HMRC warning 'Ten things you need to know about tax avoidance'
HMRC have published a list of factors to consider before buying into a 'scheme'. The list sets out the risks of entering into a tax avoidance scheme including the possible monetary costs and reputational damage of tax avoidance, but also a potential criminal conviction.
This list is being published as HMRC writes to the first promoters who will be caught by new High-Risk Promoters rules. If they don't change their behaviour, HMRC could name them publically and fines might be imposed of up to £1 million.
The Financial Secretary to the Treasury, David Gauke, said:
'The government has taken unprecedented steps to clamp down on the selfish minority who practise tax avoidance, because we are firmly on the side of the vast majority of taxpayers who play by the rules. As a result, tax avoidance is now very high risk.
On top of a substantial fee to join a scheme that will almost certainly fail a challenge by HMRC, tax avoiders will also have to pay the tax they dodged, plus interest and penalties.
To help protect taxpayers from unscrupulous promoters we have put in place new High-Risk Promoters rules, but people need to be aware of the dangers. So I would strongly advise anyone thinking of signing up to a scheme which they have been told will legally reduce their tax bill to carefully consider today's list of things a promoter may not tell you.'
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