UK – Singer Cheryl Tweedy faces ‘huge bill’ for ‘tax avoidance scheme’ after losing legal battle with HMRC (Metro)
February 23, 2022
HMRC has accused singer Cheryl Tweedy of using a tax avoidance scheme, reports Subway. The singer could pay a “heavy bill”. The singer’s company, CC Entertainments, reportedly paid capital gains tax instead of income and national insurance tax, which have higher rates. Tweedy was reported to have recently lost an ongoing legal battle, with a judge finding his personal business guilty of “direct profit extraction” by using an artificial employee bonus system. Judge Jennifer Dean said: “CC Entertainments appeal is a simple ‘profit extraction’ case where the sole 100% shareholder [Tweedy] signed an employment contract and was assigned a growth title ownership plan that qualified as an employment-related title.
A spokesman for HM Revenue & Customs told Metro: “We welcome this decision which confirms that these were tax avoidance schemes. We are committed to ensuring that everyone pays the right tax at the right time to help fund our vital public services. HMRC can now ask him to refund the tax, including compound interest, but not fines or penalties. The amount of the bill is not known, but CC Entertainments recorded profits of £120,000 in 2020. Last year the UK government published proposals to tackle tax avoidance and unregistered umbrella companies. compliant.