Firm headed by Manx businessman facing £43m tax bill

A Manx businessman is facing a bill of almost £43 million from the UK’s taxman.

A tribunal has ruled that payroll firm Island Contract Management (UK) Ltd headed by chartered accountant David Boothman helped builders dodge paying tax for eight years.

The company dealt with thousands of self-employed workers in the UK construction industry between 2002 and 2010, using a scheme found by the tribunal to have cost HMRC in the UK tens of millions of pounds.

Mr Boothman a director of Island Contract Management registered in Millennium House, Victoria Road, Douglas, in turn a corporate director of ICM UK, had appealed decisions made by the UK tax man in 2008 and 20010.

Judge Timothy Herrington of the First Tier Tax Tribunal heard the appeal in London over three days in October last year.

He described Mr Boothman’s evidence as unsatisfactory, vague, contradictory and inconsistent – saying he gave evasive or over complicated answers to straightforward questions.

Mr Boothman consistently claimed that because his company was based in the Isle of Man, it was outside HMRC’s jurisdiction.

The judge disagreed and upheld the notices of determination from the taxman which demanded a total of £42.75 million.