The CIOT has responded to HMRC’s call for evidence on tackling disguised remuneration tax avoidance, welcoming the commitment to ‘discouraging the use of abusive arrangements involving disguised remuneration schemes, and this early stage call for evidence to ascertain the extent of the problem and possible further actions the government could take in response.’
The CIOT believes HMRC should target promoters of disguised remuneration schemes by:
making it clear that disguised remuneration schemes do not work and often involve fraud;
using existing powers to pursue sanctions and penalties and, in appropriate cases, criminal prosecutions against promoters and enablers;
requiring onshore engagers to do more due diligence on the party with whom they are contracting;
introducing more rigorous compliance activity as regards umbrella companies;
introducing financial incentives for taxpayers to contact HMRC with information about disguised remuneration schemes;
discussing with the Bar Council the circumstances in which disguised remuneration schemes are promoted by reference to ‘Counsels’ Opinion’; and
considering directing workers to appropriate HMRC guidance through messages on umbrella company payslips or other communications from engagers and agencies.
The CIOT has responded to HMRC’s call for evidence on tackling disguised remuneration tax avoidance, welcoming the commitment to ‘discouraging the use of abusive arrangements involving disguised remuneration schemes, and this early stage call for evidence to ascertain the extent of the problem and possible further actions the government could take in response.’
The CIOT believes HMRC should target promoters of disguised remuneration schemes by:
making it clear that disguised remuneration schemes do not work and often involve fraud;
using existing powers to pursue sanctions and penalties and, in appropriate cases, criminal prosecutions against promoters and enablers;
requiring onshore engagers to do more due diligence on the party with whom they are contracting;
introducing more rigorous compliance activity as regards umbrella companies;
introducing financial incentives for taxpayers to contact HMRC with information about disguised remuneration schemes;
discussing with the Bar Council the circumstances in which disguised remuneration schemes are promoted by reference to ‘Counsels’ Opinion’; and
considering directing workers to appropriate HMRC guidance through messages on umbrella company payslips or other communications from engagers and agencies.
