HMRC advises of new tax avoidance scheme!

[Michael at BI Accountancy]

Payment in way of redeemable loyalty points https://www.gov.uk/guidance/disguise...e-spotlight-37

[MrMarkyMark]

Payment in way of redeemable loyalty points https://www.gov.uk/guidance/disguise...e-spotlight-37

The contractor becomes an employee of an umbrella company and is then paid in two parts. The first part is a small basic wage with little or no tax and NICs deducted. The second part of the payment is used to advertise the contractor’s services on a job board.

They immediately receive loyalty points in return for keeping their details on the job board. The loyalty points can be cashed in by the employees shortly after, with no deductions made for tax or NICs. The contractor usually has to pay a large fee to the third party running the job board.

[cojak]