Tax experts urge builders – don’t pay for Jimmy’s Carr
Comedian Jimmy Carr’s recent brush with HMRC may have given him a healthy return in new material, but UK construction workers are failing to see the funny side of his involvement with the K2 tax shelter scheme.
The reason for their sense of humour failure is that while the rich and famous hit the headlines by paying as little tax as possible, many construction sector workers are paying over the odds to the taxman and seem unable to do anything about it according to local tax specialists.
However the team of tax specialists from Refunds Direct is now calling on those within the construction sector to take a closer look at their own personal tax situation as it may result in them having the last laugh with HMRC.
Carrie Large, managing director at Refunds Direct said: “Many construction workers are paying well over the odds to the taxman but haven’t had the time or inclination to do anything about it.”
Having successfully claimed over £5 million for its clients the company’s research revealed that the average construction sector client was owed around £1,300 each in overpaid tax and is now urging them to do something about it.
Carrie believes the outcry following Jimmy Carr’s decision to end his involvement with such a scheme had highlighted the growing divide between people seeking to exploit loopholes in the tax system, those who pay their fair share and those who end up paying too much.
She added: “Although Jimmy Carr has apologised for his involvement in the completely legal K2 tax shelter scheme, we hope the publicity will prompt people to think twice about what they are paying.
“And in our experience construction workers are generally paying over the odds rather than under.”
The K2 tax scheme previously used by Jimmy Carr is a way of lowering the amount people pay – in Jimmy Carr’s case to just 1 per cent. Although the figures were fully disclosed to HMRC and the scheme is completely legal the comedian admitted he had “made a terrible error of judgement” and has stopped using the scheme.
Carrie added: “Nobody enjoys seeing hard-earned cash going to the taxman but these schemes have clearly caused a great deal of resentment among everyday working people who are paying their fair share or too much.”
She said unlike comedians and celebrities, typical construction workers were notoriously reluctant to challenge their tax assessments.
She said: “Many of our customers tell us they were reluctant to lift the lid on their own tax situation for fear they could end up with a bigger bill from HMRC.
“But our free review shows that around four out of ten construction workers are owed money, with average refunds typically £1,300. We can also offer comprehensive advice on future tax evaluations if that does not turn out to be the case.”
The registered HM Revenue & Customs tax agents hold the necessary claims management licence for pursuing financial refunds and have refunded in excess of £5 million pounds since 2004. Covering the last fours years its free tax review examines PAYE income, Construction Industry Scheme (CIS), expenses and Jobseeker’s Allowance (JSA).
Carrie concluded: “It seems our building workers have a very healthy respect for our tax system and we have the expertise to get the most back for their hard work.”
For further information please call 0800 107 7188, text REFUND to 60777 or visit www.refundsdirect.co.uk