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Revenue and Customs: Tax Avoidance

Question for Treasury

UIN 185362, tabled on 21 April 2021

To ask the Chancellor of the Exchequer, what assessment he has made of the implications for his policies of HMRC's reported use of contractors using disguised remuneration schemes.

Answered on

29 April 2021

The careful and considered Independent Loan Charge Review found that it was right to tackle disguised remuneration (DR) tax avoidance and that everyone should pay their fair share of tax.

HMRC do not engage in, or enter into, DR schemes. It is possible for a contractor providing services to HMRC to use a DR scheme without the department’s knowledge or participation. Where HMRC become aware of a contractor who is using a DR scheme, they take robust compliance action, including immediate action to terminate the engagement. These individuals are subject to the same tax compliance action in respect of their DR scheme use as any other scheme user.

Answered by

Treasury