Members of a House of Lords committee have called on HMRC to “constantly review” the business practices of its contractors after it emerged that 15 were known to have used a controversial tax-avoidance measure the department is cracking down on.
Lord Bridges of Headley said that HMRC needed to practise what it preached following a session of the upper chamber’s Economic Affairs Finance Bill Sub-Committee that heard HMRC knew people who worked for it had used so-called disguised remuneration schemes.
HMRC, quoted by CSW, said that it had "never endorsed or participated in disguised remuneration tax avoidance schemes".
"It is possible for contractors to use disguised remuneration without the participation or knowledge of their engager.
"Whenever it is discovered that a contractor, providing services to HMRC or RCDTS, is currently using a disguised remuneration scheme, HMRC (acting as the engager of contingent workers) acts promptly to terminate the relevant engagements.
"We do not investigate these cases any differently to other cases of suspected disguised remuneration, we are even-handed and treat all taxpayers equally.
"We continue to warn people about the risks of using tax avoidance schemes and our advice remains true – if something looks too good to be true, it almost certainly is."
Tax does have to be taxing.
Tax Investigation Insurance
Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.
You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.
Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.
A Solar Protect policy will enable your Accountant (your tax return agent) to:
- Deal with any correspondence from HMRC
- Attend any meeting with HMRC
- Appeal to the First-tier Tribunal or Upper Tribunal
- Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly
Please click here for details.
HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"