Road Haulage Association welcomes HMRC success
The Road Haulage Association notes with interest HMRC's successful court case against a former managed service company (MSC) that encouraged individuals to set up limited companies in order to avoid income tax and national insurance.
Costelloe Business Services provided a £9 million tax avoidance scheme in which users of the scheme took their remuneration by way of a small salary, expenses and a large dividend. The dividend did not attract PAYE and NICs.
After its success at the first-tier tribunal, HMRC said: “This win is yet another reason for people to get out of avoidance and stay out, proving tax avoidance doesn’t pay. HMRC is relentless in closing down avoidance schemes and we encourage users of similar products operated by CBS and other managed service company providers to settle their outstanding tax or NICs enquiries now.”
While users of the CBS scheme did not include lorry drivers, the scheme was very similar to practices known to be in use in the transport industry. The RHA welcomes the judgement and will be highlighting its relevance to the haulage sector.
