Tax avoidance scheme users making upfront payments

30 October 2014

It is now more than three months since HMRC have had the power to require individuals and businesses involved in tax avoidance schemes to pay the disputed amount of tax upfront while the dispute is resolved.

HMRC have now issued a new briefing , to explain how this new power, called ‘Accelerated Payments,’ is being used.

One detail which might interest payroll specialists is a list of six areas of abuse to which this scheme has been directed. Most of the list is unlikely to be relevant to payroll, although the third and sixth items on the list

· sideways loss schemes

· stamp duty land tax (SDLT) schemes

· self-employment schemes

· artificial loss deduction schemes

· capital gains schemes

· employment schemes

could well be.