{"id":1124,"date":"2022-05-03T00:00:00","date_gmt":"2022-05-03T00:00:00","guid":{"rendered":"https:\/\/www.simplybusiness.co.uk\/knowledge\/articles\/difference-between-tax-avoidance-and-tax-evasion\/"},"modified":"2025-05-22T13:16:48","modified_gmt":"2025-05-22T13:16:48","slug":"difference-between-tax-avoidance-and-tax-evasion","status":"publish","type":"knowledge","link":"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/","title":{"rendered":"Tax avoidance vs tax evasion \u2013 what do small businesses need to know?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Small businesses and the self-employed usually have to file a tax return each year, which can be complex and time-consuming.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As a result, there are a range of schemes that claim to simplify and lower companies\u2019 tax bills either through tax avoidance or tax evasion. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By signing up to one of these schemes, you could risk breaking the law or ending up paying less tax than you owe. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Read on to find out the difference between tax avoidance and tax evasion, the type of schemes you need to look out for, and what to do if you work through an umbrella company.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"wp-block-list-item\"><a href=\"\/knowledge\/business-tax\/self-employed-tax-changes\/\" data-type=\"knowledge\" data-id=\"1514\" ><strong>How to do a Self Assessment tax return<\/strong><\/a><\/li>\n\n\n\n<li class=\"wp-block-list-item\"><a href=\"\/knowledge\/business-tax\/self-employed-tax-changes\/\" data-type=\"knowledge\" data-id=\"1514\" ><strong>Self-employed tax changes<\/strong><\/a><\/li>\n\n\n\n<li class=\"wp-block-list-item\"><a href=\"\/knowledge\/business-tax\/self-employed-tax-changes\/\" data-type=\"knowledge\" data-id=\"1514\" ><strong>Self Assessment and tax resource<\/strong><\/a><\/li>\n\n\n\n<li class=\"wp-block-list-item\"><a href=\"\/business-insurance\/faq\/how-much-does-business-insurance-cost\/\"><strong>How much does business insurance cost?<\/strong><\/a><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-tax-avoidance-vs-tax-evasion-what-s-the-difference\">Tax avoidance vs tax evasion \u2013 what\u2019s the difference?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Tax evasion and avoidance schemes are designed to reduce people\u2019s tax bills and are both viewed negatively by HMRC. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The difference between tax avoidance and tax evasion is that tax avoidance schemes operate within the law, but are described by HMRC as not being \u2018in the spirit of the law\u2019.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Genuine mistakes on a tax return such as misculautions and missed deadlines can also be considered tax avoidance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On the other hand, tax evasion involves deliberately withholding or providing inaccurate information to pay less tax. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Examples of this include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"wp-block-list-item\"><strong>providing false documents<\/strong> \u2013 creating fake invoices or contracts to reduce payments<\/li>\n\n\n\n<li class=\"wp-block-list-item\"><strong>making false expense claims<\/strong> \u2013 claiming tax relief for costs you haven\u2019t incurred<\/li>\n\n\n\n<li class=\"wp-block-list-item\"><strong>failing to declare goods<\/strong> \u2013 or underestimating their value to pay less tax<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-is-tax-evasion-illegal\">Is tax evasion illegal?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Yes, tax evasion is treated as tax fraud. If you\u2019re found guilty of tax evasion after an HMRC investigation, you could receive a big fine or a prison sentence.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Read our guide on <a href=\"\/knowledge\/business-tax\/hmrc-tax-investigation\/\" data-type=\"knowledge\" data-id=\"1402\" >HMRC tax investigations<\/a> to find out more about what happens during an investigation, what HMRC checks for, and the benefits of <a href=\"\/business-insurance\/business-legal-protection-insurance\/\">business legal protection insurance<\/a>. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-are-the-penalties-for-tax-evasion-in-the-uk\">What are the penalties for tax evasion in the UK?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Anyone found guilty of income tax or VAT evasion could receive an unlimited fine or a maximum of seven years in prison. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you\u2019re convicted of providing false documentation to HMRC, you could receive a six-month prison sentence or a maximum fine of \u00a320,000.<\/p>\n\n<div id=\"nba-body-001\">\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">For the most serious cases of tax evasion, known as \u201ccheating the public revenue\u201d, offenders could be sentenced to life in prison and\/or an unlimited fine.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-tax-evasion-and-avoidance-schemes-what-are-the-key-signs\">Tax evasion and avoidance schemes \u2013 what are the key signs?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Businesses should think very carefully and speak to a professional accountant or tax expert before joining any kind of tax scheme as there\u2019s a chance it could be illegal. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Tax avoidance schemes will often claim to be tax efficient, legitimate, or even endorsed by HMRC. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here\u2019s what you need to watch out for:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"wp-block-list-item\"><strong>extra payments<\/strong> \u2013 if you\u2019re paid money outside of your salary through loans or grants, this could mean that income isn\u2019t being taxed<\/li>\n\n\n\n<li class=\"wp-block-list-item\"><strong>unnecessary transactions<\/strong> \u2013 if payments are being made that don\u2019t seem to have any purpose and the money appears to be going round in circles<\/li>\n\n\n\n<li class=\"wp-block-list-item\"><strong>bold claims and benefits<\/strong> \u2013 if you\u2019re being told that your take home pay will increase significantly <\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If you think you might be part of a tax avoidance scheme, you should contact HMRC immediately. You\u2019ll have to settle what you owe so the sooner you report it, the less interest you\u2019ll pay.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-tax-avoidance-schemes-and-umbrella-companies\">Tax avoidance schemes and umbrella companies<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The number of contractors working through <a href=\"\/knowledge\/business-structure\/what-is-an-umbrella-company\/\" data-type=\"knowledge\" data-id=\"951\" >umbrella companies<\/a> has increased significantly since April 2021 when <a href=\"\/resources\/ir35\/\">IR35 rules<\/a> were introduced. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Joining an umbrella company means contractors don\u2019t have to <a href=\"\/knowledge\/business-structure\/setting-up-a-limited-company\/\" data-type=\"knowledge\" data-id=\"1270\" >set up their own limited company<\/a> and don\u2019t have to manage things like payroll.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, because of the way they\u2019re set up, umbrella companies can be used for tax avoidance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">HMRC advises all contractors, freelancers, and agency staff who work through umbrella companies to check their payslips to make sure they\u2019re not part of a tax avoidance scheme.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One of the main things to look out for is if your payslip shows a wage lower than the amount of money that gets paid into your bank account. For example your payslip says your net pay is \u00a31,800, but you actually receive \u00a32,200 from the umbrella company. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Putting a lower wage on your payslip allows the umbrella company to pay less tax. If you\u2019re receiving extra income from an umbrella company that isn\u2019t shown on your payslip, you could be part of a tax avoidance scheme. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Extra payments are often described as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"wp-block-list-item\">bonuses<\/li>\n\n\n\n<li class=\"wp-block-list-item\">profit shares<\/li>\n\n\n\n<li class=\"wp-block-list-item\">loans<\/li>\n\n\n\n<li class=\"wp-block-list-item\">credit facilities<\/li>\n\n\n\n<li class=\"wp-block-list-item\">capital payments<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">You can use HMRC\u2019s <a href=\"http:\/\/payecalculator.hmrc.gov.uk\/PAYE0.aspx\" rel=\"noopener noreferrer\" target=\"_blank\">tax calculator<\/a> and <a href=\"http:\/\/nicecalculator.hmrc.gov.uk\/Class1NICs1.aspx\" rel=\"noopener noreferrer\" target=\"_blank\">National Insurance calculator<\/a> to work out how much tax you should be paying and whether it matches up to your payslips and bank account.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large size-full\"><img loading=\"lazy\" decoding=\"async\" height=\"683\" width=\"1024\" src=\"https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/business-meeting-tax.jpg?w=1024\" alt=\"Business people discussing tax\" class=\"wp-image-2608\" srcset=\"https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/business-meeting-tax.jpg 5964w, https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/business-meeting-tax.jpg?resize=800,534 800w, https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/business-meeting-tax.jpg?resize=768,512 768w, https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/business-meeting-tax.jpg?resize=1024,683 1024w, https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/business-meeting-tax.jpg?resize=1536,1025 1536w, https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/business-meeting-tax.jpg?resize=2048,1366 2048w, https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/business-meeting-tax.jpg?resize=150,100 150w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><em>goodluz\/stock.adobe.com<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-hmrc-tax-evasion-and-tax-avoidance-what-do-you-need-to-know\">HMRC, tax evasion, and tax avoidance \u2013 what do you need to know?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">HMRC takes tax avoidance and evasion very seriously and is always looking out for new schemes. Below is an overview of its tax avoidance campaign and the reporting process.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-hmrc-campaign-names-tax-avoidance-schemes\">HMRC campaign names tax avoidance schemes<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">In April 2022, HMRC named tax avoidance scheme promoters for the first time as part of its <a href=\"https:\/\/taxavoidanceexplained.campaign.gov.uk\/\" rel=\"noopener noreferrer\" target=\"_blank\">Tax Avoidance \u2013 Don\u2019t Get Caught Out<\/a> campaign.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The named schemes encourage people to agree to an employment contract and work as a contractor. They pay contractors the <a href=\"\/knowledge\/staff\/what-is-the-national-minimum-wage\/\" data-type=\"knowledge\" data-id=\"1588\" >national minimum wage<\/a>, with the rest of their monthly salary paid through a loan to try to avoid paying <a href=\"\/knowledge\/self-assessment\/how-to-pay-national-insurance-when-self-employed\/\" data-type=\"knowledge\" data-id=\"1440\" >National Insurance<\/a> and <a href=\"\/knowledge\/business-tax\/income-tax-rates\/\" data-type=\"knowledge\" data-id=\"1464\" >income tax<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">HMRC says it will be updating the list regularly, but that it doesn\u2019t cover all tax avoidance schemes so self-employed people should remain vigilant.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Don\u2019t Get Caught Out campaign has a range of case studies, as well as an <a href=\"https:\/\/www.gov.uk\/guidance\/check-if-you-are-at-risk-of-tax-avoidance\" rel=\"noopener noreferrer\" target=\"_blank\">interactive risk checker<\/a> and <a href=\"https:\/\/www.gov.uk\/guidance\/check-your-payslip-if-you-work-through-an-umbrella-company\" rel=\"noopener noreferrer\" target=\"_blank\">payslip guidance<\/a> to help small businesses and the self-employed identify tax avoidance schemes.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-to-report-tax-evasion-schemes\">How to report tax evasion schemes<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">There are various ways to report tax evasion and avoidance issues to HMRC. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you suspect a business is committing tax fraud, such as not paying enough tax or registering a business without telling HMRC, you can <a href=\"https:\/\/www.gov.uk\/report-tax-fraud\" rel=\"noopener noreferrer\" target=\"_blank\">file a report<\/a> through the government website. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For suspicious emails that claim to be from HMRC, you can <a href=\"https:\/\/www.tax.service.gov.uk\/submissions\/composite-auth\/auth-selection-form\/report-a-suspicious-hmrc-phone-call\" rel=\"noopener noreferrer\" target=\"_blank\">complete an online form<\/a> or forward them to phishing@hmrc.gov.uk<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you think you\u2019ve identified a tax evasion or avoidance scheme, you can <a href=\"https:\/\/www.tax.service.gov.uk\/report-tax-fraud\/activity-type\" rel=\"noopener noreferrer\" target=\"_blank\">report it to HMRC<\/a> through the government website.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-do-you-get-a-reward-for-reporting-tax-evasion-in-the-uk\">Do you get a reward for reporting tax evasion in the UK?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">There are financial rewards available for reporting tax evasion, although HMRC says most people provide information without expecting payment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You\u2019ll only receive a reward if the information is \u201cexceptionally helpful\u201d to an investigation, with most payments less than \u00a35,000.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Do you have any tips for identifying tax evasion schemes? Let us know in the comments below.<\/strong><\/p>\n\n\n\n<div class=\"wp-block-group has-azure-200-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-94e519ba wp-block-group-is-layout-constrained\" style=\"padding-top:var(--wp--preset--spacing--80);padding-right:var(--wp--preset--spacing--40);padding-bottom:var(--wp--preset--spacing--80);padding-left:var(--wp--preset--spacing--40)\">\n<h3 class=\"wp-block-heading has-text-align-center\" id=\"h-ready-to-set-up-your-cover\">Ready to set up your cover?<\/h3>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\">As one of the UK&#8217;s biggest <a href=\"\/business-insurance\/\" data-type=\"page\" data-id=\"5152\" >business insurance<\/a> providers, we specialise in <a href=\"\/business-insurance\/public-liability-insurance\/\">public liability insurance<\/a> and protect more trades than anybody else. Why not take a look now and build a quick, tailored quote?<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-a89b3969 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/quote.simplybusiness.co.uk\/business\">Start your quote<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><em>djile\/stock.adobe.com<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>djile\/stock.adobe.com<\/em><\/p>\n\n<div id=\"nba-body-end\">\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Don&#8217;t risk breaking the law or not paying the right amount of tax. Here&#8217;s our guide to the difference between tax avoidance and tax evasion schemes.<\/p>\n","protected":false},"author":3,"featured_media":2607,"comment_status":"open","ping_status":"closed","template":"","meta":{"sb_hreflang":"","sb_hreflang_url":"","disable_breadcrumbs":false,"sb_breadcrumbs":[],"sb_reviewed_by":"","sb_review_date":"","sb_enable_content_gating":true,"footnotes":""},"categories":[336,344,110],"hidden-category":[],"coauthors":[20],"class_list":["post-1124","knowledge","type-knowledge","status-publish","has-post-thumbnail","hentry","category-business-structure","category-business-tax","category-business-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What are tax avoidance and tax evasion schemes?<\/title>\n<meta name=\"description\" content=\"Don&#039;t risk breaking the law or not paying the right amount of tax. Here&#039;s our guide to the difference between tax avoidance and tax evasion schemes.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What\u2019s the difference between tax avoidance and tax evasion schemes?\" \/>\n<meta property=\"og:description\" content=\"What are the risks of tax evasion and joining a tax avoidance scheme? Read our guide.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/\" \/>\n<meta property=\"og:site_name\" content=\"Simply Business UK\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/simplybusiness\" \/>\n<meta property=\"article:modified_time\" content=\"2025-05-22T13:16:48+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/06\/difference-between-tax-avoidance-and-tax-evasion.jpg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Tax avoidance vs tax evasion \u2013 what do small businesses need to know?\" \/>\n<meta name=\"twitter:site\" content=\"@simplybusiness\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"6 minutes\" \/>\n\t<meta name=\"twitter:label2\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data2\" content=\"Conor Shilling\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/\"},\"author\":{\"@type\":\"Person\",\"name\":\"Conor Shilling\",\"description\":\"Conor Shilling is a professional writer with over 10 years\u2019 experience across the property, small business, and insurance sectors. A trained journalist, Conor\u2019s previous experience includes writing for several leading online property trade publications. Conor has worked at Simply Business as a Copywriter for three years, specialising in the buy-to-let market, landlords, and small business finance. <a href=\\\"https:\/\/www.linkedin.com\/in\/conor-shilling-b646632a\/\\\" target=\\\"_blank\\\" rel=\\\"noopener\\\">Connect with Conor on LinkedIn.<\/a>\"},\"headline\":\"Tax avoidance vs tax evasion \u2013 what do small businesses need to know?\",\"datePublished\":\"2022-05-03T00:00:00+00:00\",\"dateModified\":\"2025-05-22T13:16:48+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/\"},\"wordCount\":1204,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.simplybusiness.co.uk\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/difference-between-tax-avoidance-and-tax-evasion.jpg\",\"articleSection\":[\"Business structure\",\"Business tax\",\"Small business news\"],\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/\",\"url\":\"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/\",\"name\":\"What are tax avoidance and tax evasion schemes?\",\"isPartOf\":{\"@id\":\"https:\/\/www.simplybusiness.co.uk\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/difference-between-tax-avoidance-and-tax-evasion.jpg\",\"datePublished\":\"2022-05-03T00:00:00+00:00\",\"dateModified\":\"2025-05-22T13:16:48+00:00\",\"description\":\"Don't risk breaking the law or not paying the right amount of tax. Here's our guide to the difference between tax avoidance and tax evasion schemes.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/#primaryimage\",\"url\":\"https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/difference-between-tax-avoidance-and-tax-evasion.jpg\",\"contentUrl\":\"https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/difference-between-tax-avoidance-and-tax-evasion.jpg\",\"width\":6720,\"height\":4480,\"caption\":\"djile\/stock.adobe.com\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.simplybusiness.co.uk\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Knowledge\",\"item\":\"https:\/\/www.simplybusiness.co.uk\/knowledge\/%category%\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Tax avoidance vs tax evasion \u2013 what do small businesses need to know?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.simplybusiness.co.uk\/#website\",\"url\":\"https:\/\/www.simplybusiness.co.uk\/\",\"name\":\"Simply Business UK\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/www.simplybusiness.co.uk\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.simplybusiness.co.uk\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.simplybusiness.co.uk\/#\/schema\/person\/73ec77668d0ec554cd7df8942c664049\",\"name\":\"elliottstocks\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/www.simplybusiness.co.uk\/wp-content\/themes\/simply-business\/dist\/images\/default-author-avatar.webp9df6147f02078f0218660330fdfbacf3\",\"url\":\"https:\/\/www.simplybusiness.co.uk\/wp-content\/themes\/simply-business\/dist\/images\/default-author-avatar.webp\",\"contentUrl\":\"https:\/\/www.simplybusiness.co.uk\/wp-content\/themes\/simply-business\/dist\/images\/default-author-avatar.webp\",\"caption\":\"elliottstocks\"}},{\"@type\":\"PostalAddress\",\"@id\":\"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/#local-main-place-address\",\"streetAddress\":\"Hylo, 105 Bunhill Row\",\"addressLocality\":\"London\",\"postalCode\":\"EC1Y 8LZ\",\"addressCountry\":\"GB\"},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/#local-main-organization-logo\",\"url\":\"https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/logo.png\",\"contentUrl\":\"https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/logo.png\",\"width\":533,\"height\":187,\"caption\":\"Simply Business UK\"}]}<\/script>\n<meta name=\"geo.placename\" content=\"London\" \/>\n<meta name=\"geo.region\" content=\"United Kingdom (UK)\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"What are tax avoidance and tax evasion schemes?","description":"Don't risk breaking the law or not paying the right amount of tax. Here's our guide to the difference between tax avoidance and tax evasion schemes.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/","og_locale":"en_GB","og_type":"article","og_title":"What\u2019s the difference between tax avoidance and tax evasion schemes?","og_description":"What are the risks of tax evasion and joining a tax avoidance scheme? Read our guide.","og_url":"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/","og_site_name":"Simply Business UK","article_publisher":"https:\/\/www.facebook.com\/simplybusiness","article_modified_time":"2025-05-22T13:16:48+00:00","og_image":[{"url":"https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/06\/difference-between-tax-avoidance-and-tax-evasion.jpg","type":"","width":"","height":""}],"twitter_card":"summary_large_image","twitter_title":"Tax avoidance vs tax evasion \u2013 what do small businesses need to know?","twitter_site":"@simplybusiness","twitter_misc":{"Est. reading time":"6 minutes","Written by":"Conor Shilling"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/#article","isPartOf":{"@id":"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/"},"author":{"@type":"Person","name":"Conor Shilling","description":"Conor Shilling is a professional writer with over 10 years\u2019 experience across the property, small business, and insurance sectors. A trained journalist, Conor\u2019s previous experience includes writing for several leading online property trade publications. Conor has worked at Simply Business as a Copywriter for three years, specialising in the buy-to-let market, landlords, and small business finance. <a href=\"https:\/\/www.linkedin.com\/in\/conor-shilling-b646632a\/\" target=\"_blank\" rel=\"noopener\">Connect with Conor on LinkedIn.<\/a>"},"headline":"Tax avoidance vs tax evasion \u2013 what do small businesses need to know?","datePublished":"2022-05-03T00:00:00+00:00","dateModified":"2025-05-22T13:16:48+00:00","mainEntityOfPage":{"@id":"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/"},"wordCount":1204,"commentCount":0,"publisher":{"@id":"https:\/\/www.simplybusiness.co.uk\/#organization"},"image":{"@id":"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/#primaryimage"},"thumbnailUrl":"https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/difference-between-tax-avoidance-and-tax-evasion.jpg","articleSection":["Business structure","Business tax","Small business news"],"inLanguage":"en-GB","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/","url":"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/","name":"What are tax avoidance and tax evasion schemes?","isPartOf":{"@id":"https:\/\/www.simplybusiness.co.uk\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/#primaryimage"},"image":{"@id":"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/#primaryimage"},"thumbnailUrl":"https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/difference-between-tax-avoidance-and-tax-evasion.jpg","datePublished":"2022-05-03T00:00:00+00:00","dateModified":"2025-05-22T13:16:48+00:00","description":"Don't risk breaking the law or not paying the right amount of tax. Here's our guide to the difference between tax avoidance and tax evasion schemes.","breadcrumb":{"@id":"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/#primaryimage","url":"https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/difference-between-tax-avoidance-and-tax-evasion.jpg","contentUrl":"https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/difference-between-tax-avoidance-and-tax-evasion.jpg","width":6720,"height":4480,"caption":"djile\/stock.adobe.com"},{"@type":"BreadcrumbList","@id":"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.simplybusiness.co.uk\/"},{"@type":"ListItem","position":2,"name":"Knowledge","item":"https:\/\/www.simplybusiness.co.uk\/knowledge\/%category%\/"},{"@type":"ListItem","position":3,"name":"Tax avoidance vs tax evasion \u2013 what do small businesses need to know?"}]},{"@type":"WebSite","@id":"https:\/\/www.simplybusiness.co.uk\/#website","url":"https:\/\/www.simplybusiness.co.uk\/","name":"Simply Business UK","description":"","publisher":{"@id":"https:\/\/www.simplybusiness.co.uk\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.simplybusiness.co.uk\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Person","@id":"https:\/\/www.simplybusiness.co.uk\/#\/schema\/person\/73ec77668d0ec554cd7df8942c664049","name":"elliottstocks","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/www.simplybusiness.co.uk\/wp-content\/themes\/simply-business\/dist\/images\/default-author-avatar.webp9df6147f02078f0218660330fdfbacf3","url":"https:\/\/www.simplybusiness.co.uk\/wp-content\/themes\/simply-business\/dist\/images\/default-author-avatar.webp","contentUrl":"https:\/\/www.simplybusiness.co.uk\/wp-content\/themes\/simply-business\/dist\/images\/default-author-avatar.webp","caption":"elliottstocks"}},{"@type":"PostalAddress","@id":"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/#local-main-place-address","streetAddress":"Hylo, 105 Bunhill Row","addressLocality":"London","postalCode":"EC1Y 8LZ","addressCountry":"GB"},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/#local-main-organization-logo","url":"https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/logo.png","contentUrl":"https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/logo.png","width":533,"height":187,"caption":"Simply Business UK"}]},"geo.placename":"London","geo.region":"United Kingdom (UK)"},"parsely":{"version":"1.1.0","canonical_url":"https:\/\/simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/","smart_links":{"inbound":0,"outbound":0},"traffic_boost_suggestions_count":0,"meta":{"@context":"https:\/\/schema.org","@type":"NewsArticle","headline":"Tax avoidance vs tax evasion \u2013 what do small businesses need to know?","url":"http:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/","mainEntityOfPage":{"@type":"WebPage","@id":"http:\/\/www.simplybusiness.co.uk\/knowledge\/business-tax\/difference-between-tax-avoidance-and-tax-evasion\/"},"thumbnailUrl":"https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/difference-between-tax-avoidance-and-tax-evasion.jpg?w=150&h=150&crop=1","image":{"@type":"ImageObject","url":"https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/05\/difference-between-tax-avoidance-and-tax-evasion.jpg"},"articleSection":"Business structure","author":[{"@type":"Person","name":"Conor Shilling"}],"creator":["Conor Shilling"],"publisher":{"@type":"Organization","name":"Simply Business UK","logo":"https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2024\/04\/icon-512x512-1.png"},"keywords":[],"dateCreated":"2022-05-03T00:00:00Z","datePublished":"2022-05-03T00:00:00Z","dateModified":"2025-05-22T13:16:48Z"},"rendered":"<script type=\"application\/ld+json\" class=\"wp-parsely-metadata\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"NewsArticle\",\"headline\":\"Tax avoidance vs tax evasion \\u2013 what do small businesses need to know?\",\"url\":\"http:\\\/\\\/www.simplybusiness.co.uk\\\/knowledge\\\/business-tax\\\/difference-between-tax-avoidance-and-tax-evasion\\\/\",\"mainEntityOfPage\":{\"@type\":\"WebPage\",\"@id\":\"http:\\\/\\\/www.simplybusiness.co.uk\\\/knowledge\\\/business-tax\\\/difference-between-tax-avoidance-and-tax-evasion\\\/\"},\"thumbnailUrl\":\"https:\\\/\\\/www.simplybusiness.co.uk\\\/wp-content\\\/uploads\\\/sites\\\/3\\\/2024\\\/05\\\/difference-between-tax-avoidance-and-tax-evasion.jpg?w=150&h=150&crop=1\",\"image\":{\"@type\":\"ImageObject\",\"url\":\"https:\\\/\\\/www.simplybusiness.co.uk\\\/wp-content\\\/uploads\\\/sites\\\/3\\\/2024\\\/05\\\/difference-between-tax-avoidance-and-tax-evasion.jpg\"},\"articleSection\":\"Business structure\",\"author\":[{\"@type\":\"Person\",\"name\":\"Conor Shilling\"}],\"creator\":[\"Conor Shilling\"],\"publisher\":{\"@type\":\"Organization\",\"name\":\"Simply Business UK\",\"logo\":\"https:\\\/\\\/www.simplybusiness.co.uk\\\/wp-content\\\/uploads\\\/sites\\\/3\\\/2024\\\/04\\\/icon-512x512-1.png\"},\"keywords\":[],\"dateCreated\":\"2022-05-03T00:00:00Z\",\"datePublished\":\"2022-05-03T00:00:00Z\",\"dateModified\":\"2025-05-22T13:16:48Z\"}<\/script>","tracker_url":"https:\/\/cdn.parsely.com\/keys\/simplybusiness.co.uk\/p.js"},"_links":{"self":[{"href":"https:\/\/www.simplybusiness.co.uk\/wp-json\/wp\/v2\/knowledge\/1124","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.simplybusiness.co.uk\/wp-json\/wp\/v2\/knowledge"}],"about":[{"href":"https:\/\/www.simplybusiness.co.uk\/wp-json\/wp\/v2\/types\/knowledge"}],"author":[{"embeddable":true,"href":"https:\/\/www.simplybusiness.co.uk\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.simplybusiness.co.uk\/wp-json\/wp\/v2\/comments?post=1124"}],"version-history":[{"count":9,"href":"https:\/\/www.simplybusiness.co.uk\/wp-json\/wp\/v2\/knowledge\/1124\/revisions"}],"predecessor-version":[{"id":37678,"href":"https:\/\/www.simplybusiness.co.uk\/wp-json\/wp\/v2\/knowledge\/1124\/revisions\/37678"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.simplybusiness.co.uk\/wp-json\/wp\/v2\/media\/2607"}],"wp:attachment":[{"href":"https:\/\/www.simplybusiness.co.uk\/wp-json\/wp\/v2\/media?parent=1124"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.simplybusiness.co.uk\/wp-json\/wp\/v2\/categories?post=1124"},{"taxonomy":"hidden-category","embeddable":true,"href":"https:\/\/www.simplybusiness.co.uk\/wp-json\/wp\/v2\/hidden-category?post=1124"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.simplybusiness.co.uk\/wp-json\/wp\/v2\/coauthors?post=1124"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}