Could there be tougher punishment for tax avoidance?

Like all good things (umbrella providers), there are always a few bad eggs that ruin it for the rest of us (tax avoidance schemes). While the majority of brollies adhere to compliant practices, the government has recognised the gravitas of the situation when it comes to non-compliant companies. 

As a result, it has launched a consultation to explore more stringent consequences for tax dodgers and is seeking feedback from everyone in the industry from freelancers to umbrellas.

Carry on reading to find out more about how to get involved, as well as the key takeaways from the consultation. 

Overview of the proposal 

The government has proposed to criminalise the act of non-compliance with a Promoters of Tax Avoidance Schemes (POTAS) Stop Notice. It added that it was interested in “[expiditing] the disqualification of directors of companies who are involved in the promotion of tax avoidance, including those who control or exercise influence over a company.”

Led by Tony Zagara from HMRC, the consultation ‘Tougher consequences for promoters of tax avoidance’, will run from 27 April 2023 to 22 June 2023. 

Want to have your say? 

If you work within the contractor payroll and recruitment space then the UK government is keen to hear from you! Especially if you’re familiar with the following:

• You work or have worked under an umbrella provider
• You’ve been advised to work with an umbrella company before
• You’ve been involved with a tax avoidance scheme previously (whether intentionally or not) 
• You work in recruitment and umbrellas are on your radar 
• You employ contractors/freelancers 
• You work for a non-compliant organisation (suspected or known) 
• You work for a compliant/accredited umbrella and want to share positive experiences

Share your thoughts via email at [email protected] before June 22.

If you’re on the hunt for a Professional Passport approved umbrella, then look no further! Drop our lovely team an email via [email protected] to get started on your umbrella contracting journey.