Disclaimer: This blog uses information that may be out of date – check our latest blogs for current information.
What is tax avoidance?
Some people try to bend the rules of the tax system to pay less tax than they should.
How to spot tax avoidance?
Understanding how you’re being paid is the best way to make sure you don’t get caught up in tax avoidance. This applies to people in PAYE as well as Self Assessment.
Checking your payslips and contractual arrangements will help you confirm you are paying the right amount of Income Tax and National Insurance contributions. Doing this will mean you avoid getting an unexpected tax bill later.
Things to look out for include:
- receiving more money in your bank account than what is shown on your payslip
- receiving untaxed payments like loans or capital advances
Find out more on the HMRC news website: https://taxavoidanceexplained.campaign.gov.uk/?utm_source=govuk_home&utm_medium=refferal&utm_campaign=upstream_