The 7 Tax Avoidance tricks that Contractors play – HMRC

Tax Avoidance Tricks
Tax Avoidance Tricks

Tax Avoidance Tricks

According to HMRC there are 7 tax avoidance tricks that contractors set up that may well be caught by the Section 660a settlements legislation. HMRC are aware of them.

HMRC List Tax Avoidance Tricks

They are the following:-

  1. Shares subscribed at par that carry only restricted rights
  2.  Shares given away that carry only restricted rights
  3.  Shares subscribed at par in a company by one person where the income of the company derives mainly from a different person
  4.  A share in a partnership gifted or transferred at below value
  5.  Dividend waivers
  6.  Situations where dividends are paid only on certain classes of share
  7.  Dividends paid to the settlor‘s minor children

These are the main tax avoidance tricks used by contractors.

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