HMRC proposes daily checks on tax avoidance firms


The taxman plans to clamp down on accountants who set up aggressive tax dodging schemes by checking rogue firms on a daily basis.

In plans launched this week by HM Revenue & Customs will propose regular checks on troublesome firms to kill tax dodging schemes before they can be implemented.

Current tax rules mean that anyone who sets up an avoidance scheme must tell Revenue & Customs within five days of starting to market the plan to clients.

HMRC can block schemes by changing the tax laws to close a loophole, but until then scheme organisers and tax dodgers have a short window before being closed down. Usually they try to target clients within a 48-hour window.

The Revenue can claim back tax from a scheme retrospectively but only in cases where rules have been unequivocally broken.

Under the new proposals outlined in the Disclosure of Tax Avoidance Schemes (DOTAS) consultation, officials will be empowered to monitor some accountants ‘in real time’, meaning they will see schemes as they are drawn up and can block them before anyone is signed up.

Officials are keen to target a small number ‘tax boutique firms’ who specialise in marketing personal tax avoidance schemes to wealthy individuals.

Under the new plans, HMRC are also hoping to introduce penalties for the users of such schemes which would come into effect if they do not pay up once the scheme has been defeated in the courts.


  • Date posted:
    31/07/2013
  • Share:

View all articles

We have always received great service

Mr W from Corby

I would recommend him to everyone who needs an accountant and have done so with all my friends who have gone freelance

Stevie, Rushden

has an uncanny skill of identifying exactly what you need and explaining it in a manner that is clear, concise and understandable

David, Langham

© 2018 Arcus Taxation Accountants is the trading name of Arcus Associates Ltd. Registered in England & Wales Company No. 05065405.

privacy / cookies

website cms powered by csb internet

01572 770552