HM Income and Customs (HMRC) has recognized 5 UK accountancy companies as having taken charges for steering shoppers right into a tax avoidance scheme promoted by B2BTradecard Restricted.
The disclosure varieties a part of HMRC’s ongoing crackdown on marketed tax avoidance schemes.
The companies named are HB&O Ltd, Ojak Consultancy Restricted, Atlas Accountancy Restricted, Henry Bramall & Co Restricted, and Roelken Restricted.
Administration corporations concerned within the referrals embrace Harrison Beale & Owen Administration Companies Restricted and SPM Administration Consultancy Ltd.
HMRC discovered that the accountancy companies acquired funds below so-called ‘Introducer Agreements’, the place charges have been calculated as a set share of the quantities their shoppers spent on the preparations.
HMRC’s director of counter avoidance, Jonathan Smith, mentioned:
“Selling tax avoidance is unacceptable. Accountants and tax advisors ought to give their shoppers sound recommendation, not steer them in the direction of schemes that can lead to giant tax payments.
Naming the individuals concerned in selling tax avoidance schemes is an important step in serving to prospects keep away from present and future schemes they may promote.
We perceive that dealing with surprising tax payments will be worrying and we urge any customers of this scheme to contact us instantly so we may help them settle their affairs.”
The scheme focused by HMRC allowed shoppers to say tax deductions for purchases described as “promoting providers” from B2BTradecard Restricted, earlier than receiving as much as 80% again by way of pay as you go playing cards.
HMRC regards this association as disguised earnings, which ought to have been taxed as regular earnings. A number of the accountancy companies concerned additionally offered tax and audit providers for a similar shoppers whereas incomes referral commissions.
The transfer comes amid wider authorities efforts to deal with tax avoidance. HMRC’s checklist now contains greater than 170 named schemes and promoters.
Current coverage modifications embrace strengthened guidelines for umbrella corporations, up to date guidelines on liquidations of restricted legal responsibility partnerships, and proposals for a brand new prison offence for promoters failing to reveal schemes.
The federal government has additionally launched a reward scheme for informants concentrating on severe non-compliance.
