1 day Ago By [email protected] (Courtney Eales)
Tax avoidance involves bending the rules of the tax system HMRC has issued a warning to millions of people across the UK. Tax avoidance involves bending the rules of the tax system to try to gain a tax advantage that Parliament never intended. Further information on Gov.
uk states: "Most tax avoidance schemes simply do not work, and those who use them may end up having to pay much more than the tax they tried to avoid, including penalties." In guidance posted to X, formerly known as Twitter , HM Revenue and Customs said: "Everyone can learn to spot the signs of tax avoidance. Don't get caught out.
" A video accompanying the text states: "Been offered a way to boost take home pay? Don't get caught out it could be tax avoidance." They urge followers to spot the signs. Here are some of the warning signs that you might be in a tax avoidance scheme or you are being offered to join one.
The government has outlined the risks: It sounds too good to be true Some schemes promise to lower your tax bill for little or no real cost, and suggest you do not have to do much more than pay the scheme promoter their fees and sign some papers. Pay in the form of loans or other untaxed payments Some schemes designed for contractors, agency workers and other temporary workers or small and medium sized employers, involve giving workers some or all of their payment either as a loan or other payment that they’re not expected to pay back. The payment may be diverted through a chain of companies, trusts or partnerships often based offshore and received from a third party.
Sometimes the payment is received directly from an employer. Other ways in which these untaxed payments may be described include: grants salary advances capital payments credit facilities annuities shares and bonuses fiduciary receipts Gov.uk advises: "You should do your own research to find out more about the adviser and the scheme on offer before you sign up to it.
You can ask for advice or help from an independent, qualified, accountant or tax adviser. Choose one who is a member of a professional body that regulates its members’ standards and behaviour.".
