tax avoidance scheme Articles

HMRC harpoons new ‘loyalty points’ umbrella scheme as a disguised renumeration tax avoidance scheme

HM Revenue and Customs has warned taxpayers that it is aware of a new ‘tax avoidance’ umbrella scheme in which contractors are paid, in part, with loyalty points that can be redeemed for ‘tax free’ income.

The tax authority has said that they consider the umbrella scheme to be against the rules of disguised remuneration and that users of the scheme will have their tax affairs investigated.