Tax lost to marketed avoidance schemes continues to decline

HMRC has published its annual report on the use of marketed tax avoidance schemes in 2020-21. It states the estimated amount of tax the UK lost to marketed tax avoidance was around £0.4bn – compared with about £0.5bn in 2019-20. HMRC says the market continues to be dominated by disguised remuneration schemes largely operated or facilitated by non-compliant umbrella companies. Indeed according to the report disguised remuneration schemes made up 99% of schemes used by individuals.

The number of individuals using avoidance schemes in 2020-21 was 31 000 although this figure is declining year on year having peaked at 44 000 in 2017-18.

Most users were between the ages of 41 and 50 with 90% reporting an income of less than £50 000 a year. Hospital workers  and bookkeepers top the user list at 17% and 16%.

HMRC estimates that there are...