HMRC is challenging arrangements used by contractors and other professionals to avoid tax by entering into a contract of employment with an offshore employer, while providing their services in the UK.
HMRC is challenging arrangements used by contractors and other professionals to avoid tax by entering into a contract of employment with an offshore employer, while providing their services in the UK. Under these arrangements, the users receive a substantial proportion of the fees for their services in payments which are said to be loans. HMRC has stated that it does not agree that these arrangements succeed in avoiding tax and that, over the coming months, HMRC will be sending tax assessments to those who have used these schemes between 2008 and 2011. Individuals using these schemes may have received letters opening enquiries into their recent returns.
HMRC has stated that anyone receiving an assessment can:
accept the assessment and pay the tax due; or
appeal against the assessments and begin the process to have the case heard by an independent tax tribunal if an agreement with HMRC cannot be reached.
Further information about the rules on assessing and how to appeal is being issued with the assessments.
HMRC is challenging arrangements used by contractors and other professionals to avoid tax by entering into a contract of employment with an offshore employer, while providing their services in the UK.
HMRC is challenging arrangements used by contractors and other professionals to avoid tax by entering into a contract of employment with an offshore employer, while providing their services in the UK. Under these arrangements, the users receive a substantial proportion of the fees for their services in payments which are said to be loans. HMRC has stated that it does not agree that these arrangements succeed in avoiding tax and that, over the coming months, HMRC will be sending tax assessments to those who have used these schemes between 2008 and 2011. Individuals using these schemes may have received letters opening enquiries into their recent returns.
HMRC has stated that anyone receiving an assessment can:
accept the assessment and pay the tax due; or
appeal against the assessments and begin the process to have the case heard by an independent tax tribunal if an agreement with HMRC cannot be reached.
Further information about the rules on assessing and how to appeal is being issued with the assessments.
