Tax avoidance: Don’t get caught out!

March 11, 2021

Unscrupulous promoters of tax avoidance schemes are continuing to target healthcare workers, including those who have returned to help the NHS through the COVID-19 pandemic. For anyone involved in such schemes, there could be significant financial implications.

HMRC’s report, the Use of Marketed Tax Avoidance schemes in the UK, has shown that healthcare workers are often targeted and drawn into schemes marketed by companies promising higher take home pay and less administration. Most of these schemes do not work and those who use them are left to deal with the consequences including tax bills for the amount they tried to avoid.

That is why HMRC last year the launched the Tax avoidance: don’t get caught out national campaign to help contractors – or those thinking of going freelance – to understand the risks of using tax avoidance schemes and how they could be sold to them. We want to warn and educate healthcare workers about identifying the signs and the pitfalls of using tax avoidance schemes. This is part of HMRC’s wider work to make it much harder for promoters to operate.

If you think you have joined such a scheme, it is crucial that you leave it as soon as you can. The earlier you leave, the sooner you can settle the tax that you owe and reduce your chances of higher tax bills.

If you think you have spotted a tax avoidance scheme, you can report it by using the Report Tax Fraud Online form. Please make sure you enter the words ‘Contractor campaign’ in the ‘Other information’ section. You can also phone HMRC on 0800 788 887 (outside the UK +44 (0)203 080 0871).

If you think you are in a tax avoidance scheme, contact the team and they will help you get on the right track. They won’t be judgemental and if you can’t afford to pay everything in one go, they may be able to offer you an instalment arrangement. You can contact them at exitsteam.counteravoidance@hmrc.gov.uk

For further information please see Tax avoidance: getting out of an avoidance scheme.