The Treasury and HMRC are getting really tough on contractors. There's IR35, IR56 and S660A. They're going after offshore employee benefit trusts and tax-motivated incorporation – people starting up limited companies to avoid tax. The 2006 Budget report targeted offshore and composite schemes for investigation, made some tax avoidance schemes illegal, and will let HMRC claim back taxes from members.
So if you're thinking of using an offshore scheme, composite company or personal services limited company, think again.
If it all sounds like a complex, ever-changing, expensive legal nightmare – it is. And as someone working for themselves, you can't afford to try being your own tax expert.
But it's not all bad news. Not only do HMRC allow flexibility by permitting employment benefits companies like us to exist, but they've given Tarpon a genuine and exceptionally good dispensation which means you can claim business expenses, legally and be highly tax-efficient, without needing to send us receipts for a large majority of them.
And the best bit of news is that we can do all your tax for you and keep you entirely legal.
To speak to one of our tax experts call 0845 643 1580.