Freelance workers must declare any tax-avoidance schemes they have used by 30 September or face punitive penalties.
Her Majesty's Revenue and Customs (HM Revenue and Customs or HMRC) is a non-ministerial department of the UK Government responsible for the collection of taxes, the payment of some forms of state support and the administration of other regulatory regimes including the national minimum wage.... More are targeting 000’s of contractors who were paid by via loans from Employee Benefit Trusts and similar arrangements going back to 1999.
HMRCs view is that these arrangements were artificial and are disguised remuneration which should be subject to income tax.
It’s important that those affected come forward to settle with HMRC and avoid a loan charge on top of demands for repayment.
This would be a nasty sting in the tail for taxpayers who had previously been led to believe that the schemes they had joined were fully acceptable to HMRC, action should be taken as soon as possible.
If you need assistance in reaching a settlement, making a disclosure and bringing your tax affairs up to date with HMRC please contact us for assistance.