Over the years, a number of agency workers and related workers, will have entered into arrangements to try to reduce their tax burdens. In certain cases, these may have involved Payroll Schemes run through the Isle of Man.
HMRC have been cracking down on such schemes for a number of years and have been successful in pulling them apart in a number of cases. With the original scheme providers often no long in existence, the tax is pursued from the end users of the scheme, potentially leading to financial hardship, especially when interest and penalties are also brought into the equation.
In appropriate circumstances, the Isle of Man Disclosure Facility (MDF) could provide an option for users of such schemes to come forward and pay the tax at a reduced penalty rate. The MDF provides a useful framework for making disclosures and would enable the taxpayer to start again with a clean slate. In our experience, this feeling of relief is often the most significant outcome for clients from disclosing.
Eaves and Co have had extensive experience in dealing with the Liechtenstein Disclosure Facility, which operated in a similar manner, and can bring this experience to bear in assisting with a disclosure under the MDF.
For more details on the terms of the MDF, please see our earlier post here. If you think you may be able to benefit from the MDF, please do not hesitate to contact us.