Let’s face it, tax is not a simple subject and, to be fair, it’s not particularly interesting either which may be why announcements from HRMC often feel like they’ve been written in another language; not their latest offering.
In a completely straightforward publication headed up ‘Tempted by Tax Avoidance’, HMRC tell it as it is with headings such as “if something sounds too good to be true, it probably is” and “HMRC never approves tax avoidance schemes”.
They list warning signs which will indicate whether or not a scheme is likely to be tax avoidance and they recognise that it is very easy to be taken in by sales pitches and promises of high take home pay but warn that scheme providers are rarely up front about the risks. This is a great step forward for HMRC and a god send for umbrella companies who are working compliantly but are being commercially disadvantaged by avoidance scheme providers who promise levels of pay that compliant companies simply can’t match.
All Umbrella Companies are Equal was set up to create a level playing field for umbrella companies and we feel that this publication is exactly what’s needed – straight talking, unambiguous and easy to read – quite a feat for a document about tax!