A firm which was fined £150,000 for promoting tax avoidance schemes has been named again as HM Revenue & Customs (HMRC) published details of five further avoidance schemes.
Last year AML Tax (UK) Ltd was fined for failing to provide HMRC with legally required information as part of a tax investigation. Now it has been named as promoting three of the five schemes which seek to disguise remuneration, something which HMRC classes as tax avoidance.
The three AML linked schemes named are:
· Annuity Arrangements, AML Tax (UK) Limited, 1st Floor, Blackfriars House, Parsonage, Manchester, M3 2JA
· AML Prefunded EBT, AML Tax (UK) Limited, 1st Floor, Blackfriars House, Parsonage, Manchester, M3 2JA
· AML Split Contract, AML Tax (UK) Limited, 1st Floor, Blackfriars House, Parsonage, Manchester, M3 2JA
Other schemes named are:
· Enhanced Umbrella, Tailored UK Services Ltd (TUSL), trading as Tailored Resourcing, 67 Grosvenor Street, Mayfair, London, W1K 3JN
· Able Ltd/Contractor Central Accounting Ltd Able Ltd: 2nd Floor, Queen Victoria House, Victoria Street, Douglas, Isle of Man, IM1 2LF.Contractor Central Accounting Ltd (CCAL): The Axis Building Maingate, Team Valley Trading Estate, Gateshead, England, NE11 0NQ
The three AML schemes make use of complex company structures and directors’ loan accounts to extract profit, providing directors with income where Corporation Tax, Income Tax and National Insurance contributions were not correctly paid.
The other two schemes make one payment to users that is close to National Minimum Wage and then another disguised payment, which the promoters claim is non-taxable and Income Tax and National Insurance are not correctly deducted.
According to HMRC, understanding how you’re being paid, whether PAYE or Self-Assessment, is the best way to make sure you don’t get caught up in tax avoidance.
Confirm you are paying the right amount of Income Tax and National Insurance contributions by checking your payslips and contractual arrangements.
Doing this will mean you avoid getting an unexpected tax bill later.
Things to look out for include:
· Receiving untaxed payments like loans or capital advances
· Receiving more money in your bank account than what is shown on your payslip
Your accountant will be able to advise you on this, so make sure you discuss it if you have any doubts.
Anyone who believes that they are involved in a tax avoidance scheme, should contact HMRC as quickly as possible by emailing: CAGetHelpOutOfTaxAvoidance@hmrc.gov.uk
Need help with pay and taxation matters? Contact us.
