HMRC warns businesses about ‘Bills of Exchange’ tax payment schemes

HMRC has issued a warning to business owners after becoming aware of schemes promoting the use of Bills of Exchange as an alternative way to settle tax liabilities.

These arrangements are being marketed as a legitimate method of paying tax. However, HMRC has made it clear that it does not accept Bills of Exchange as payment for tax debts and considers these schemes to be fraudulent.

Businesses using these arrangements remain liable for the original tax, together with any interest and penalties that may arise. In more serious cases, those involved could also face a criminal investigation where fraud is suspected.

Please do not be taken in by anyone claiming they can eliminate or settle tax debts using Bills of Exchange or similar arrangements. Promoters may use terms such as “money orders”, “Public Trusts”, “Merchant Law” or “Negotiable Instruments” to make these schemes appear legitimate.

If you are approached with any arrangement that claims to replace normal tax payment methods, please just don’t be taken in, no matter how legitimate it all sounds.  Ask us about it, and we’ll check it for you.

If you have any questions or concerns about a tax payment scheme, our team is here to help.

For further information, please see HMRC’s guidance:

Tax fraud warning: Attempts to use ‘Bills of Exchange’ to pay HMRC - GOV.UK