18 August 2023

HM Revenue and Customs (HMRC) has added a new name to the current list of named tax avoidance schemes, promoters, enablers and suppliers.

The company, Dalespay Ltd, and its directors have been added to the list for failing to pay the correct employment taxes.

HMRC’s interpretation of the scheme and how it works is detailed:

The arrangements involve individuals providing their services to end clients or agencies through Dalespay Ltd (DL) and entering into an agreement where individuals grant Bestia Holdings Ltd (BHL) a right to enter an Annuity Agreement in exchange for payments (the ‘Grantee Payments’). The individuals receive a payment from DL; however, tax and National Insurance contributions (NICs) are only deducted on a small part of the amount. This is evidenced on the payslips and figures reported to HMRC. It is HMRC’s view that the larger amount paid without tax or NICs deducted, relates to the Grantee Payments, but paid by DL on behalf of BHL. It is also HMRC’s view that the Grantee Payments are additional disguised income for services provided by individuals through DL, and the entire payment should therefore be subject to tax and NICs.

It is important to spread awareness of these schemes and to not get caught up in them. But, if you think you are involved in one, you can contact HMRC for assistance and guidance.

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