Individuals using a tax avoidance scheme provided by Peak PAYE Ltd are urged to withdraw from it and to contact HMRC as soon as possible.
This latest publication of a tax avoidance scheme promoter comes after HMRC recently used new powers for the first time as part of its Don’t Get Caught Out campaign.
The named tax avoidance promoter is Peak PAYE Ltd, of 86-90 Paul Street, London, EC2A 4NE.
The tax avoidance scheme pays contractors National Minimum Wage, and then pays the remainder of the contractor's wage disguised as a financial option or as a salary advance. The company then promises users that they can avoid paying National Insurance and income tax by signing up to the scheme.
Mary Aiston, HMRC’s director of counter avoidance, said: ‘Tax avoidance schemes are advertised as clever ways to pay less tax when in reality, they rarely work as the promoters promise, and it is the users that end up with big tax bills.
‘Naming tax avoidance promoters is one of the many steps we are taking to disrupt and drive scheme promoters out of business. We want to help ensure customers do not get caught out by tax avoidance.’
HMRC has now published the details of three tax avoidance schemes and their promoters and will continue to add to this list in the coming months. This is not a complete list of all tax avoidance schemes currently being marketed or a complete list of all promoters, enablers, and suppliers. HMRC recommends steering clear of all avoidance schemes.
The first two schemes to be named were promoted by Absolute Outsourcing of Bury, Greater Manchester, and the Equity Participation Scheme promoted by London-based Purple Pay Limited. Both schemes used promised users that they would be able to reduce their NICs and income tax liability but HMRC stressed that the schemes were not legitimate.
This is not the only way HMRC is ensuring customers do not get caught out by tax avoidance. HMRC also recently secured wins in two separate tribunal cases against the tax avoidance firm AML Tax (UK) Ltd, part of the Knox Group. AML Tax (UK) Ltd was successfully challenged over its refusal to provide details of three avoidance schemes, which follows a £150,000 fine for not providing HMRC with required information.
While one tribunal said that evidence provided by director Arthur Lancaster was ‘inconsistent with the documentary evidence’ and ‘disingenuous’, both lower tier tribunals ruled AML Tax (UK) Ltd should have disclosed the details of three tax avoidance schemes they promoted, and they could not appeal these decisions.
HMRC’s Tax Avoidance – Don’t Get Caught Out campaign offers a range of tools to taxpayers to help them steer clear of avoidance schemes, such as the interactive risk checker, payslip guidance, and case studies demonstrating the risks of becoming involved in a tax avoidance scheme and the warning signs to look out for.
Taxpayers who believe that they are involved in a tax avoidance scheme are advised to contact HMRC as quickly as possible by calling 03000 534 226. HMRC is also urging people who have been encouraged to get into a tax avoidance scheme or have come into contact with someone selling tax avoidance schemes to report these to HMRC.
The new powers given to HMRC to publish tax avoidance schemes and their promoters was first included in Finance Act 2021.
