Following last week’s announcement by the Chancellor
HMRC too complacent in its policing of disguised remuneration schemes says Professional Passport
Following last week’s announcement by the Chancellor that he will be providing £180m to help HMRC in its efforts to defeat avoidance structures once and for all, Professional Passport says that HMRC already holds all the information it needs to stamp out disguised remuneration schemes and rid the industry of criminal activity but is not acting on it. As a result, the lack of inactivity is likely to result in more schemes emerging in the coming months as the new Off-Payroll legislation takes effect in April.
Real Time Information (RTI) reporting that was introduced in 2013 along with the 2014 Intermediary Reporting provides HMRC with two sets of data that gives a unique insight into the market and the supply chain. Matching that data should set alarm bells ringing and help HMRC to identify a dubious provider and shut it down with immediate effect.
Commenting, Crawford Temple, CEO of Professional Passport said: “Whilst it is good news that HMRC will be receiving more funding and more resources to help it address tax avoidance and compliance issues, the simple fact remains that HMRC is not acting on the information it already has quickly enough, and many contractors have been unwittingly duped into schemes and put themselves at significant personal financial risk. It beggars belief.
“We have seen the impact the loan charge has had when lives have been destroyed because HMRC didn’t act on information to clamp down on the corrupt schemes and penalise the promoters of those schemes who escaped any consequences. I would urge HMRC to step up and proactively use the data it has, take swift action to enforce the law and stamp out these corrupt schemes before they do any more damage.”