In HMRC v Hyrax Resourcing Limited & Bosley Park Limited & Peak Performance Head Office Services Limited [2019] TC07025 the First Tier Tribunal (FTT) found that a contractor loan scheme should have been notified under the Disclosure of Tax Avoidance Schemes (DOTAS) regulations.

The DOTAS regime was introduced in 2004.

'Hyrax' was a contractor loan scheme  using an EFRBS and was marketed by the respondents from 2014 onwards.

The FTT found that Hyrax was a notifiable arrangement under the DOTAS rules:

The judge noted that the respondents elected not to serve any evidence nor call any witnesses at the hearing which she felt inferred that the evidence they could have given would not have assisted their case. She also noted that, whilst the potential penalties were “enormous”, the respondents had not yet been penalised, and “may never be penalised”.


What happens next remains to be seen, the decision is not appealable but presumably Hyrax Resourcing will now be required to provide HMRC with a list of everyone who has implemented the scheme just in time for the Disguised Remuneration loan charge on 5 April 2019. 

Links to our guides:

DOTAS: Disclosure of Tax Avoidance Schemes
Rules for declaring use of tax schemes

Disguised Remuneration
A guide to everything you need to know about disguised remuneration schemes, the loan charge, and how to reach a settlement with HMRC.

Comment from 2014:
K2 Jimmy Carr: has tax avoidance gone too far?

External links:

HMRC v Hyrax Resourcing Limited & Others [2019] TC07025 

HMRC spotlights on tax avoidance schemes