HMRC is unbowed as they remain wedded to the Loan Charge agenda – whilst the political parties fall over themselves during this General Election campaign period to end the “unfair” Loan Charge. Yet, during this festive political period, HMRC is driving ahead with further clampdowns on the “promoters” and “enablers” of tax avoidance schemes.

What The HMRC Say About Tax Advoidance

According to HMRC:

“Penny Ciniewicz, Director General of Customer Compliance at HMRC, told the Treasury Select Committee that HMRC is ‘doubling the resources’ to tackle those in the ‘avoidance supply chain’.

In response to questions about the loan charge, Ms. Ciniewicz said:

‘We have more than 100 current investigations into promoters [and enablers], and we’re keeping a very close eye on the market for avoidance. We are spotting schemes as they emerge and we’re tackling them.’

The loan charge policy is currently subject to an independent review. It came into effect on 6 April this year and applies to anyone who used ‘disguised remuneration’ schemes. The legislation added a 45% non-refundable charge on all loans advanced through the schemes unless the individual had agreed with HMRC to settle their tax affairs.”

What Does This Clamp Down Mean For You?

HMRC is keen to end the “market for avoidance” and are undertaking systemic investigations into ‘disguised remuneration schemes’ as they ‘emerge’ from legal or financial stakeholders to help protect taxpayers. The message is simple – avoid avoidance schemes until we know more about what the next General Election results look like.

The Tories have outlined the necessity for an in-depth Loan Charge review – but they remain supportive of HMRC’s wider investigatory work to help stymie the “avoidance marketplace”. Labour would do more to make the “marketplace” difficult to access by exploring British Overseas Territories – like the British Virgin Isles, Jersey and the Isle of Mann – financial affairs and their links with tax avoidance. The Liberal Democrats want to stop the Loan Charge in much the same way they want to stop Brexit. The Green Party follows the Labour Party line in relation to dark money, tax avoidance, and British Overseas Territories.

How Prestige Business Management Can Help You Stay On The Right Side Of The Law Regarding Tax Advoidance

At Prestige Business Management, we follow HMRC developments and can help businesses remain compliant with the latest tax-related changes. Why not get in touch with Prestige Business Management today? Call us on 0203 773 2927 to see of we can help you stay on the right side of the HMRC’s crusade against tax avoidance.