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Offshore Payroll Vehicles to be targeted in the Budget

Danny Alexander confirmed that the Coalition Government has “shadowy” offshore middlemen, which cost the UK Treasury around £100 million a year, firmly in their sights.

Danny Alexander’s recent keynote speech to the Scottish Liberal Democrats conference in Dundee, stated that the Coalition is seeking more closures of aggressive tax avoidance and that the Budget, being delivered on Wednesday this week, will include new powers to tackle UK businesses who are avoiding paying UK tax by routing their payrolls in offshore tax havens.

Mr Alexander said: “Under Labour’s tax rule, over 100,000 workers are being employed through these offshore payroll agents. By running their payroll through an offshore location like Jersey, these shadowy intermediaries can avoid paying employment tax, at a cost to the Exchequer of around £100 million a year – and rising.”

He went on that “British firms, employing workers in Britain, must pay British taxes. There is no hiding place, everyone must pay their fair share.”

There have been a range of measures already introduced with the aim of clamping down on tax avoidance, including doubling the size of the team focusing on money hidden in Lichtenstein and a Tax Co-operation Agreement with the Swiss Government to find £5 billion found in Swiss bank accounts.

Newshams Tax Specialist are tax experts in this area of law and can help you ensure you remain compliant and can successfully negotiate any new measures.

If you would like to talk to one of our expert London Tax Lawyers, please contact us on 020 7470 8820 or e-mail us at enquiries@newshams.com or visit our website http://www.newshams.com