Tax Avoidance

(asked on 1st December 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether HMRC received legal advice supporting the pursuit of employees rather than employers for use of loan schemes.


Answered by
Lucy Frazer Portrait
Lucy Frazer
Financial Secretary (HM Treasury)
This question was answered on 9th December 2021

The long-standing basis of the UK income tax system is that individuals are responsible for paying their tax liabilities. Individuals are therefore liable for tax on their income received through disguised remuneration avoidance schemes, whether as a loan or in some other form.

Where there is an employer, the employer may be obliged to operate PAYE on the payments to their employees. In these circumstances, HMRC in the first instance, and wherever possible, seeks to recover the tax due through PAYE from the employer. However, the employee remains the person liable to the income tax and in some circumstances the law allows HMRC to recover the tax due directly from the employee.

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Recent Speeches related to Tax Avoidance

1. 2019 Loan Charge
20/11/2018 - Westminster Hall

1: this House has considered the effect of the 2019 loan charge.I will take a moment to say how glad I am - Speech Link

2. Oral Answers to Questions
07/09/2021 - Commons Chamber

1: insolvency proceedings against any taxpayer for a loan charge debt. No estimate can be provided for the - Speech Link
2: public sector workers who have been caught up in the loan charge. They took work via agencies that basically - Speech Link
3: Lady to the very wise words of the former shadow Chancellor, the hon. Member for Oxford East (Anneliese Dodds) - Speech Link

3. Making Tax Digital for VAT (Economic Affairs Committee Report)
29/04/2019 - Lords Chamber

1: Finance Bill Sub-Committee’s report on the powers of HMRC. Perhaps I will leave those who do not wish their - Speech Link

4. Finance Bill (Eighth sitting)
16/06/2020 - Public Bill Committees

1: the type of fuel that private pleasure craft can use and not the amount of fuel duty users pay. They already - Speech Link

5. Oral Answers to Questions
21/05/2019 - Commons Chamber

1: contrived form of tax avoidance that involves a loan, which there is never any intention of repaying - Speech Link
2: on a BP Norway project. Why is he being pursued rather than BP Norway and the other companies, such as - Speech Link
3: been from employers, not employees, and we are actively pursuing the promoters of these schemes in exactly - Speech Link

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