Qubic Tax Limited – HMRC Liabilities and Failed Pension/Tax Mitigation Schemes
What Is Happening Now?
FS Litigation’s specialist tax litigation team is advising individuals affected by various schemes designed and promoted by Qubic Tax Limited, following enforcement action by HMRC and adverse Tribunal findings.
We are currently pursuing claims against both the scheme promoters and the professional advisers — including accountants — who introduced them, while supporting clients in managing liabilities and achieving settlements with HMRC.
HMRC is actively identifying Qubic scheme users following the Tribunal's decision in Qubic Tax Ltd and others v Revenue and Customs Commissioners [2020] UKFTT 215 (TC), [2020] SFTD 769, which forced disclosure of commission payments made by Qubic to introducers between 2013 and 2017.
How the Scheme Worked
The Qubic schemes were promoted as tax-efficient remuneration strategies using unfunded pension obligations and assets like gold bullion.
Clients were often introduced via trusted advisers — including accountants affiliated with networks like Probiz or AVN — who received undisclosed commissions. Many participants were unaware of these payments, giving rise to potential secret commission claims.
In schemes involving Asset Hound Limited, companies made trust-based arrangements, entered director loan accounts, and purchased gold bullion — aiming to extract profits without tax.
See also: Chancery Client Partners Ltd and others v MRC 957 Ltd and others [2016] EWHC 2142 (Ch).
HMRC’s Response
In Wired Orthodontics Ltd and others v HMRC [2023] UKFTT 17 (TC), the Tribunal ruled that £300,000 worth of gold bullion awarded to directors constituted taxable earnings.
Over 300 further scheme users had their appeals stayed pending this decision, and HMRC is now actively pursuing enforcement.
GAAR Panel Findings
The General Anti-Abuse Rule (GAAR) Advisory Panel reviewed similar schemes and found them 'contrived and abnormal'.
These opinions empower HMRC to raise assessments against scheme users.
- GAAR opinion (Gold Bullion, 2017): https://www.gov.uk/government/publications/gaar-advisory-panel-opinion-employee-rewards-using-gold-bullion
- GAAR opinion (Unfunded Pension, 2022): https://www.gov.uk/government/publications/gaar-advisory-panel-opinion-of-11-february-2022-rewards-via-creation-and-sale-of-pension-obligation
Wider Legal Risks
We have advised clients facing director disqualification, insolvency, and personal liability for unpaid tax.
See Re Avacade Ltd [2021] EWHC 1501 (Ch) and Secretary of State v Akbar [2017] EWHC 2856 (Ch).
FS Litigation’s Expertise
FS Litigation is one of the UK’s few law firms specialising in claims arising from failed tax schemes and negligent professional advice. We have successfully pursued claims against accountants and tax advisers who recommended the Qubic Schemes without proper warnings or explanation of the risks.
We are ranked Band 1 by Chambers & Partners and recognised by The Legal 500 for our high-value tax and professional negligence litigation.
Chambers & Partners: “The team is especially skilled acting on high-value tax-related disputes.”
Legal 500: “FS Litigation has a national reputation for high-profile, multi-million pound ‘big ticket’ litigation... its team is the envy of many of the top law firms it comes up against.”
What Should You Do?
If you participated in a Qubic scheme or suspect your adviser introduced one, early legal advice is essential. Strict time limits may apply.
We offer a free, confidential consultation and act under no-win, no-fee arrangements in the majority of our claims.
Funding Options
FS Litigation offers a range of funding solutions and acts on a contingent basis (no-win, no-fee) in most professional negligence claims.
We also work with tax experts and brokers to assist clients in managing their HMRC exposure.
Contact Us
To speak confidentially with a member of our team, please contact us or call us on 0161 714 4520