Tax Avoidance – Accountants face tougher penalties

HMRC strengthening tax avoidance sanctions and deterrents

HMRC published a “consultation document” on “strengthening tax avoidance sanctions and deterrents”.

Under the proposed new rules, accountants and advisers who assist their clients to avoid tax could face penalties.  This could be up to 100% of the tax avoided. “These tough new sanctions will make would-be enablers think twice and in turn reduce the number of avoidance schemes on the market,” said the Financial Secretary to the Treasury, Jane Ellison.

The government has said that HMRC will only target those firms that help clients exploit tax rules.  This will include the setting up of offshore tax havens.  Although they will not take any action against legitimate ways of saving tax, such as putting money in pensions or ISAs.  However, it will be up to HMRC to draw the line between planning and avoidance.

Extension to HMRC’s investigation powers

This is another extension to HMRC’s investigation powers and could lead to accountants facing high financial penalties, as well as their clients. Given extra powers, HMRC has a habit of using them.

If your clients aren’t protected by Tax Fee Protection insurance, you may wish to look at this again. Given the proposed new rules, you should also ensure that your practice is protected.

Tax Fee Protection cover from Vantage Fee Protect

At Vantage Fee Protect, we believe in two over-riding principles. Simplifying tax fee protection by not over-complicating what we offer to practices and also creating complete transparency for accountants, in all practice relationships.  All practices with a Vantage Fee Protect tax fee protection scheme have the same level of cover.  There will be no hidden caps or limits, unless exceptionally the practice requests changes.  With us, you will have a dedicated relationship manager and Tax Fee Protection claims consultant and will know who to contact when you have a question or problem regarding fee protection.

If you require more information about Vantage Fee Protect Tax Fee Protection cover, please call 0116 274 9123.  Alternatively email us on info@qdosvantage.com.

Related News Articles

HMRC’s New R&D Disclosure Service: What You Need to Know

A new disclosure facility has been introduced to help companies address inaccuracies in historic R&D tax relief claims. Who is affected, and how should you use this facility if necessary? Due to the prevalence of errors and fraudulent claims in R&D tax relief, HMRC has set up a new disclosure facility for overclaimed relief. This…

Private School VAT FAQ

What has Changed? From 1 January 2025, all supplies of education, vocational training, and board & lodge made by a private school will be subject to VAT at the standard rate (20%). The draft legislation defines a private school as a school/institute that provides full-time education for pupils of compulsory school age (and those up…

UPDATE: Fuel Rates for Company Car Drivers

The reimbursement rates for employees using company cars for business travel have been updated as of 1 September 2024. These Advisory Fuel Rates (AFRs), set by HMRC, are revised every quarter to reflect changes in fuel prices. The AFRs specify the maximum amounts that can be reimbursed to employees for business mileage in a company…