HMRC warns of another tax avoidance scheme

Individuals using a tax avoidance scheme provided by Peak PAYE Ltd are urged to withdraw from it and to contact HMRC.

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.

By paying contractors National Minimum Wage, and then paying the remainder of the contractors’ wage disguised as a financial option or as a salary advance, this promoter promised its users that they can avoid paying National Insurance and Income Tax.

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.

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.

Customers 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 customers 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.