HMRC to target ‘misleading’ ads for tax avoidance schemes

HM Revenue and Customs (HMRC) and the Advertising Standards Authority (ASA) have launched action to work together in order to cut out misleading marketing by promoters of tax avoidance schemes, including stamp duty.

The joint enforcement notice is designed to disrupt the activity of promoters and protect people from being presented with misleading adverts which may tempt them into tax avoidance, according to the Treasury.

It requires promoters to be clear about the potential consequences of tax avoidance in any online adverts, including schemes designed to get around stamp duty and income tax.

Immediate sanctions include having their paid advertising removed from search engines and follow-up compliance action, which can include referral to Trading Standards.

The ‘Tax avoidance: don’t get caught out’ campaign will warn and educate contractors about how to identify if they are being offered a tax avoidance scheme, and the pitfalls of using these schemes.

Jesse Norman MP, the financial secretary to the Treasury, commented: “The government has made clear its determination to clamp down on the promoters of tax avoidance schemes.

“HMRC and the ASA are taking an important further step in this direction by action against misleading advertisements by promoters.

“As always, we would encourage people to pay close attention to HMRC’s warnings not to enter tax avoidance schemes. If it looks too good to be true, it almost certainly is.”

Jim Harra, chief executive and first permanent secretary of HMRC, said: “We’re doing our part to close down these schemes and make it difficult for promoters, but we need the public to play their part too.

“You really don’t need to be a tax expert to spot an avoidance scheme – anything that sounds too good to be true almost certainly is.”

He added: “That’s why we’re starting a big push to encourage taxpayers to steer clear of tax avoidance schemes. This is part of HMRC’s wider work to make it much harder for promoters to operate.”

Miles Lockwood, director of complaints and investigations, ASA, said that this notice serves as a clear warning to promoters of tax avoidance scheme.

He commented: “Get your houses in order and ensure your ads comply with the law and our advertising rules or face enforcement action.

“There can be a real consumer detriment for those who unwittingly following bogus tax avoidance advice – you could find yourself facing a significant tax bill.

“Working with bodies such as the HMRC is helping us to better protect consumers from misleading and unfair advertising that can leave them out of pocket.”

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