HMRC Disguised Remuneration Schemes Advice

Disguised Remuneration Schemes are currently the subject of a major HMRC crackdown. They are unlawful strategies that exist to attempt to avoid the correct payment of tax and generate unlawful financial gain. These schemes use the basic format of a legitimate Employee Benefit Scheme, but include a few fundamental differences. Specifically, the financial rewards that are paid out to directors and employees are awarded as “loans” and not as direct payments that are subject to taxation. Genuine loans are intended to be repaid and so they are not liable to be taxed.

In the case of a Disguised Remuneration Scheme, however, the amount of the “loan” is not intended to be repaid and the employee receives the full amount with no apparent requirement to pay tax on it. This amounts to tax avoidance or in some cases, tax evasion, and employers and users are liable to pay the tax avoided with interest and in some cases, tax penalties.  HMRC have offered a settlement opportunity to avoid the charge on loans and this will involve a disguised remuneration calculation which can be quite complex to complete in full.

Frequently Asked Questions

Other Practice Areas

Income Tax Fraud

Representation in income tax fraud investigations.

Read More

Money Laundering

Advice in Money Laundering Accusations and Cases

Read More

Offshore Disclosure Facility

Offshore Disclosure Facility and Voluntary Disclosures

Read More

Tax Avoidance Schemes

The mis-selling of aggressive tax avoidance schemes.

Read More

GAAR & Enabler Penalties

GAAR Penalties and Enabler Penalties.

Read More

Civil and Criminal Tax Investigations & Disputes

HMRC civil and criminal tax investigations and disputes.

Read More

Stamp Duty Land Tax

Tax advice and representation in Stamp Duty Land Tax.

Read More

Make An Instruction

If you wish to instruct me please provide your details below and we will get back to you with the necessary documents.

Office Address

Old Square Tax Chambers
15 Old Square
Lincoln's Inn