The HMRC consultation paper, Strengthening Sanctions for Tax Avoidance, sets out proposals to tackle the serial use of tax avoidance schemes. This follows on from the introduction of accelerated payment notices, which have already been issued to taxpayers who, in the view of the tax authorities, have outstanding tax bills.

Tax avoiders already face penalties a number of escalating penalties; this consultation proposes additional financial penalties such as a surcharge and additional reporting requirements on users of multiple schemes that fail.

Serial avoiders use multiple tax avoidance schemes at the same time – whether using the same avoidance scheme in more than one year, or using different avoidance schemes – to avoid significant amounts of tax.

The consultation also considers whether, and how, to introduce additional penalties for cases where the General Anti-Abuse Rule (GAAR) applies. The GAAR is meant to counter the most abusive avoidance.

The financial secretary to the Treasury, David Gauke, said: ‘Today, we are proposing further action, such as penalties, to tackle the small hard-core group of people who repeatedly use avoidance schemes.

‘Our message is clear: it is time to get out of avoidance and start paying your fair share.’

 The consultation follows the announcement by the Chancellor last December that the government would consult on potential sanctions for repeat users of known avoidance schemes.

As part of the ongoing clampdown on tax avoidance, HMRC has set up the new Serial Avoiders Unit (SAU) which will identify and tackle users of multiple avoidance schemes.

The specialist unit will offer a new hotline service to help people who have used multiple schemes and want to get their tax affairs in order. This will provide a single point of contact within HMRC to facilitate resolution of their tax affairs.

In addition, HMRC has also today published the top ten things that users of multiple schemes need to be aware of.

Jennie Granger, director general, enforcement and compliance, HMRC, said: ‘HMRC is determined to clamp down on the small number of people who engage in tax avoidance.

‘As part of this, HMRC is increasing its focus on users of multiple schemes and increasing the level of resource and intensity devoted to tackling these avoiders.’

The consultation paper is available at https://www.gov.uk/government/consultations/strengthening-sanctions-for-tax-avoidance