HMRC wins disguised remuneration tax avoidance case

26 May 2022

The case related to Stephen Hoey, an IT contractor who used a disguised remuneration tax avoidance scheme. Mr Hoey worked through an umbrella company based overseas to provide his services to UK companies. The umbrella company disguised his pay as tax-free loans. The court of appeal decision has supported Her Majesty's Revenue and Customs' (HMRC’s) position and clarified that such loans will count as taxable income. This confirms that such schemes are unsuccessful.

The disguised remuneration settlement terms 2020 give those who are currently involved in such arrangements a chance to get back on track. They provide those who may struggle to pay what they owe immediately the opportunity to agree a manageable payment plan. More information can be found in the HMRC briefing issued last month.


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