Hefty fines proposed for companies aiding tax avoidance

ACCOUNTING firms who help tax avoiders could face fines of up to 100 per cent of the amount they helped someone to avoid paying, under radical new proposals announced today.

Currently accountants and tax advisers face little risk from advising on tax avoidance, despite avoiders themselves facing significant financial costs if caught.

But in plans set out in a HMRC consultation document, the risk of tax avoidance will now be spread out to include those who advised on or facilitated the avoidance.

The HMRC hope it will deter those who put together such schemes.

It comes just after HMRC announced millions of small firms will have to file quarterly tax returns online or face being fined.

Financial Secretary to the Treasury Jane Ellison will say: “People who peddle tax avoidance schemes deny the country of vital tax revenue and this government is determined to make sure they pay.

“The vast majority of their schemes don’t work and can land their users in court facing large tax bills and other costs.

“These tough new sanctions will make would-be enablers think twice and in turn reduce the number of schemes on the market.”

HMRC announced on Monday that millions of companies and individuals earning more than £10,000 will need to file their returns quarterly online - or face hefty fines.