HMRC Warns Businesses Over Fraudulent Tax Credit Schemes

The UK tax authority warned businesses against signing up for tax credit schemes being marketed to reduce employment tax liabilities.

Businesses are being targeted by organizations claiming they can lower employment costs by offsetting taxes using “tax credits” from third-party companies they acquire, His Majesty’s Revenue and Customs said in a policy paper Friday.

Such organizations may present themselves as payroll providers, intermediaries, umbrella companies or back-office service providers, according to HMRC.

“These organisations falsely claim that they can acquire businesses that have tax credits on file with HMRC,” which they claim can be used to offset employment ...