HMRC has won a legal case over a contractor loan scheme endorsed by Hyrax Resourcing Ltd. As a result, HMRC will now be able to collect more than £40 million in unpaid taxes.
The scheme in question was a disguised remuneration avoidance scheme, which paid users in loans, rather than salaries, to avoid paying income tax and national insurance contributions on earnings.
Hyrax Resourcing Ltd will now be required to disclose details of the tax avoidance scheme, including the names and addresses of 1,180 individuals who used it. Failure to provide the relevant information could result in Hyrax Resourcing Ltd becoming liable for substantial penalties.
Financial Secretary to the Treasury, Mel Stride MP, said:
'HMRC is cracking down on the unscrupulous promoters who sell these highly contrived tax avoidance loan schemes.
'Promoters need to take note of this decision and make sure they contact HMRC urgently about schemes they haven't yet disclosed.'
Internet link: HMRC news
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