HMRC clamps down on contract for difference scheme

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HMRC has told employers using tax avoidance schemes involving "contracts for difference" to pay tax they owe to avoid legal action.

HMRC said that a number of tax-avoidance schemes, based on contracts for difference, are being used by some businesses to provide tax free or tax reduced rewards to their employees. One of the schemes is known as the "Growth Securities Ownership Plan".

Under these schemes each employee acquires a contract for difference which entitles the employee to receive a cash payment at a pre-determined date provided a pre-determined hurdle is achieved (often referred to as the “upside”).

The schemes vary in their detail, and the hurdle can be linked to company performance or other measures such as the disposal of the c...

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05th Feb 2016 18:34

Swift? It's all relative I suppose
" HMRC considers these schemes and arrangements to be ineffective, and will act swiftly and rigorously to challenge such cases, HMRC said"

Really? I have a client who has used one of these schemes, it's taken 4 years for HMRC to even enquire into it. "Swift" appears to have 2 very different meanings.

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11th May 2016 08:54

"Really? I have a client who has used one of these schemes, it's taken 4 years for HMRC to even enquire into it. ...."

That's the trouble --> HMRCy monitoring is really hit/miss so loads of my clients get away with things, and then allege it's accepted by HMRCy, when in fact they just haven't noticed - which is entirely different.
Electronic analysis of accounts by HMRCy would yield them £millions for little effort

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05th Feb 2016 19:15

I think

You'll find it's taken them nearer 6+ years to get to grips with this GT scheme. Why they don't just block it retrospectively I have no idea.

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11th May 2016 08:51

well there you go, it's slowing down Google/Amazon/Starbucks/Apple, good job too

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