Recommendation 22

HMRC told us the nature of tax avoidance has changed. It said the bulk of avoidance schemes now relate to employment taxes and are not targeted at affluent people but middle-income earners, some of whom knowingly enter avoidance schemes and others who unwittingly get involved.39 In 2019, HMRC introduced the loan charge to recoup tax from people who had used ‘disguised remuneration’ schemes to avoid income tax.40