Is this tax scheme too good to be true?

Without hearing the details of the scheme, you know as well as we do that the answer is ‘Probably’!

Nobody likes paying tax, and of course you never want to pay a penny more than you have to. However there are hundreds of creative tax schemes out there looking to entice you on the promise of a minimised tax bill.

How can you protect yourself?

If you don’t have a detailed understanding of tax law it’s difficult to know whether the scheme you’re considering is compliant.

At A4C we are often asked for our advice on various schemes and have therefore created a list of the mechanisms used by many avoidance schemes, which we hope will help you identify the things you should be wary of:

The arrangements in place sound a little too artificial
It all seems very complex and overcomplicated
There appears to be no risk, yet you are promised guaranteed returns
There are secrecy or confidentiality agreements
The scheme claims to have the backing of a top accountancy firm or lawyer
The scheme is said to be approved by HMRC
Offshore companies or trusts are involved
There are exit arrangements in place to avoid tax consequences
The scheme requires you to take out insurance against its failure to deliver the tax benefits.

Basically, if any tax scheme sounds too good to be true, the chances are, it probably is!

If you’d like a free and friendly chat about the way you have your business finances arranged then reply to this email or call Esther or Natasha at A4C today on: