Policy background Disclosure of contributions avoidance arrangements
Disclosure of tax avoidance schemes (DOTAS) was introduced in 2004 and seeks to provide HMRC with early information about new tax and NICs avoidance schemes, how they work and those who use them. It creates obligations on those who promote or enable tax avoidance to disclose details of the avoidance schemes they are promoting.
	The government announced in its Budget 2020 a package of measures to target those who promote and market tax avoidance schemes. A government consultation seeking views on proposals to strengthen the sanctions against promoters of tax avoidance, including draft legislation, was launched on 21 July 2020 and closed on 15 September 2020. Respondents were generally supportive of the package and the government has introduced legislation in the Finance Act 2021.
	These DOTAS changes ensure that HMRC can act where promoters fail to provide information on their avoidance schemes and make taxpayers aware at an earlier stage where it suspects a tax avoidance scheme is being sold. The NICs Act replicates what is in the Finance Act 2021 in that it provides a mechanism for ensuring there is transparency for people who are involved in NICs avoidance schemes, and to change the behaviours of those involved in promoting such schemes.
	The existing legal requirements to disclose schemes aiming to avoid NICs are imposed by regulations. These regulations are made under section 132A of the Social Security Administration Act 1992.