A recently established animal welfare charity, supported by tax efficiency company One Formula LLP, has been closed down HMRC. While a full investigation is underway, it is rumoured that the animal welfare charity was used for tax fraud as part of a multi-million-pound tax avoidance scheme. Designed for investors to claim various forms of tax relief, such as Gift Aid, the tax avoidance scheme was operated by Manchester financial firm One Formula LLP. Formed through the partnership of a financial advisor, city trader, insurance advisor, ex-Wales international rugby player and a former police officer, One Formula LLP promised the super-rich multi-million-pound tax savings.
However, as things that are too good to be true usually go, it has become increasingly clear that the slick financial professionals were under HMRC’s watch all along. A source from HMRC said on the One Formula LLP tax fraud investigation, “We received credible reports about the true nature of One Formula LLP’s tax efficiency schemes quite a while ago. Since then, we had maintained a close eye on their operations. We’ve received numerous tax relief claims and tax rebates claims, which experts at our various departments traced back to One Formula LLP. Our investigation is very much in its nascency and there’s not much more to say than if you’re considering tax fraud, HMRC is watching.”
Alongside the animal welfare charity, HMRC is also investigating possible tax fraud committed by One Formula LLP under the auspices of a number of other charitable ventures the company had pledged its support to. A knife crime charity which was used to launch the “One Formula to Tackle Knife Crime” campaign is rumoured to be the next on HMRC’s list, as part of the One Formula LLP tax fraud investigation. With no official word from the company and all attempts to contact executives remaining unanswered, the writing seems to be on the wall for some of Manchester’s most powerful financial experts.