Offshore Companies Named As Tax Avoidance Promoters - HMRC Warning

3rd May 2023

HM Revenue and Customs (HMRC) has named two Belize registered companies as promoters of a tax avoidance scheme in the UK.

Minerva Services Ltd and Buckingham Wealth Ltd, who share the same official business address in Belmopan, the capital of Belize, were promoting and marketing a tax avoidance scheme known as the Umbrella Remuneration Trust (URT). The scheme used complex, offshore, financial arrangements so that Income Tax and National Insurance contributions were not correctly paid.

The Trust received contributions from the scheme users, UK companies and self-employed people who claimed the contribution as a deductible Corporation Tax or Income Tax expense. When the money was transferred back to the user, no taxes were paid.

Mary Aiston, HMRC's Director of Counter Avoidance, said, "These cynically marketed tax avoidance schemes don't work in the way the promoters claim and users can end up with big tax bills."

"Over the last year we have published the details of 33 tax avoidance schemes and exposed the unscrupulous promoters behind them. HMRC has also published details of 11 Stop
Notices issued to promoters, and is consulting on adding a criminal sanction for promoters who breach those notices.

"We will continue to take strong action against those who promote and market tax avoidance schemes and remain committed to supporting taxpayers to steer clear of or exit tax avoidance."

HMRC has published a newsletter that was circulated by Buckingham Wealth Ltd and Minerva Services Ltd to their clients. It encouraged URT users to start making replacement contributions to a newly founded scheme called the Nova Trust.

The newsletter incorrectly claimed that changing schemes would end HMRC's investigations. This is not the case, and HMRC are continuing to challenge these arrangements.
See https://www.gov.uk/government/publications/named-tax-avoidance-schemes-promoters-enablers-and-suppliers/evidence-of-marketing-material-used-by-tax-avoidance-promoters-and-suppliers

HMRC is encouraging taxpayers to be vigilant and to stay out of tax avoidance. As part of its "Don't Get Caught Out" campaign, HMRC is reminding taxpayers that the consequences of using tax avoidance schemes can be severe, including additional taxes, interest, and penalties, as well as reputational damage.

If someone has used a tax avoidance scheme promoted by Minerva Services Ltd, Buckingham Wealth Ltd or any other promoter, HMRC is urging them to make contact by emailing: CAGetHelpOutOfTaxAvoidance@hmrc.gov.uk