AROUND 3,000 people and companies in Yorkshire could face a crippling wave of tax demands under new legislation and powers covering tax avoidance schemes, experts have warned.
Tax specialists at the regional office of accountants Grant Thornton say more than £600 million could be recouped by HM Revenue and Customs as a result of tax avoidance schemes now deemed invalid.
Nationally, £5.1billion of tax is owed by individuals, firms and trusts which participated in schemes outlawed by recent legislation.
Karen Riley, who leads the tax investigations team at Grant Thornton in Leeds, said: “HMRC has really taken its gloves off when it comes to tax disputes. We expect to see demands for tens of thousands in unpaid taxes hitting doorsteps daily.”
The new rules also require taxpayers to pay up front rather than being allowed to await judgement on the validity, or otherwise, of tax avoidance schemes.
“The best advice if you are appealing the validity of a scheme, is to assume you could face a demand at any time,” Karen added.
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