HM Revenue and Customs (HMRC) has identified five UK accountancy firms as having taken fees for steering clients into a tax avoidance scheme promoted by B2BTradecard Limited.
The disclosure forms part of HMRC’s ongoing crackdown on marketed tax avoidance schemes.
The firms named are HB&O Ltd, Ojak Consultancy Limited, Atlas Accountancy Limited, Henry Bramall & Co Limited, and Roelken Limited.
Management companies involved in the referrals include Harrison Beale & Owen Management Services Limited and SPM Management Consultancy Ltd.
HMRC found that the accountancy firms received payments under so-called ‘Introducer Agreements’, where fees were calculated as a fixed percentage of the amounts their clients spent on the arrangements.
HMRC’s director of counter avoidance, Jonathan Smith, said:
“Promoting tax avoidance is unacceptable. Accountants and tax advisors should give their clients sound advice, not steer them towards schemes that can result in large tax bills.
Naming the people involved in promoting tax avoidance schemes is a crucial step in helping customers stay clear of current and future schemes they might promote.
We understand that facing unexpected tax bills can be stressful and we urge any users of this scheme to contact us immediately so we can help them settle their affairs.”
The scheme targeted by HMRC allowed clients to claim tax deductions for purchases described as “advertising services” from B2BTradecard Limited, before receiving up to 80% back via prepaid cards.
HMRC regards this arrangement as disguised income, which should have been taxed as normal earnings. Some of the accountancy firms involved also provided tax and audit services for the same clients while earning referral commissions.
The move comes amid wider government efforts to tackle tax avoidance. HMRC’s list now includes more than 170 named schemes and promoters.
Recent policy changes include strengthened rules for umbrella companies, updated rules on liquidations of limited liability partnerships, and proposals for a new criminal offence for promoters failing to disclose schemes.
The government has also introduced a reward scheme for informants targeting serious non-compliance.