An eye-watering £40 million in unpaid taxes is going to be collected by HMRC from high earning people using a tax avoidance scheme.
The scheme promoter is Hyrax Resourcing Ltd. HMRC are now demanding they disclose the details of the scheme along with the names and addresses of 1,180 people who used the scheme. The scheme users were paid National Minimum Wage, and the remainder of their earnings was made up in the form of loans which were transferred to an offshore trust.
This is even more distasteful when you think that the National Minimum Wage, which has recently celebrated its 20th anniversary, having been introduced in 1999, was set up to improve the earnings of the lowest paid members of our society. The legal case that HMRC has won will allow them to collect unpaid taxes of over £40m and if the scheme promoter fails to comply with the ruling to provide the required information, they will face a penalty of almost £6 million and £5,000 per day.
At Payroll Masters we ensure that we calculate the correct amount of income tax and national insurance for our client’s employees, and advise the employer what they need to pay to the authorities. As an independent third party we help your management team with their governance responsibilities. We are ideally positioned to see that the rules on tax, national insurance and benefits are applied correctly. This gives owners and directors peace of mind when they outsource their payroll processing and management to us. Please contact our Birmingham based head office team to discuss your requirements.