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House of Lords report encourages tough action against promoters of tax avoidance schemes

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CIOT: ‘The Committee is right to back the government’s strategy of tough action against those who devise, promote and sell tax avoidance schemes’.

A House of Lords report encouraging the government to take tough action against ‘hard core’ promoters of tax avoidance schemes has been very much welcomed by the CIOT.

The recommendation is among those in a report from the House of Lords Economic Affairs Committee Finance Bill Sub-Committee, published on Saturday 19th December.

The report also draws on CIOT evidence in a number of other areas, including reducing the demand for tax avoidance schemes and the challenges of identifying an ‘uncertain tax treatment’, in making its recommendations.

Commenting on the Committee’s recommendations in relation to promoters of tax avoidance schemes (POTAS), CIOT Head of Technical Richard Wild (who appeared as a witness before the Committee) said, “The Committee is right to back the government’s strategy of tough action against those who devise, promote and sell tax avoidance schemes. They are also right to highlight the need for such action to be proportionate, carefully targeted and accompanied by safeguards.

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“In our written evidence to the Lords inquiry we identified two particular concerns in relation to the proposed measures: the lack of a right of appeal against the new information notice, and the inclusion of ‘DAC 6’ (the new cross-EU tax disclosure regime) within the definition of ‘defeated arrangements’ in the POTAS regime, when HMRC had provided assurances that DAC6 compliance would not creep into other regimes.

“The Committee endorses both of these concerns in its report, recommending that HMRC ‘revisits the triggers for POTAS to minimise the risk of these rules affecting bona fide professional advisers’, in particular in relation to DAC6, and reiterating its 2018 recommendation that new powers for HMRC should be accompanied by a right of appeal.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.

Jaime Thorpe

By Published on 30th December 2020

limited, Contractors

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Why Dolan Accountancy?

Dolan Accountancy was set up by Simon J Dolan, the man behind the well-known brand SJD Accountancy. With over 25 years experience in the contracting marketing, Dolan Accountancy has the heritage, reputation and credibility you can trust. Working closely with our sister company, Contractor Umbrella, it means we can offer one low cost, fixed fee package at £95 + VAT per month. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost. We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

  • Free Company Formation – This is where it all begins. Once you have decided on an available name, we will form your company free of charge (if using our accountancy services) and it will be ready for you to use in as little as three hours.
  • Free use of Contractor Umbrella – With changes in Public Sector IR35 Legislation we understand that sometimes you are required to contract via an umbrella company. We will keep your limited company ticking over, while you work margin free via our sister company, Contractor Umbrella.
  • A Dedicated Accountant – Your accountant will be there for any company or personal tax advice that you require. We will never outsource work, even to internal teams.
  • Free Access to FreeAgent – The founder behind the multi award winning FreeAgent platform was one of Simon’s first clients, therefore it only seems fitting that we offer all of our clients access to FreeAgent, free of charge.
  • Free Business Banking – We have decided to waive our commission so our clients can use Tide free of charge for the first year.
  • Unlimited IR35 Status Reviews – We will review all of your contracts for IR35 purposes and provide you with our professional opinion as to its status.
  • Free Registered and Director’s Service Office Address – Sometimes you just don’t want your home address on display at Companies House. When you sign up to our accountancy services, we will offer the use of our address as an alternative.
  • Your Business and Personal Taxation Needs – This includes Company Accounts, Director’s Personal Tax Return, VAT Returns, Payroll, Corporation Tax and Dividend advice, to name just a few.
  • Same day payments- We offer same day payments as standard providing funds are received into our account by 9am, for no additional fee.

If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.

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