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HMRC recently released a page on their site called 'Spotlights' containing advice on how to limit your exposure to tax avoidance. It's one of the most well thought out and readable pages that has ever appeared on the HMRC site, and I urge you to go and check it out. It runs through everything from things "to be wary of" down to specific schemes which they

"....consider have the widest implications and about which there is the greatest need to warn potential users."

HMRC normally refuse to comment on any sort of tax avoidance so for them to be doing so now shows a significant change in attitude, and not one to be taken lightly. The page takes time to mention a wide variety of schemes including but not limited to offshore companies, schemes said to be approved by HMRC and Employee Benefit Trusts; the latter of which earns itself several paragraphs.

Some of you at this point might be wondering why HMRC are talking about tax avoidance rather than tax evasion, when tax avoidance is the term for legally reducing tax? Well that distinction is true for the US, but here in the UK where we like our sauces browner and our laws greyer, tax avoidance is the term used for following the letter of tax law rather than the spirit of it, making avoidance still potentially illegal.

It's actually very welcome to see HMRC come out and say something, especially something as strong as

"Where we see such schemes being used, subject to the particular facts, we will make a challenge and seek to ensure full payment of the right tax with the right due date."

Given the state of the deficit, public sector finance and the pressure on HMRC in general to pull in money you can be fairly certain that not only will they be making the challenges they talk about, there is a high chance that they will be successful.

Go take a look, it really is quite an eye opener.

Well it's the weekend and the world cup has started; whether you love it or hate it you're not going to be able to avoid it, so I suggest buying some meat and 'refreshments' for a bbq in the sun or sitting back and enjoying it, I know what I'll be doing.

Look after yourselves and best of luck to you no matter what team you support.

Hugo
@GabemUmbrella
11/06/2010