HMRC’s ‘don’t get caught out’ campaign

HMRC have launched a campaign to advise taxpayers on tax avoidance schemes and to explain the risks involved.

These schemes are typically marketed to contractors and umbrella company employees, and, as agents, we are encouraged to work alongside HMRC to spread awareness and help clients steer clear of tax avoidance schemes.

Spotting the signs of tax avoidance

• Ensure the umbrella company have been accredited and follows a strict ethical code

• Watch out for anything ‘HMRC approved’ as they would never approve an avoidance scheme

• Check HMRC’s website which includes a regularly updated list of named tax avoidance schemes, although this does not list all schemes

• Is the umbrella company based outside the UK? Refer to Companies House for UK companies.

• Make sure you aren’t being asked to sign anything more than an employment contract. It is not standard practice to have additional agreements.

• Look out for whether the company is advertising high take home pay rates - you should receive no more than the net pay on your payslip!

• If it looks too good to be true - it usually is!

How to get out of a tax avoidance scheme

If you find yourself in a tax avoidance scheme, ensure you contact HMRC as soon as possible. The longer you wait to inform them, the bigger the tax bill will be.

HMRC can offer instalment agreements to pay any overdue tax and have multiple support resources to help.

For more information on the campaign please visit the link below:

Further reading:  Don't get caught out

Please do not hesitate to contact us if you find yourself in a tax avoidance scheme or suspect one to has been offered to you. We are always here to help.

Article written by Ffion Bainbridge