At ePayMe, we pride ourselves in ensuring that we are fully compliant with HMRC. Unfortunately, there are some companies that are prepared to take the risk of running their business based around Tax Avoidance Schemes. If exposed, the damage will not only be the companies reputation, monetary costs, to both the company and contractors of under payments, but even the risk of penalties and criminal convictions. Over the recent years we have seen the Government crack down on Tax Avoidance, with continuing movements by HMRC to eliminate non compliant companies. Once caught, not only will the under payment of Tax need to be paid, but interest and further penalties can be presented. It is vital as a contractor to ensure that your finances are being managed correctly by a fully compliant company such as ePayMe and that you are not putting yourself at risk of tax avoidance. To help protect taxpayers from these underhanded companies, HMRC have put together a list of: “The 10 things a Tax avoidance scheme promoter won’t always tell you!” “1. Most schemes don’t work. You may be told that avoidance is legal, but if the scheme doesn’t work you’ll have made an incorrect tax return which is not in accordance with the law. You are legally obliged to pay tax that is due and you may be charged penalties if you try to avoid it. 2. It could cost you more than you bargained for. Avoidance schemes are complex. They can give rise to unintended additional tax consequences, and the fees you pay the promoter do not count as tax paid. So you could end up paying much more than just the tax you’re trying to avoid. 3. You may have significant legal fees to pay. If the scheme is taken to litigation, you’re likely to have hefty legal fees to pay. Your promoter may ask you to pay into a ‘fighting fund’ up front. 4. You could face criminal conviction. If you deliberately mislead or conceal information from HMRC you could be prosecuted and convicted. 5. You could face publicity as a tax avoider. If you are named in court papers when the case is litigated, or in public registers, you could be reported in the media as a tax dodger. 6. Your scheme is never HMRC approved. Getting an avoidance Scheme Reference Number from HMRC doesn’t mean the department has cleared the scheme. HMRC issues these numbers when a scheme has signs of being designed to avoid tax. 7. You could be marked out as a high-risk taxpayer. Use of a scheme could mark you out as a high-risk taxpayer, which means that all of your tax affairs will be closely scrutinised in future, not just your claim for relief. 8. HMRC is likely to beat your scheme in court. HMRC wins eight out of ten cases where taxpayers and promoters take avoidance schemes to court. 9. The risk is normally all your own. It’s unlikely that a promoter will give you a guarantee that a scheme will work. And they probably won’t be around to support you once HMRC starts investigating your tax affairs. Some promoters set up simply to sell the scheme, and then disband. 10. You’ll have to pay the tax up front anyway. You won’t get a cash-flow advantage while HMRC investigates a scheme. New legislation means you’ll have to pay the disputed tax up front.” – HMRC www.gov.uk You can rest assured that ePayMe are working alongside HMRC, to provide a complete payroll solution that is fully compliant at all times. However, if you have any questions then please contact a member of our experienced team, who are always on hand to help. 0800 622 6119 www.epayme.co.uk