Section 660A – the family or 'husband & wife' tax

Why does it matter to contractors? Because HMRC doesn't like 'settlements' - where an asset or income stream is transferred by one family member to another - to avoid tax.

Many small businesses and contractors try to avoid their full tax burden by using a limited company as an intermediary, with the husband and wife - or other close family members – holding shares in the business.

HMRC is enthusiastically enforcing S660A by going after 'husband & wife' companies. If any family member holds more than 5% equity, everyone becomes subject to S660A and IR35.

Avoid coming under the HMRC microscope. Join Tarpon: maximise your net income, minimise your hassle, and stay completely legal.

To speak to one of our tax experts call 0845 643 1580.