£1 million fine given to tax avoidance promoter

05 August 2022

Hyrax Resourcing Ltd has been issued a £1 million fine for engaging in the promotion of a tax avoidance scheme. Her Majesty’s Revenue and Customs (HMRC) has been showing concerted efforts recently to tackle and prevent wilful non-compliance activity.

HMRC’s director of counter-avoidance, Mary Aiston, said:

This £1 million fine should serve as a stark warning to tax avoidance promoters. Those who ignore their legal duty will face serious consequences. We actively tackle promoters of tax avoidance schemes and are determined to drive them out of business. We continue to use the full force of the law to challenge tax avoidance scheme promoters.”

The company failed to disclose its involvement in a disguised remuneration scheme where users were paid national minimum wage and the remainder of earnings paid as untaxed loans. This is similar to other schemes on HMRC’s list of tax avoidance schemes, promotors, enablers and suppliers.

Hyrax Resourcing Ltd was fined the maximum of £600 per day that the avoidance scheme was undisclosed. At a total of 1,791 days, this resulted in a fine of £1,074,600.

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