Settlements legislation aims to prevent people passing their own income off as someone else’s in order to pay less tax on it. The law has been in force since the 1930s, but in recent years HMRC has used it specifically to crack down on ‘husband-and-wife’ businesses. At Sherwin Currid, we can advise contractors and freelancers on possible Settlements Legislation implications where the business

  • has a high income but relatively low expenses and capital base
  • one spouse is much more actively involved in the business than the other
  • the company income is largely generated by main shareholder