As thousands of retired workers are being offered roles supporting the NHS in tackling the Coronavirus outbreak, HMRC has taken the opportunity to reaffirm its guidance regarding the use of Tax Avoidance Promoters.
In a recent Spotlight release, HMRC has outlined its belief that returning NHS workers are being ‘targeted’ by Tax Avoidance Promoters. It is vital, now more than ever, to ensure that you take steps to ensure the integrity and compliance of your supply chain.
To familiarise yourself with Tax Avoidance schemes and be able to identify promises your workers may get, here are some of the common traits:
- Wages are usually paid in two payments
- One is paid as the National Minimum Wage or close to it
- The second is paid as some form of ‘Loan’ that workers are advised is not taxable. These are also often promoted as ‘Annuity’, ‘Shares’ or ‘A Capital Advance’
- The Tax Avoidance Promoters make unreasonable claims regarding net pay percentages, often claiming a take home pay of 80%/85% of gross earnings
- Workers are often asked to sign documents above and beyond a contract of employment such as agreements to receive loans, advances, shares, annuities or anything else not related to work
These are all designed to disguise earnings which ordinarily would and should be subject to Income Tax and National Insurance Contributions.
For the full release please click here.
IMPORTANT: As an employer, you have an obligation to ensure that you are not facilitating tax avoidance under the Criminal Finance Act (2017). A failure to do so could result in your organisation being found criminally liable for tax avoidance, which HMRC will use the full range of civil and criminal powers to investigate.
By using the +Us Contingent Workforce System to engage your workers, you safeguard your organisation and workers against any tax avoidance by ensuring you have full visibility of the supply chain.
Please get in touch with +Us should you have any concerns on your existing supply chain or require assistance with putting this in place. You can contact us by emailing ClientRelations@plusus.co.uk.