunity for taxpayers to avoid the heaviest penalties, including prison sentences, if they cooperate fully with HMRC. …

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Autumn Statement: what to expect 

“As a professional body representing SME accountants who work with SME business clients, we have a keen eye focused on the Autumn Statement,” says Jonathan Barber, executive director – UK from The Institute of Financial Accountants (IFA). “It is clear that this statement will be challenging for the Chancellor, seeking…

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HMRC should maintain responsibility for tax debt, REC warns

The Recruitment and employment Confederation (REC) is calling on the government to stay focussed on regulating umbrella companies and scrap its proposal to “pass the buck” of umbrella tax debt to employment businesses. The REC responded to the consultation in which the Treasury suggests ways to lessen tax non-compliance such…

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HMRC investigations yield £34bn this year

HMRC’s annual report has revealed that its investigations into tax evasion and tax avoidance have yielded a total of £34bn in extra tax revenue over the last year, up from £30.8bn the year before. According to law firm Pinsent Masons, £2.7bn of that total came from income tax investigations into…

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Tax campaigners issue warning over ‘stooge’ directors

The Low Incomes Tax Reform Group (LITRG) has issued a warning to people on lower incomes of the potential risks when answering an advert to become a director of a company in exchange for a fee, as it may be a form of tax avoidance.  The tax campaigners’ warning is…

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Two companies face £100k fine over tax avoidance schemes

Two companies have been ordered to stop selling specific tax avoidance schemes immediately or else face an initial penalty of £100,000, HMRC has warned. The authority said it has issued Stop Notices to Peak PAYE Ltd and Saxonside Ltd for promoting disguised remuneration schemes designed to avoid paying National Insurance…

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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…

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