Commentary

A7.308 Promoters of tax avoidance schemes—monitored promoters

Administration and compliance

A7.308 Promoters of tax avoidance schemes—monitored promoters

A7.308 Promoters of tax avoidance schemes—monitored promoters

HMRC has the power to stop persons promoting certain arrangements that may give rise to a tax advantage. HMRC can also require such persons to maintain certain conduct and monitor them if they fail to do so. This is known as the promoters of tax avoidance scheme (POTAS) regime. For an overview of the regime, see A7.301. For the key definitions, see A7.301A.

This article considers when HMRC effect of a monitoring notice on a promoter. For commentary on monitoring notices, see A7.307.

Monitored promoters

A person subject to a monitoring notice (see A7.307) is called a 'monitored promoter'1.

Monitored promoters are subject to a strict monitoring and compliance regime. Names of promoters subject to a monitoring notice may be published by HMRC, including details of how the conduct notice was breached, and the promoter is required to notify their monitored status to clients2.

A monitored promoter must inform HMRC of their current address within 30 days of the end of each calendar quarter for the period that the monitoring notice has effect3.

Clients of monitored promoters are also subject to certain obligations 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 promoter4.

HMRC has wide information powers that it can use to check whether the requirements of the monitoring notice are being met. See A7.309.

If any of the persons discussed below fail to comply with the requirements, penalties can be

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