Scheme reference number was correctly allocated

The taxpayer was an umbrella company which supplied contractors to clients on short term contracts. It paid the contractors the national minimum wage subject to deductions for income tax and National Insurance and a Maltese company paid the contractors a further payment without such deductions.

HMRC allocated a scheme reference number to these arrangements on the basis that it had reasonable grounds to suspect that they were notifiable arrangements under the disclosure of tax avoidance schemes (DOTAS) regime and the taxpayer was a promoter of those arrangements.

The taxpayer appealed saying HMRC had failed to act in accordance with the legislation and the arrangements were not notifiable. 

The First-tier Tribunal confirmed that under FA 2004 s 113B the burden of proof rested with the taxpayer. So it was for the taxpayer to provide any material showing that it was not involved in the supply of arrangements ...