Novus Consultant Limited under scrutiny from UK tax authority
A business with its headquarters based in the Isle of Man has been named by UK tax authority Her Majesty's Revenue and Customs as a promoter of a tax avoidance scheme.
Novus Consultants Ltd, based in Queen Victoria House on Victoria Street in Douglas, was one of three companies outed by the HMRC last week.
In a rough description of the scheme promoted, the authority says it involved users signing an employment contract and a so-called 'Commercial Loan Agreement' with the company.
The user will then be paid a salary based on the minimum wage that is taxed, and a second payment that is not taxed under that agreement.
The company, in this case Novus Consultants Limited, then retains around 20 per cent of the gross contract earnings.
The HMRC said it wanted to publish the name and address of company, to warn people against participating in the scheme - and exiting it if they already were.