{"id":630667,"date":"2023-04-18T09:49:24","date_gmt":"2023-04-18T14:49:24","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/04\/18\/hmrc-defends-removing-names-of-known-tax-avoidance-schemes-from-public-list\/"},"modified":"2023-04-18T09:49:24","modified_gmt":"2023-04-18T14:49:24","slug":"hmrc-defends-removing-names-of-known-tax-avoidance-schemes-from-public-list","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/04\/18\/hmrc-defends-removing-names-of-known-tax-avoidance-schemes-from-public-list\/","title":{"rendered":"HMRC defends removing names of known tax avoidance schemes from public list"},"content":{"rendered":"<div id=\"content-header\">\n<h2>HMRC under fire over &#8216;ridiculous&#8217; legislation that means it has to remove names of known tax avoidance scheme operators 12 months after publication<\/h2>\n<\/div>\n<div id=\"content-center\">\n<ul>\n<li><i data-icon=\"1\"><\/i><\/li>\n<li><i data-icon=\"2\"><\/i><\/li>\n<\/ul>\n<div id=\"contributors-block\">\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/computerweekly\/Caroline-Donnelly-CW-contributor-2022-140x180px.JPG\" alt=\"Caroline Donnelly\">\n\t\t\t\t\t<\/p>\n<p><span>By<\/span><\/p>\n<ul>\n<li>\n\t\t\t\t\t<a href=\"https:\/\/www.techtarget.com\/contributor\/Caroline-Donnelly\">Caroline Donnelly,<\/a><br \/>\n\t\t\t\t\t\t<span>Senior Editor, UK<\/span>\n\t\t\t\t\t\t<\/li>\n<\/ul>\n<p>\n\tPublished: <span>17 Apr 2023 15:00<\/span>\n<\/p>\n<\/div>\n<section id=\"content-body\">\n<p><a href=\"https:\/\/www.computerweekly.com\/news\/252528237\/IR35-HMRC-claims-potential-legislative-change-in-pipeline-to-address-settlement-offset-issue\">HM Revenue &#038; Customs (HMRC)<\/a> has defended its rationale for deleting names from its official online list of known tax avoidance schemes after 12 months after contracting market stakeholders described the strategy as \u201cridiculous\u201d.\u00a0<\/p>\n<p>The tax collection agency manages an online list of named tax avoidance schemes, which also includes details of the parties responsible for promoting and enabling these setups to operate and information on how each scheme reportedly works.<\/p>\n<p>There are 34 known tax avoidance schemes listed on the latest version, which was last updated on 5 April 2023.<\/p>\n<p>However, that update is known to have resulted in the names of two organisations being removed from the list, <a href=\"https:\/\/www.computerweekly.com\/news\/365530224\/Finance-regulator-finding-more-misleading-promotions-quicker-through-improved-digital-tools\">in line with the Finance Act 2021,<\/a> which states the names of schemes must be unpublished 12 months after they are first added.<\/p>\n<p>This is a situation that has garnered criticism in recent days, with Julia Kermode, founder of independent worker consultancy IWork, describing the legislation that allows the names of these entities to be removed from public record after a year as \u201cparticularly ridiculous\u201d.<\/p>\n<p>\u201cNaming a tax avoidance scheme only to delete it from an official list a year later is crazy. How can anyone steer clear of tax avoidance schemes when HMRC\u2019s own list isn\u2019t up to date? It\u2019s beyond belief,\u201d she said.\u00a0\u201cThis list isn\u2019t a deterrent for tax avoidance schemes \u2013 it\u2019s merely a temporary blip in the history of these so-called companies.\u201d\u00a0<\/p>\n<p>Computer Weekly has reported extensively in the past about how IT contractors have inadvertently found themselves embroiled in tax avoidance schemes after joining non-compliant umbrella companies that lure them in with the promise of <a href=\"https:\/\/www.computerweekly.com\/news\/252495105\/IR35-private-sector-reforms-IT-contractors-warned-to-be-wary-of-non-compliant-umbrella-companies\">\u201ctoo good to be true\u201d take home pay rates<\/a>. \u00a0<\/p>\n<p>These non-complaint umbrella companies use contrived methods to artificially minimise the amount of employment tax contractors pay, which includes using non-taxable loans to remunerate them for the work they do in-lieu of a conventional salary.<\/p>\n<p>In recent years, <a href=\"https:\/\/www.computerweekly.com\/news\/252473985\/Loan-charge-under-review-The-government-tax-policy-pushing-IT-contractors-to-the-brink\">HMRC has sought to clamp down on this practice<\/a> and recoup the unpaid tax from these setups though the introduction of its <a href=\"https:\/\/www.computerweekly.com\/news\/252486630\/Loan-charge-HMRCs-plans-to-clampdown-on-loan-scheme-promoters-slammed-by-IT-contractors\">controversial loan charge policy<\/a>, which has seen tens of thousands of IT contractors saddled with life-changing tax bills.<\/p>\n<p>The HMRC list is part of a series of measures the non-ministerial department has introduced to deter others from joining tax avoidance schemes and \u2013 in turn \u2013 finding themselves on the receiving end of enforcement action and payment demands,<\/p>\n<p>Kermode added: \u201cThese schemes wreck lives. They lure in unsuspecting individuals upon the pretence that they are legal and compliant. Then, when HMRC comes calling, the individual is left with a devastating tax bill. Meanwhile, the scheme, along with the people running it, have disappeared into thin air.\u201d<\/p>\n<p>Fred Dures, founder of payroll auditing company\u00a0<a href=\"https:\/\/urldefense.proofpoint.com\/v2\/url?u=https-3A__payepass.com_&#038;d=DwMF-g&#038;c=tEbGsWWjqkBSpaWdXc_mdMSanI1bDu-FKXiKGCfVmPM&#038;r=RWTSPJmBqvEGOd4MFLvBQzEdjmVW0Tetjiyh2Oh-MXU&#038;m=rfjWcFX3dBc7HSyEv_HCNAX8p95vLvF9OMvCGyJb87KTpB5elXs0QVqAQx3abmUW&#038;s=eIKqOfiU7dclwi_iUw4wg0YSEugil4Mw7-gdDXmHVPw&#038;e=\" target=\"_blank\" title=\"https:\/\/payepass.com\/\" rel=\"noopener\">PayePass<\/a>, said the situation would be \u201claughable, if it wasn\u2019t so serious\u201d and that removing the names one year after publication is \u201cappalling\u201d behaviour.<\/p>\n<p>\u201cWhat\u2019s more, the government has only been naming and shaming these schemes for one year. Fast forward a few weeks and months and, at this rate, the list will continue to shrink. It\u2019s one step forward, two steps back \u2013 a farcical loophole,\u201d said Dures.<\/p>\n<p>\u201cFew will deny that the umbrella industry needs regulating, yet the government still hasn\u2019t delivered it. It means the responsibility will continue to fall on businesses engaging umbrella companies to ensure compliance and operate transparent payment processes.\u201d<\/p>\n<p>In a statement to Computer Weekly, an HMRC spokesperson responded to the claims above and said its publication strategy does have a disruptive effect on the scheme promoters.<\/p>\n<p>\u201cWe ensure that all aspects of our promoter naming complies with the relevant legislation, including removing scheme names one year later in line with Finance Act 2021,\u201d the spokesperson said.<\/p>\n<p>\u201cNaming schemes has had a disruptive effect on promoters of tax avoidance. Schemes can also be named under Finance Act 2022 and details can stay online beyond 12 months. This will continue to warn taxpayers, so that they can steer clear of them.\u201d<\/p>\n<\/section>\n<section id=\"DigDeeperSplash\">\n<h4>\n\t\t\t<i data-icon=\"m\"><\/i>Read more on IT management skills<\/h4>\n<ul>\n<li><a id=\"DigDeeperItem-1\" href=\"https:\/\/www.computerweekly.com\/news\/252527138\/Loan-charge-contractors-hit-with-fresh-loan-repayment-request-from-new-firm\"><br \/>\n\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero Images\/HMRC-4-Fotolia_searchsitetablet_520X173.jpg\" srcset=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/HMRC-4-Fotolia_searchsitetablet_520X173.jpg 960w,https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/HMRC-4-Fotolia.jpg 1280w\" alt ><\/p>\n<h5>Loan charge contractors hit with fresh loan repayment request from new firm<\/h5>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/computerweekly\/Caroline-Donnelly-CW-contributor-2022-140x180px.JPG\" alt=\"CarolineDonnelly\">\n\t\t\t\t\t\t\t\t\t<\/p>\n<p><span>By: <span>Caroline\u00a0Donnelly<\/span><\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/div>\n<p>\t\t\t\t<\/a><\/li>\n<li><a id=\"DigDeeperItem-2\" href=\"https:\/\/www.computerweekly.com\/news\/252514614\/Cross-party-group-of-MPs-calls-on-Loan-Charge-contractors-to-participate-in-call-for-evidence\"><br \/>\n\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero Images\/Houses-of-parliament-fotolia_searchsitetablet_520X173.jpg\" srcset=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/Houses-of-parliament-fotolia_searchsitetablet_520X173.jpg 960w,https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/Houses-of-parliament-fotolia.jpg 1280w\" alt ><\/p>\n<h5>Cross-party group of MPs calls on Loan Charge contractors to participate in call for evidence<\/h5>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/computerweekly\/Caroline-Donnelly-CW-contributor-2022-140x180px.JPG\" alt=\"CarolineDonnelly\">\n\t\t\t\t\t\t\t\t\t<\/p>\n<p><span>By: <span>Caroline\u00a0Donnelly<\/span><\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/div>\n<p>\t\t\t\t<\/a><\/li>\n<li><a id=\"DigDeeperItem-3\" href=\"https:\/\/www.computerweekly.com\/news\/252510778\/Loan-charge-Tax-experts-call-on-Chancellor-for-simpler-more-affordable-policy-settlement-terms\"><br \/>\n\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero Images\/HMRC-2-fotolia_searchsitetablet_520X173.jpg\" srcset=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/HMRC-2-fotolia_searchsitetablet_520X173.jpg 960w,https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/HMRC-2-fotolia.jpg 1280w\" alt ><\/p>\n<h5>Loan charge: Tax experts call on chancellor for simpler, more affordable policy settlement terms<\/h5>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/computerweekly\/Caroline-Donnelly-CW-contributor-2022-140x180px.JPG\" alt=\"CarolineDonnelly\">\n\t\t\t\t\t\t\t\t\t<\/p>\n<p><span>By: <span>Caroline\u00a0Donnelly<\/span><\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/div>\n<p>\t\t\t\t<\/a><\/li>\n<li><a id=\"DigDeeperItem-4\" href=\"https:\/\/www.computerweekly.com\/news\/252504353\/IR35-Government-sets-out-plan-to-rid-contractor-market-of-non-compliant-umbrellas-and-loan-schemes\"><br \/>\n\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero Images\/London-Westminster-Parliament-1-adobe_searchsitetablet_520X173.jpg\" srcset=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/London-Westminster-Parliament-1-adobe_searchsitetablet_520X173.jpg 960w,https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/London-Westminster-Parliament-1-adobe.jpeg 1280w\" alt ><\/p>\n<h5>IR35: Government sets out plan to rid contractor market of non-compliant umbrellas and loan schemes<\/h5>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/computerweekly\/Caroline-Donnelly-CW-contributor-2022-140x180px.JPG\" alt=\"CarolineDonnelly\">\n\t\t\t\t\t\t\t\t\t<\/p>\n<p><span>By: <span>Caroline\u00a0Donnelly<\/span><\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/div>\n<p>\t\t\t\t<\/a><\/li>\n<\/ul>\n<\/section>\n<\/div>\n<p><a href=\"https:\/\/www.computerweekly.com\/news\/365535264\/HMRC-defends-removing-names-of-known-tax-avoidance-schemes-from-public-list\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><br \/>\n Blythe Schildgen<\/p>\n","protected":false},"excerpt":{"rendered":"<p>HMRC under fire over &#8216;ridiculous&#8217; legislation that means it has to remove names of known tax avoidance scheme operators 12 months after publication By Caroline Donnelly, Senior Editor, UK Published: 17 Apr 2023 15:00 HM Revenue &amp; Customs (HMRC) has defended its rationale for deleting names from its official online list of known tax avoidance<\/p>\n","protected":false},"author":1,"featured_media":630668,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1102,3540,46],"tags":[],"class_list":{"0":"post-630667","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-defends","8":"category-removing","9":"category-technology"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/630667","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=630667"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/630667\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/630668"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=630667"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=630667"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=630667"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}