Tax experts criticized HMRC's latest public awareness campaign for “not to be caught” as they blurred the lines between legal tax schemes and illegal activities, a move that could confuse taxpayers and undermine the clarity of the UK tax regime.
According to Blick Rothenberg, a leading audit, tax and consulting firm, the campaign repeatedly mentions “tax avoidance plans” when describing acts that are more accurately marked as tax evasion or fraud.
“The HMRC warns taxpayers about scams is good. But by calling these arrangements “tax avoidance programs,” they are abusing the term and potentially misleading the public. They are describing clear tax evasion cases or fraud cases, not avoiding them.”
Salter stressed that tax avoidance is legal, often conventional, involving tools such as pension donations, ISAs or wage sacrifice programs. By contrast, tax evasion involves intentional concealing income, assets, or false reports to avoid paying taxes, which is a criminal offence.
He added that confusing these terms could make taxpayers unsure which legal tax plans could be used and inadvertently makes it easier for fraudsters to exploit the confusion.
“Tax avoidance is legal and legal. This is what many people do when they are pensions or adjusting the contribution of their salary structure. But tax evasion is a crime. Use the right terminology matters, whether it is to protect taxpayers for clarity.”
The event’s messaging aims to educate people about the risks of tax scams, which could lead some to miss out on tax avoidance opportunities due to concerns over legal boundaries.
“If a legitimate choice cannot be made due to this confusion, they may end up paying unnecessarily. Worse, and worse, scammers may use ambiguity to make illegal plans look more credible,” Salter warned.
He urged the HMRC to review the language used in its educational materials, stressing that the clear distinction between tax avoidance, tax evasion and tax fraud is crucial – not only helping the public drive the system, but also maintaining trust and preventing abuse.
“Making the distinction clearer will not only help protect taxpayers, but also reduce the number of inquiries and investigations that the HMRC has to deal with,” Salter concluded.
HMRC has not yet publicly responded to criticism.
