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Where Taxpayers and Advisers Meet

Umbrella tax avoidance - deliberate or careless?

Joined:Wed Jun 10, 2015 10:07 am
Umbrella tax avoidance - deliberate or careless?

Postby OffTheBall » Wed Jun 10, 2015 10:25 am

I was employed by a company in 05/06 and 06/07, who used to pay partially in loans from an offshore EBT.
HMRC are now saying that the PAYE tax needs to be paid on these loan payments.

HMRC had already opened an enquiry into my SA for 06/07, so depending on the outcome of the case, I may have to pay the PAYE for that year.

My question is regarding the other year (05/06), for which there was never an enquiry open, and is obviously more than 6 years ago. Can HMRC use the 20 year 'deliberate behaviour' rule, if everything I did was at the direction of my employer?

Many Thanks

Joined:Wed Jun 03, 2015 1:54 pm

Re: Umbrella tax avoidance - deliberate or careless?

Postby taxmenot » Wed Jun 10, 2015 11:01 am

Hi there,

This is something you need advice on really to see on what basis HMRC are making the claims.

There is a website dedicated to this which I have found useful


Joined:Wed Aug 06, 2008 3:39 pm
Location:Operate Nationally but based in Aberdeen

Re: Umbrella tax avoidance - deliberate or careless?

Postby wamstax » Wed Jun 10, 2015 12:15 pm

Is there either I have to ask?

Clearly this will all depend on the facts of each case and the arguments being advanced by HMRC.

Of course HMRC are not past making allegations of these taxpayer attributes without one shred of evidence and each case needs to be carefully examined to determine whether the taxpayer dealt with his tax liabilities in the manner that any reasonable man would do - guided as necessary by any professional tax advisers on who he was dependent and had confidence in - when it might be the case that there were neither careless nor deliberate types of conduct by the taxpayer.

You need careful advice from an experienced professional from the outset on this subject as incorrect strategy or response could actually give HMRC ammunition for alleging "negligence" - the old word for carelessness - or deliberate conduct.
regards and hope this helps
Operates Nationally with competitive costs
and email and phone contact (mob 07751720507) can be obtained from websites

Joined:Sat Feb 01, 2014 3:26 pm

Re: Umbrella tax avoidance - deliberate or careless?

Postby bd6759 » Wed Jun 10, 2015 11:08 pm

When parking my car yesterday I hit the car behind. Did I do it deliberately?

I don't expect anyone to answer that question given the sparsity of facts. Likewise, no-one can answer your question. The first issue here is that PAYE is accounted for by your employer, not by you. In order for you to be liable for this tax HMRC would need to show that you knew that the proper amount of tax was not being deducted by your employer. If they can show that, then they will also have a good case for deliberate.

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