Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

National Insurance Manual

From
HM Revenue & Customs
Updated
, see all updates

NICs avoidance: sham: considering sham

Definition of sham

When investigating NICs avoidance arrangements, you may conclude that something is not as it is alleged to be. If this is the case, you may want to consider whether part or all of the arrangements are a sham. Sham describes the situation where legal appearance and reality do not coincide.

For relevant case law about sham see NIM59050.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Outcome of a successful sham argument

If arrangements are a sham, then tax and NICs provisions will be applied to real and intended transaction(s).