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ACCA member using tax avoidance schemes

What will be the consequences

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What will be the consequences of ACCA or CIMA member using the tax avoidance schemes such as annuity payments or loan arrangement or some other schemes?

I want to do some contracting work and few umbrella companies have contacted me regarding these schemes.

Do you think ACCA can take any disciplinary actions against the member for using it? It is not strictly illegal but morally not correct perhaps.

 

 

Replies (15)

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By thestudyman
30th Aug 2019 07:09

Just like for non members, HMRC may find out about it and come after you, if they interpret the scheme as tax evasion. ACCA can also discipline members for using or promoting unethical tax avoidance schemes.

If you really want to use an umbrella company, then do your research. The Contractor UK forums is a good place to start for someone new to contracting and there are plenty of discussions on there about who is the best umbrella. Avoid the companies where they promise your net pay is this % (usually something crazy high like 85%), or loan schemes in its entirety.

Alternative is to work through your own limited company as a PSC. There might be IR35 implications but if you are genuinely self employed (according to HMRCs own tests) then this should not worry you. But do have a contract professionally reviewed.

Safest option is through a recruitment agency.

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By JoF
30th Aug 2019 09:18

PII insurers usually ask if you arinvolved in such as well, so that could cause an issue for you.

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By ireallyshouldknowthisbut
30th Aug 2019 10:00

Is this something that actually works? Ie legitimate tax planning?

Or one of the 101 dodgy schemes sold by people after 10-15% of your income and will be gone in a flash by the time HMRC come knocking?

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By paul.benny
30th Aug 2019 10:32

Is the scheme one you would be completely happy recommending to friends or family?

If not, stay away

You’re an accountant. Even if you’re not a tax specialist, you should be able to understand how an arrangement delivers a tax saving.

If not, stay away

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By Tax Dragon
30th Aug 2019 10:39

Ask for the AAG7.

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Replying to Tax Dragon:
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By SWAccountant
30th Aug 2019 10:53

lol, so you can get make sure you get an APN?

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Replying to SWAccountant:
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By Tax Dragon
02nd Sep 2019 13:48

More as a potential clue to the kind of organisation you are dealing with - see the other comments today below.

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Replying to SWAccountant:
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By itp33asso
03rd Sep 2019 11:15

......or a VPN even....

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By Universe
31st Aug 2019 08:12

Its an annuity umbrella scheme. I am only planning it to do it for 2 years and then go limited.

I have two options.

Trade through Limited company and fall short of ACCA practising certificate requirement. All ok as far as HMRC is concerned. My experience may also get rejected for PCTR purposed.

Trade through an umbrella company. My experience will count towards PCTR and this approach is also acceptable to ACCA. The only problem is if I use those 80 percent net income scheme and HMRC questions it then I will be in trouble and they may report it to ACCA.

What are the chances of HMRC reporting it to ACCA and ACCA expelling me from the membership?

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Replying to Universe:
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By Tax Dragon
31st Aug 2019 09:32

Universe wrote:

What are the chances of HMRC reporting it to ACCA and ACCA expelling me from the membership?

Why take such a huge risk for such a tiny reward (which is most likely only temporary anyway)?

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By Richard Grant
31st Aug 2019 11:38

Have a look at this thread and then decide against it. https://www.contractoruk.com/forums/hmrc-scheme-enquiries/117124-another...

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By Jdopus
02nd Sep 2019 08:49

If you agree to it as an accountant you deserve to handle the consequences of it.

HMRC knows these schemes inside out now and any attempt to enter into them will end with you getting a tax enquiry letter within about 3 months of entering them. I spent two years getting a number of contractor clients out from under such schemes and just last month I got letters addressed to two of them who told me they were returning to PAYE but who instead got the bright idea to go back into an umbrella company scheme - I have absolutely zero sympathy for them and no sympathy for someone who should be qualified enough to know b******t when they see it.

Sorry to be rude, but really, these companies are just fraudsters at this stage - they know they're totally compromised by HMRC and selling people schemes which don't work but they also know that HMRC go after the taxpayer and not them so they will keep selling these schemes for as long as HMRC continue to go after the easy win.

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Replying to Jdopus:
Hallerud at Easter
By DJKL
02nd Sep 2019 09:59

Agreed, and most of the purveyors of these dubious wares are small enough entities, mere will-o'- the- wisps, that it is unlikely there will be a PPI style misselling campaign in years to come, with a pot of compensation for the gullible/unwary , they will no longer exist but will instead have morphed into purveying the new brand of snake oil whatever that will be.

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By JCresswellTax
02nd Sep 2019 10:01

Honestly, don't do it. It's stupid and will come back to bite you on the [***] like it has for some of my clients (who I begged not to do it).

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By LostinSuspense
02nd Sep 2019 12:24

That you are asking on this forum means you have doubts in your mind. Whether tax is your area of expertise or not, because of your qualifications, the view is that you should have known better.

Remember the key 'bringing into disrepute' If you get caught in one and penalised (however small) and get your name in the paper (think 'crooked accountant on the fiddle'), what you get penalised for might be less than other individuals but yours will make the better headline and force the Institute's hand. Unfair yes but that's how it goes.

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