HMRC is urging people to check their payslips for signs of possible tax avoidance as it warned ‘don’t get caught out’. HMRC has issued urgent advice, with just a few days to go until the new tax year begins on Sunday, to tell people – even those on traditional PAYE jobs paid monthly – to check their payslips for any odd signs.
The tax office tweeted: “Everyone can learn to spot the signs of tax avoidance. Don’t get caught out.” It continued: “Understanding how you’re being paid is the best way to make sure you don’t get caught up in tax avoidance. This applies to people in PAYE as well as Self Assessment. “Checking your payslips and contractual arrangements will help you confirm you are paying the right amount of Income Tax and National Insurance contributions. Doing this will mean you avoid getting an unexpected tax bill later.”
HMRC said that the signs to look out for include receiving more money in your bank account than what was shown on your actual payslip, as well as receiving untaxed payments, like loans or capital advances.
It continued: “The money you receive in your bank account should match the net pay on your payslip. To understand more about what your payslip should look like, read our payslip guide.
“We can help you. Check our list of tax avoidance schemes that we’ve named. If you are involved in any of the tax avoidance schemes shown on the list, you should get in touch with us as soon as possible.
Please keep in mind that this is not a complete list of all tax avoidance schemes currently being marketed.
If a tax avoidance scheme is not shown in the list, this does not mean that the scheme works or is in any way approved by HMRC.”
It added that this also applies to those working for umbrella companies, as it said: “If you’re a contractor, you may be employed through an ‘umbrella company’. If you’re not sure, it’s best to check as some umbrella companies try to break the tax rules.
You may be at risk. But if you understand how umbrella companies work, you can take steps to avoid these risks.”
