DOTAS ― what end users must do

Produced by Tolley

The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • DOTAS ― what end users must do
  • End users of a scheme ― obligation to disclosure the scheme to HMRC
  • No promoter
  • Non-resident promoter
  • Promoter is a lawyer
  • End users in receipt of scheme reference numbers
  • Passing on SRN to other parties involved in scheme
  • Reporting SRN to HMRC
  • Form AAG4
  • Providing information to promoter
  • More...

DOTAS ― what end users must do

Under the disclosure of tax avoidance scheme (DOTAS) regime, persons have to self assess tax planning proposals or arrangements, and if these meet one or more ‘hallmarks’ they must be disclosed to HMRC.

The DOTAS regime is deliberately cast quite widely so that it is capable of applying both to something that everyone would recognise as a tax avoidance scheme and to any set of arrangements that may be expected to deliver a tax or national insurance advantage as a main benefit.

The DOTAS rules do not include a definition of an avoidance scheme, instead they focus on whether a scheme is ‘notifiable’. A scheme can be something that it is described as such, but the rules apply equally to any arrangements. This guidance note uses the term ‘scheme’ to cover both. For help in deciding whether a scheme is notifiable in relation to the various taxes, see the DOTAS ― what is a notifiable scheme? guidance note.

This guidance note considers the action which end users of the scheme must take. Although it is generally the responsibility of promoters of avoidance schemes to make the disclosure, end users of notifiable schemes also have responsibilities under the DOTAS regime.

For an summary of the DOTAS regime, including the taxes to which it applies and who must make the disclosure, see the Disclosure of tax avoidance schemes (DOTAS) ― overview guidance note.

End users of a scheme ― obligation to disclosure the scheme to HMRC

There are three situations where the end user may be required to make the disclosure:

  1. the scheme was developed in-house

  2. the overseas promoter fails to make the disclosure, or

  3. the promoter is a lawyer

These situations are discussed below.

If the end user discloses a notifiable scheme to HMRC, they must supply HMRC with the same level of detail as a promoter would, ie enough detail to enable HMRC to understand the scheme and the way in which it aims to deliver

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