Wealth Advisor’s misleading tax scheme advertising

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The Advertising Standards Authority (ASA) has criticised Knight Wolffe, a wealth advisor for misleading income trust advertising. The advertising material even used HMRC’s logo. The criticism was contained in a recently reported Spotlight 40 entitled “Income trust schemes: misleading advertising”. In the report HMRC criticise the Knight Wolffe income trust calling it a tax avoidance scheme. This is because the… Read more »

HMRC urged to scale up digital tax reporting pilots

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HMRC has been urged to scale up its pilots of Making Tax Digital (MTD). It has also been asked to invest in a major publicity campaign for the project. The call came from the Association of Taxation Technicians. Its President Graham Batty said “Pleased as we are about the relaxation in the timetable for quarterly reporting and digital record keeping… Read more »

Construction payroll company boss jailed

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A businessman who set up his own payroll company for construction workers who were self-employed has been jailed for fraud. Paul Marsh was the director of the company. In court Mr. Marsh admitted to making three fraudulent VAT declarations. The declarations that Mr. Marsh made to HMRC had the effect of reducing the amount of tax his company, Draco Consulting… Read more »

Hammond urged not to extend off-payroll rules

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The Chancellor Phillip Hammond has been urged not to extend the off-payroll rules that currently apply to the public sector in to the private sector in the Autumn Budget 2017. The call has come from PRISM who have called on the chancellor to “stop and analyse” the evidence both for and against any extension rather than simply announcing it as… Read more »

Lib Dems want new employment status tests

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The Liberal Democrats have proposed new legal tests for establishing employment status and for a new dependent contractor category to be introduced. The dependent contractor category was proposed by the Taylor Review of modern working practices. The Lib Dems believe that employment status should be based on things such as the degree of employer control or by thresholds on income… Read more »

HMRC warns loan scheme window dressing is useless

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HMRC is aware of claims to avoid the 2019 loan charge on disguised remuneration being made by promoters of tax avoidance schemes, and warns that these do not work. Participants of tax avoidance schemes that employ the use of loans are being told that they can sign documents saying that the sums they have received from their disguised remuneration scheme… Read more »

Large businesses may have underpaid tax

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HMRC believes that large businesses may have underpaid their tax to the tune of £24.8 billion in the last year, a 13 percent increase on the previous year. These figures come from Pinsent Masons, a law firm. HMRC’s Large Business Directorate suspects that the amount of underpaid tax has risen by 31 percent, up from £18.99 billion in 2014/15. Heather… Read more »

HMRC wins 22 out of 26 tax avoidance cases

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According to statistics released by HMRC, between 2016-17 the organisation won 22 out of 26 tax avoidance cases that it took to court. Of the remaining four cases, one had mixed results. These figures are down on those for 2015-16 when HMRC won 23 of the 26 cases taken to court. The cases that HMRC lost included one over corporation… Read more »

HMRC updates off-payroll guidance

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HMRC has updated its guidance notes, leading to rumours that the off-payroll rules will be applied to the private sector. Many contractors fear that the off-payroll rules that apply to the public sector will also be introduced to the private sector. Its webpage, that has just been updated, used to contain information about IR35 in the private sector. The new… Read more »

HMRC rakes in VAT from small to medium sized firms

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Value Added Tax (VAT) is becoming an increasingly important way for HMRC to increase its takings when it comes to the investigation of small businesses or contractors. Figures obtained by a Sunday newspaper show that VAT makes up 49 percent of the extra tax HMRC takes from investigations into small or medium sized firms. Although only a small increase, this… Read more »