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Jimmy Carr used Jersey tax scheme

25.06.12

It was widely reported in the news last week that comedian Jimmy Carr allegedly used a complex scheme to minimise his income tax. Carr himself was keen to disapprove of such schemes a year ago, when he appeared on Channel 4’s ‘10 o’clock Live’ condemning Barclays’ 1% tax arrangement whilst wearing a comical blonde wig.

More recently, Carr's tax arrangements have caught the attentions of Prime Minister David Cameron, HMRC and taxpayers alike.

It is believed that the highly-criticised scheme operates when the investor ‘resigns’ from their UK company and is then hired by another company based in Jersey. The investor (Carr), who transfers his money into their trust, is then rehired back into the UK. He is then paid a considerably low (taxable) salary for his work. The rest of his money is then ‘loaned’ back to him, supposedly exempt from income tax due to it being technically returnable. The company take a percentage service charge.

Carr, who is said to have sheltered around £3.3million per year from the taxman, has since pulled out of the scheme, claiming he had “made a terrible error of judgement”. HMRC are now likely to investigate further, which may result in Carr paying back any taxes that should have been paid.

Amidst all this talk surrounding off-shore services, Consort reassures you that our services are completely transparent and we offer our contractors a simple service in which they can retain their self-employed status whilst receiving the benefits of subcontracting. Our processes and procedures have been developed following consultation with HMRC.

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