Commentary

PN/14/01 Crackdown on avoidance scheme

Part V16 Forms and other HMRC material

PN/14/01 Crackdown on avoidance scheme

PN/14/01 Crackdown on avoidance scheme

Press Notice 14/01. 12 March 2001

A tax avoidance scheme being marketed to major high street retailers by large accountancy firms is to be tackled in the courts by Customs and Excise. The scheme notionally imposes a VAT-exempt “card handling fee” for credit and debit card transactions.

Paymaster General, Dawn Primarolo said—

“The artificiality of the scheme is demonstrated by the fact that customers who pay cash are not given a discount.”

If left unchallenged, this sort of scheme allows large companies to undercut small business rivals by hundreds of millions of pounds, and means less money from VAT

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