HMRC has added Spotlight 26 on contractor loan schemes to its target list of tax avoidance schemes. These were first highlighted in Spotlight 12. HMRC ran a settlement opportunity between July 2014 and June 2015 for individuals who used contractor loan schemes before the disguised remuneration rules took effect in April 2011. The scheme was used to reduce tax by making payments which purport to be ‘loans’ from a trust or a company. These arrangements artificially diverted the income through companies, trusts or partnerships and paid the contractor in the form of a ‘loan’ which were claimed to be non-taxable because they did not form part of a contractor’s income. See www.bit.ly/1QszTdo.
HMRC has added Spotlight 26 on contractor loan schemes to its target list of tax avoidance schemes. These were first highlighted in Spotlight 12. HMRC ran a settlement opportunity between July 2014 and June 2015 for individuals who used contractor loan schemes before the disguised remuneration rules took effect in April 2011. The scheme was used to reduce tax by making payments which purport to be ‘loans’ from a trust or a company. These arrangements artificially diverted the income through companies, trusts or partnerships and paid the contractor in the form of a ‘loan’ which were claimed to be non-taxable because they did not form part of a contractor’s income. See www.bit.ly/1QszTdo.
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