HMRC aiming for £7.1 billion of tax recovery from Avoidance schemes by January

[BlasterBates]

As K Rotberg v HMRC shows, even if they tell you "yes", there's nothing to stop them later saying "no" and clobbering you.

Well mishaps happen, agreed she did the right thing and got caught out. But the decision now means she can easily claim damages from her tax advisor.

If anyone were to ask HMRC's opinion on an offshore scheme they would be told bluntly it would not be acceptable. So this case isn't really comparable.

[TheFaQQer]

When I was taught tax avoidance doing my certificate in accountancy all the stuff that was avoidance were things you could phone up and get a "yes" from a tax inspector.

As K Rotberg v HMRC shows, even if they tell you "yes", there's nothing to stop them later saying "no" and clobbering you.

[BlasterBates]

If the avoidance you have is something you can discuss with a tax inspector and all he does his nod his head in agreement is legitimate tax avoidance. He aint going to question pension contributions. It's the "wink wink nudge nudge this is a donation to a charity for the benefit of my new Ferrari" stuff they don't like.

When I was taught tax avoidance doing my certificate in accountancy all the stuff that was avoidance were things you could phone up and get a "yes" from a tax inspector.

Things have definitely changed since those days, so personally I'm not really surprised they're clamping down.

[TechJinx]

I hate the phrase "avoidance schemes"...because it means different things to different people.

Couldn't agree more, pensions and ISAs are avoidance schemes.....

as soon as you say the word avoidance to the general public they think of Jimmy Carr and Gary Barlow.....

Flat rate of tax for everyone and this all goes away. (probably).....

[Maslins]

I hate the phrase "avoidance schemes"...because it means different things to different people.

I personally would think it included the Isle of Man EBT type schemes, where you get "loaned" lots of money which you never have to repay. Things that need a "DOTAS".

However, I'm sure there are plenty of people out there (including many politicians) who think a contractor paying a trivial salary, lots of dividends, possibly in part to a spouse, are a form of "avoidance scheme".

It's yet another thing where there's ambiguity in the tax world.

[Alan @ BroomeAffinity]

They certainly do seem to be ramping up their activity in this area. We've had a few clients who were involved in schemes in the past receive letters in the recent weeks. Worrying times for these folks.

[TheFaQQer]

It's not cash until it's in the bank.

Not quite - HMRC and HMT have a tendency to include things like the estimates of how much people have been scared into paying as "tax recovered", and in the past have just made numbers up to get an impressive headline figure.

Last time it was "over £20bn recovered", which turned out to include £13bn of money that they hoped to get in the future, which then never arrived.

[northernladuk]

It's not cash until it's in the bank.

[TechJinx]

https://www.lovemoney.com/news/39165...m-tax-avoiders

Starting with £250m already sent out. Thats a lot of cash....