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HMRC are offering users of contractor loan schemes the chance to avoid litigation over their tax affairs.
The schemes are complex arrangements by which individuals sign an agreement of employment with an offshore employer. They receive remuneration in the UK, through an offshore company or trust, in supposed non-taxable loans, rather than income.
HMRC are offering users of contractor loan schemes the chance to avoid litigation over their tax affairs.
The schemes are complex arrangements by which individuals sign an agreement of employment with an offshore employer. They receive remuneration in the UK, through an offshore company or trust, in supposed non-taxable loans, rather than income.
Participants in such schemes have until January 2015 to take up the settlement opportunity, which allow them to pay tax due and interest on the sums they received as loans. They risk having to pay additional tax charges and penalties if they challenge HMRC in the courts, the department said.
The new settlement opportunity applies to schemes used before disguised remuneration rules were introduced in April 2011. Around 16,000 taxpayers are eligible to take advantage of the opportunity. Each users of schemes covered owes an annual average of £11,000 in tax.
