Over the years many people have used tax arrangements that were designed to reduce tax liabilities. However, HMRC usually challenges what it considers to be ‘tax avoidance’ or ‘tax schemes’. In some cases it can take HMRC years to gather evidence and pursue a tax avoidance arrangement to the tribunal. This can leave individuals or companies with large tax bills, often years after the original scheme was used.Call Us Today
Tax Avoidance Schemes
Tax Avoidance - How can we help you?
If you have used a tax avoidance arrangement and HMRC is pursuing you for the tax and you wish to settle, we can help with that settlement. We can ensure that HMRC is only pursuing years that it is entitled to. We can make sure that HMRC’s computations are correct, and you are paying the right amount of tax. We can also look to see if there are any ‘consequential’ claims you can make to reduce the net amount you will need to pay on settlement as well as argue against any penalties. If time to pay is needed, we can negotiate with HMRC on your behalf to get a manageable payment arrangement. If you have received any accelerated payment or follower notices, we can help you deal with those. Unwinding a tax scheme can be complex, we can guide you through the process in an understandable way and help get the best result.
What you need to know
What are tax avoidance schemes?
Is tax avoidance ‘legal’?
Will I have to pay a penalty if I used a tax avoidance scheme?
Can I settle my avoidance scheme with HMRC?
Should I settle my avoidance scheme with HMRC?
What is DOTAS?
What are APNs?
What is a follower notice?
What you need to know
BE MINDFUL WHEN THINKING ABOUT TAX AVOIDANCE
Tax avoidance is a way of legally minimising a tax liability. The celebrated US judge Learned Hand said in 1934:
“Any one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one’s taxes.”
Although tax avoidance is quite different to tax evasion – which is tax fraud and is illegal – HMRC and the press sometimes like to present it that way. Previously, tax avoidance ‘schemes’ or arrangements were being sold on a mass market basis – that’s not the case so much now, but some are still available.
Some of the schemes worked, but more often than not, schemes like EBTs, EFURBS and Film Schemes have either been defeated in Court or are subject to new and challenging legislation like Follower Notices, Accelerated Payment Notices and the new ‘April 2019 Loan Charge’.
Unfortunately, clients are having to accept that the promised result simply won’t be achieved, and the arrangements need to be unwound or settled. We can help you understand the pros and cons so you can make an informed choice.
We don’t sell schemes, and we never have. But we have helped many clients understand the arrangements, whether they are effective, and if not helped them through to settlement, ensuring that the right amount is requested, all reliefs are claimed, and negotiating time to pay. In some instances, the failure of a scheme can lead to threats of liquidation or bankruptcy and if it is unavoidable, we can help you through this process.
Tax investigations into tax avoidance can be as lengthy and as stressful as other tax enquiries. inTAX is experienced in dealing with all types of tax investigations including tax avoidance cases.
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