Tempted by Tax Avoidance? A warning for people thinking about avoidance schemes The vast majority of people in the UK don’t try to avoid tax: they pay the tax they owe when it is due and don’t try to bend or break the rules. A small minority of people are lured into tax avoidance schemes by the promise of big tax savings for little cost or effort. But trying to dodge tax carries risks. HM Revenue & Customs (HMRC) is very successful at tackling tax avoidance and employs teams of tax, legal and accountancy experts to challenge those who try to get out of paying their tax.
Anyone tempted to use a tax avoidance scheme should think very carefully about the costs, the disruption caused by having to deal with HMRC enquiries and potentially lengthy litigation, and uncertainty over the outcome they may face as a result. Well it appears that some companies offering excessive take home pay have come under close scrutiny from HMRC. A snippet from a free local paper on the Isle of Man shows a number of companies offering such schemes as “going into liquidation”. Picture Are you a contractor who is working through one of these companies; Darwin Consulting Limited, Garraway Contracts Limited, Long Acre Contracts Limited or Winchester Contracts Limited? Have you been informed about any changes?