In the most recent effort to better safeguard the public, tax avoidance executives have been identified for the first time.
Today, August 31, 2022, HM Revenue and Customs (HMRC) utilised new authority to publicly identify the directors of businesses that promote tax avoidance, warning clients to quit the firms’ schemes or face hefty tax liabilities.
The director of tax evasion promoter Saxonside Ltd is Adam Fathers, while Stuart John Brooke is the brains behind tax evasion promoter The Umbrella Agency Ltd.
The public will be warned to avoid any avoidance strategies marketed by other firms with the same directors if the directors behind these schemes are identified.
Director of Counter Avoidance at HMRC, Mary Aiston, stated:
In order to encourage clients to avoid the existing and future schemes they advertise, identifying the persons behind tax evasion schemes is an essential first step.
Promoters who believe they can get away with hawking avoidance strategies should take note of our recent action as a severe warning. We will keep using all of the tools at our disposal to punish promoters.
Customers who believe they are a part of a tax avoidance plan should end the programme and get in touch with us for assistance as soon as feasible.
Today marks the first time that The Umbrella Agency Ltd. and its director have been made public.
Users of both schemes have been urged to cancel their participation or face receiving significant tax liabilities after HMRC revealed the director of the previously mentioned promoter, Saxonside Ltd.
The participants in both schemes sign an employment agreement with the promoter and are subsequently compensated with the National Minimum Wage.
The remaining money is subsequently distributed to scheme participants in an effort to prevent them from having to pay income tax and social insurance.
These kinds of schemes often make false claims that their customers may avoid paying income tax and national insurance.
After issuing a stop notice earlier this month, HMRC has now taken another step in its campaign to punish those who facilitate tax evasion. In order to avoid fines of up to £1 million, the promoter is forbidden from selling their programme.
HMRC has identified a total of 15 businesses that promote tax evasion strategies.
This is not a comprehensive list of every tax evasion scheme presently on the market, nor is it a list of every proponent, enabler, and supplier.
As part of the Tax Avoidance – Don’t Get Caught Out campaign, HMRC also gives consumers a variety of tools to aid them in avoiding avoidance strategies.
These resources include an interactive risk checker, payslip advice, and case studies outlining the dangers of participating in a tax avoidance plan as well as the red flags the general public should be aware of.
It is suggested for anybody who think they are a part of a tax avoidance scheme to get in touch with HMRC as soon as possible by dialling 03000 534 226.
Additionally, HMRC is inviting individuals to use their online form to report anybody who has urged them to join a tax avoidance scheme or has come into touch with someone who is marketing one.
The Umbrella Agency Ltd. and Saxonside Ltd. are both included in further detail on HMRC’s often updated list of identified tax avoidance promoters.
HMRC now has the ability to identify the directors, owners, and company officials of firms suspected of encouraging tax evasion according to new powers provided to HMRC under Section 86 of the Finance Act 2022.
Additionally, they make it much easier for HMRC to disseminate information about the programmes that are being offered. HMRC is using these new powers for the first time in this situation.
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