HMRC wins disguised remuneration avoidance case

HMRC has won a legal case over a contractor loan scheme endorsed by Hyrax Resourcing Ltd.

HMRC has won a legal case over a contractor loan scheme endorsed by Hyrax Resourcing Ltd. As a result, HMRC will now be able to collect more than £40 million in unpaid taxes. 

The scheme in question was a disguised remuneration avoidance scheme, which paid users in loans, rather than salaries, to avoid paying income tax and national insurance contributions on earnings.

Hyrax Resourcing Ltd will now be required to disclose details of the tax avoidance scheme, including the names and addresses of 1,180 individuals who used it. Failure to provide the relevant information could result in Hyrax Resourcing Ltd becoming liable for substantial penalties.

Financial Secretary to the Treasury, Mel Stride MP, said:

'HMRC is cracking down on the unscrupulous promoters who sell these highly contrived tax avoidance loan schemes.

'Promoters need to take note of this decision and make sure they contact HMRC urgently about schemes they haven't yet disclosed.'

Internet link: HMRC news

COVID-19: measures for UK businesses

Measures for UK businesses and employers during the COVID-19 outbreak.

Spring Budget 2020

Details of the Spring Budget 2020. Our summary focuses on the key issues.

Factsheets

Factsheets covering a range of relevant accountancy and business topics.

Register

Signup for our FREE monthly newsletter and keep up to date with the latest news.

© 2020 Philip Atherton Limited. All rights reserved. | powered by totalSOLUTION

Philip Atherton Limited is registered in England and Wales. Registration number: 4544358.
Registered office address: The Old Electrical Workshop, Welby, Grantham, Lincolnshire NG32 3LT

We use cookies on this website, you can find more information about cookies here.