The problem taxpayers who enter into schemes such as DJ Chris Moyles will have in persuading HMRC that they are naïve and had no idea that the scheme was illegal is if HMRC are able to produce documents signed by the taxpayer alleging to be, say in the Chris Moyles case, a car dealer when in fact he wasn’t.
It’s not very hard to describe what occupation you actually do and a DJ and a car dealer are two separate entities completely.
If of course it has been done by a third party without your knowledge then that is something you could possibly rely on but where you have been involved yourself – and I’m not saying that Moyles falls into that category – in my view and in my experience there is always some document that has to be signed by the taxpayer agreeing to what the scheme is or signing it off for the accountant to submit it to HMRC.
I think that is the problem, if HMRC decide to go criminal in these cases then the taxpayer could have a very awkward time in trying to explain to HMRC while his everyday job is a DJ he has declared and signed off saying he is also a car dealer.
Awkward, embarrassing perhaps.
Something to look at perhaps.