Lifting the Lid on Tax Avoidance Schemes – LITRG response

Published on 15 October 2012

LITRG welcomes the new programme of work the Government is developing to improve information available to HMRC and their customers about tax avoidance schemes and the risks of using them.

We support the overriding objective that everyone pays their fair share of tax and in making it clear that abusive tax avoidance is unacceptable. This message is particularly significant for the unrepresented taxpayer whom we represent, in the main those on low and moderate incomes, given that these groups are generally unable to use avoidance devices in order to reduce their tax liabilities.

Although the group supports robust measures by HMRC to tackle abusive tax avoidance, it also expresses strong concerns that many people might not be aware of the risks involved in using an avoidance scheme marketed or made available to them.

LITRG comments in detail on the provision of services via intermediary companies, such as ‘umbrella’ companies and personal service companies. Such arrangements are promoted widely via the Internet and increasingly workers may have little or no choice in taking them up. In addition, some workers may actively choose to use such arrangements, but they might not understand, or fully understand, the implications and consequences of using intermediary companies.

To see the full LITRG response, please use the link below:
The LITRG response
The consultation document

(15-10-2012)

Contact: Joanne Walker (please use form at http://www.litrg.org.uk/ContactUs)