HMRC guidance on Disguised Remuneration

HMRC guidance on Disguised Remuneration was last published (as of writing) on 7 November 2017 with the objective of identifying Disguised Remuneration Tax Avoidance Schemes.  This guidance emphasises the need for Disclosure via the DOTAs procedure to avoid the consequences of the loan charge liability, which will be enforceable from April 2019.

For obvious reasons, HMRC only act to regulate the legal framework and collect the taxes due under that framework.  They cannot advise you on your tax liabilities or what you should do in the event you consider that you have received Disguised Remuneration or are a party to an illegal Tax Avoidance Scheme.

A tax accountant will be able to advise on the correct tax mechanisms but, if you are already in a Tax Avoidance Scheme (or suspect you are), then the next stage is to begin negotiations with HMRC with a view to disclosing your arrangements and avoiding the punitive charges that would otherwise be employed.

However, it may be that disclosure is not necessary and by disclosing you may be exposing yourself to similar punitive consequences of penalties, surcharges and interest that may be charged on such alleged liabilities.  Accordingly, it is vital that you seek advice on your best option immediately.

At Francis Wilks & Jones we have considerable experience of tax legislation and defending claims by HMRC or liquidators appointed over companies which face such difficulties and we can assist you with any negotiations with HMRC, including accelerated payment notices, any disguised remuneration scheme issues, personal liability notices, VAT security or any other claim by HMRC, including appeals to Tax Tribunals or insolvency claims.

Please call any member of our Tax Disputes team for your consultation now on 020 7841 0390.  Alternatively email us with your enquiry at info@franciswilksandjones.co.uk and we will call you back at a time convenient to you.