UK businesses must disclose avoidance schemes relating to VAT, indirect taxes, direct taxes, Apprenticeship Levy and National Insurance contributions to HMRC under mandatory disclosure rules. The rules set out what constitutes a reportable avoidance arrangement and the timescales for notification. Failure to disclose qualifying schemes can result in penalties being applied to the business involved.
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Taxpayers who have participated in Annual Tax on Enveloped Dwellings avoidance schemes must use form AAG4(ATED) to notify HMRC of their assigned scheme reference number. This disclosure form enables the tax authority to track and record individuals and entities engaging in tax avoidance arrangements related to ATED liabilities. The form represents a mandatory reporting requirement for anyone who has been issued a scheme reference number by their tax avoidance promoter.
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HMRC has made its Non-Statutory Clearance Service accessible to all customers and their trade advisers. This service allows businesses and representatives to seek informal guidance on customs and trade matters before formal declarations or transactions occur. The clearance process helps organisations understand HMRC’s position on specific circumstances without committing to a formal ruling. Customers can use this service to clarify their compliance obligations and reduce uncertainty around customs procedures.
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HMRC requires employers to submit form AAG8 at year-end to disclose information about employees involved in tax avoidance arrangements. This notification form applies to employers who need to report details of any avoidance schemes in which their staff have participated. The AAG8 filing ensures HMRC receives required information about potentially non-compliant tax arrangements involving employees.
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HMRC has published guidance setting out which forms businesses and professionals must use when disclosing tax avoidance schemes under mandatory reporting rules. The guidance covers different scenarios and circumstances where disclosure obligations apply. Organisations involved in designing, implementing or promoting tax avoidance arrangements should refer to this guidance to ensure they use the correct reporting forms. Failure to disclose reportable schemes can result in penalties.
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HMRC has released draft interim guidance and legislation to help employers prepare for mandatory real-time reporting of benefits in kind and expenses through payroll software starting April 2027. The new requirement will shift how companies report BiKs and expenses, moving from historical reporting to a system integrated with payroll processing. This change affects all employers providing benefits in kind to employees and requires advance planning to ensure payroll systems can accommodate the reporting obligations within the specified timeframe.
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HMRC has published Notice IPT1 to provide comprehensive guidance on Insurance Premium Tax, covering the scope of the tax, its applicability to different parties, and payment procedures. The notice serves as a reference document for businesses and professionals involved in insurance transactions who need to understand their IPT obligations. This guidance clarifies which insurance products are subject to the tax and outlines the administrative requirements for compliant reporting and payment.
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HMRC Notice 700/8 sets out mandatory disclosure requirements for arrangements and transactions designed to provide a VAT advantage. Businesses and advisers involved in VAT avoidance schemes must notify HMRC of these arrangements, with specific reporting deadlines and criteria determining when disclosure is required. The notice establishes the framework for identifying reportable transactions and the consequences of failure to comply with disclosure obligations.
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HMRC has published guidance detailing the extra benefits in kind fields that employers should expect to report on Full Payment Submission returns. The information specifies which BiK data points are likely to be required for FPS reporting purposes. This guidance helps employers and payroll practitioners prepare their systems and processes to capture and submit the necessary benefits in kind information alongside their regular payroll submissions.
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HMRC has introduced form AAG3 to enable users of tax avoidance schemes to notify the tax authority directly when either no promoter exists or the promoting lawyer is unable to submit a full notification. The form addresses situations where the standard promoter notification procedure cannot be completed, allowing scheme participants to meet their disclosure obligations independently. This provides an alternative notification route for users involved in schemes that fall outside conventional promoter-led reporting requirements.
Source: HMRC (GOV.UK) – Read the original