NEWS .

HMRC WARNS!

Her Majesty Revenue & Customs published on the website the information on the range of operations and schemes which would be considered as tax avoidance.
The article includes the list of indicators, which can help you to discern illegality of the proposed scheme, and also the examples of the most widely used schemes.
Here come some of the indicators:

- It sounds too good to be true
- It seems very complex given what you want to do
- There are guaranteed returns with apparently no risk
- Off-shore companies or trusts are involved for no sound commercial reason
- The scheme is said to be approved by HMRC (it does not follow that this is true)

Among the described scheme you may find such as using trusts and similar entities to reward employees, VAT artificial leasing etc.

Source: http://www.hmrc.gov.uk/avoidance/spotlights.htm