Contact Us

More than 16,000 individuals have been given six months by HM Revenue and Customs (HMRC) to come forward or risk paying more, having previously used an offshore scheme that avoided £176m a year in tax.
 
HMRC has targeted contractors with a settlement opportunity, which will be open until January 2015, to users of the loan scheme – each of whom has an average annual tax bill of £11,000.
 
Those who fail to come forward and continue to challenge the tax liability risk being charged with additional tax charges and penalties by HMRC – as well as the costs of litigation should they lose.
 
Contractors which take the option of using the settlement opportunity – applicable to the tax years up to 5th April 2011 – are able to settle up on the “best possible terms”.
 
This means they will only pay the tax and interest due on the sums they received as loans under the “particularly aggressive” scheme, used by around one per cent of the UK’s contractor population.
 
The contractors had signed a contract of employment with an offshore employer, which then paid them for their work on UK contracts via an offshore company or trust, in the form of non-taxable loans, rather than income.
 
The tax authority addressed UK contractors and employers who have used such loan schemes and explained the importance of complying with their settlement opportunity.
 
“They can choose to continue to litigate for a better outcome but they risk a worse result,” said an HMRC spokesperson.

“HMRC has a strong track record of winning tax avoidance cases in court, with around 80 per cent of decisions in our favour.
 
“The costs for users are high, potentially resulting in penalties, charges and significant legal costs for scheme users.”

Date published 29 Jul 2014 | Last updated 29 Jul 2014

Choose the right accounting firm for you

Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?

Local business focus icon

Local business focus

We specialise in supporting independent businesses and work with 80,684 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.

Come and meet us icon

Come and meet us

We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 409 locations, meet with us online through video call software, or talk to us by telephone.

Switching is simple icon

Switching is simple

Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.

See how TaxAssist Accountants can help you with a free, no obligation consultation

0800 0523 555

Or contact us