Disclosure of tax avoidance schemes for VAT and other indirect taxes

HMRC has published a new Notice 799 that provides guidance and instructions on the new disclosure rules for indirect tax avoidance schemes that came into effect on 1 January 2018. It should be noted that parts of this 75-page notice are tertiary legislation that have the force of law.

The notice states what to do if you promote or use arrangements (including any scheme, transaction or series of transactions) from 1 January 2018 that will, or are intended to, provide the user with a VAT or other indirect tax advantage when compared to adopting a different course of action. It includes information on:

  • what arrangements must be disclosed to HMRC (notifiable proposals and notifiable arrangements)
  • who has responsibility to disclose notifiable proposals or arrangements to HMRC
  • deciding if you’re a promoter of notifiable proposals or arrangements
  • deciding if you’re an introducer of a notifiable proposal
  • what your obligations are as a promoter of notifiable proposals or arrangements
  • what your obligations are as an introducer of a notifiable proposal
  • what your obligations are as a user of notifiable arrangements including when you have responsibility to disclose the arrangements to HMRC
  • how to make a disclosure to HMRC

The indirect taxes covered by the new rules are:

  • VAT
  • Insurance Premium Tax
  • General betting duty
  • Pool Betting Duty
  • Remote Gaming Duty
  • Machine Games Duty
  • Gaming Duty
  • Lottery Duty
  • Bingo Duty
  • Air Passenger Duty
  • Hydrocarbon oils duty
  • Tobacco products duty
  • Duties on spirits, beer, wine, made-wine and cider
  • Soft Drinks Industry Levy
  • Aggregates Levy
  • Landfill Tax
  • Climate Change Levy
  • Customs duties
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