EnglishHindiItalianNepaliPortugueseRomanian

Tax scheme promoter defeated

Accountants in Glemsford | Accountants in Hasketon | Accountants in Stalybridge | Accountants in Swinton | Accountants in Cwmbran | Accountants in Lavenham | Accountants in Battersby | Accountants in Bempton | Accountants in Stratton Hall | Accountants in Sweffling | Accountants in Thorns | Accountants in Wattisfield | Accountants in Worlingham | Accountants in Dresden Dales Green | Accountants in Little Wyrley | Accountants in Marchington | Accountants in Streethay | Accountants in Abbey Hulton | Accountants in Alsagers Bank | Accountants in Churchbridge | Accountants in High Offley | Accountants in Seighford | Accountants in Mavesyn Ridware | Accountants in Spath | Accountants in Abbotrule | Accountants in Lilliesleaf | Accountants in Antonine

Tax scheme promoter defeated

The First-Tier Tribunal (FTT) has recently published its decision in a long running case that focused on tax planning arrangements. This important decision represents a significant win for HMRC against a tax avoidance promoter in a case that has been before the FTT since June 2018. The firm in question launched and promoted an arrangement known as the Alchemy scheme. The FTT was clear that this scheme was inherently implausible from the outset.

The scheme involved selected employees (usually directors) entering a high-risk form of gambling, known as spread betting. The scheme’s intended result was a tax-free betting win for the individual employee, which was taken instead of taxable employment income, and a tax-deductible expense for the company.

HMRC has said that the decision by the FTT could lead to the recovery of £2.4 million in tax and National Insurance Contributions (NICs) in this specific case, with a further £110 million in related cases. The FTT also agreed with HMRC’s argument that Disguised Remuneration legislation would apply to the arrangements.

The decision in this case is likely to be appealed.

Proud to be featured in

Happy with our services? Please leave us a Google Review. Click here

Google Review Stars