HM Revenue & Customs (HMRC) has issued a strong warning to taxpayers and workers to remain vigilant and watch out for signs of tax avoidance on their payslips. The tax authority reminded everyone that “everyone is responsible” for paying the correct amount of tax under UK law.
HMRC took to social media to alert workers: “Don’t get caught out by these tax red flags. Everyone can learn to spot the signs of tax avoidance.” Red flags include receiving more money in your bank account than what appears on your payslip, or being paid through unusual means such as loans or “capital advances” that are untaxed.
The tax authority emphasized that if individuals have participated in tax avoidance schemes, they will be required to pay the tax owed plus interest. HMRC advised workers to verify whether their employer or umbrella company is accredited by a recognized payroll auditing body that enforces strict codes of legal and ethical conduct.
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Importantly, HMRC stressed that no tax avoidance scheme or umbrella company is approved or endorsed by the agency. Claims of being “HMRC approved” should be treated with suspicion. Workers are encouraged to thoroughly research any umbrella company before engaging with them.
HMRC maintains a regularly updated list of known tax avoidance schemes and promoters, though the list is not exhaustive. Absence from the list does not imply a scheme is legitimate or HMRC approved.
The message is clear: if you suspect you might be involved in a tax avoidance arrangement, contact HMRC promptly for support. Being proactive can help resolve issues and avoid penalties.