23 July 2021
The Association of Professional Staffing Companies (APSCo) has welcomed the outcome of HMRC’s consultation, Clamping down on promoters of tax avoidance. In the summary of responses published this week, HM Revenue and Customs confirmed its plans to push ahead with measures to clampdown on promoters of tax avoidance.
Tania Bowers, Legal Counsel and Head of Public Policy at APSCo commented:
“We’re pleased to see that HMRC will be taking action on tax promoters in next year’s Finance Bill. Under the proposals, any UK firms – including umbrella companies – that are enabling and promoting offshore schemes will have their assets frozen and businesses wound up, preventing the further facilitation of these schemes.
“Our hope is that this will have a long-term positive impact on the recruitment sector, with the legislation finally enabling HMRC to publicly name promoters that they are investigating. There’s long been an issue with transparency on HMRC enforcement activity. Addressing this will enable greater clarification for end clients and those impacted by tax avoidance schemes regarding what is and isn’t compliant.
“We’re pleased that HMRC continues to raise awareness of their guidance to taxpayers on the existence of and risks associated with these schemes through multiple resources so that workers don’t unwittingly enter disguised remuneration schemes.”