A7.308 Promoters of tax avoidance schemes—monitored promoters
For the latest New Development, see ND.1740.
Promoters of tax avoidance schemes who satisfy one or more 'threshold conditions' relating to previous behaviour or who regularly promote avoidance schemes which are defeated are subject to a compliance regime. For an overview of the regime, see A7.301. This article considers when HMRC effect of a monitoring notice on a promoter. For commentary on monitoring notices, see A7.307.
The promoters of tax avoidance schemes rules are also referred to as 'POTAS'.
Promoters subject to a monitoring notice are subject to a strict monitoring and compliance regime. Names of promoters subject to a monitoring notice may be published by HMRC1, including details of how the conduct notice was breached, and the promoter is required to notify their monitored status to clients2.
Information powers (see A7.310) and penalties (see A7.312) apply to both monitored promoters, and intermediaries and clients of monitored promoters3. A monitored promoter must inform an authorised officer of their current address within 30 days of the end of each calendar quarter for the period that the monitoring notice has effect4.
Clients of monitored promoters are also subject to certain obligations (with a penalty for non-compliance) and extended time limits for assessments, and being the subject of greater HMRC scrutiny may well influence clients to discontinue their professional relationship with a monitored promoter5.
Becoming a monitored promoter can result in any of the following which could significantly affect a promoter's effectiveness as a tax adviser and indeed their