Baker Tilly tax partner and former chairman of the ICAEW Tax Faculty, David Heaton, has stepped down from the General Anti-Abuse Rule (GAAR) advisory panel after being filmed telling a conference how to keep money out of the Chancellor’s “grubby mitts”.
The presentation was covertly recorded in June by the Panorama programme, which is now available on BBC iPlayer, and catches Heaton suggesting tips for reducing tax by changing National Insurance contributions (NICs) arrangements.
This included a scheme he called the ‘Bump Plan’ which involved timing bonuses to enable an increased rebate on maternity pay.
“90% of what you pay out ends up with the employee. You can't really knock that one,” he said. By deliberately timing bonuses to enable an increased rebate on maternity pay, the tax paid on the bonus would effectively fall from 41.8% to just 8.4%, he said.
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