HMRC wins court victory against tax avoidance promoter
The business promoted a disguised remuneration avoidance scheme, whereby participants were paid enough to comply with the national minimum wage and the rest of their income was provided to them in the form of loans. This enabled them to avoid paying income tax and National Insurance contributions.
Hyrax now has to provide HMRC with the above information, or be forced to pay a penalty fee of £6 million plus an extra £5,000 for each day it doesn’t comply. It is hoped that this will allow HMRC to collect over £40 million in unpaid taxes.