Avoid tax schemes

Self-employed warned about dubious schemes HMRC has issued a further warning to self-employed people not to be duped by umbrella companies offering to boost their take-home pay by limiting their tax liabilities and paying them through loan or investment arrangements. HMRC said: “These types of arrangements are likely to result in you paying additional tax, interest and perhaps penalties, and are never HMRC approved.” Dave Chaplin, of Contractor Calculator, commented: “Aggressive tax planning schemes offering staggeringly high retention of income often rely upon leveraging loopholes within tax laws to gain a competitive advantage.” But Julia Kermode, the chief executive of the Freelancer and Contractor Services Association, complained that the sector was being “tarnished” by the actions of “non-compliant firms that do not provide professional employment services and are simply promoting dubious schemes.” Source: The Daily Telegraph (21/09/2018)