CHERYL Tweedy is facing legal action from the HMRC over alleged tax avoidance, it has been reported.
The singer has been accused of using a scheme to pay capital gains tax instead of income tax and national insurance.
Getty – Contributor Cheryl Tweedy’s firm is fighting the HMRC
By paying capital gains tax, she would have been charged at a lower rate.
The Sunday Times reported that the star’s personal company – CC Entertainments – was named in court papers.
In the documents seen by the publication, it was claimed the HMRC had wanted to make Cheryl’s case the lead in a court action against 56 separate firms.
The amount of the claim against Cheryl – who has a son Bear with One Directioner Liam Payne – is unknown.
Judge Jennifer Dean said: “The appeal of CC Entertainments is a straightforward ‘profit extraction’ case where the single 100% shareholder [Tweedy] signed a contract of employment.
“She was awarded a GSOP [growth securities ownership plan] security said to qualify as an employment-related security.”
It is believed CC Entertainments was named after Cheryl’s initials when she was married to England footballer Ashley Cole.
It comes after Lorraine Kelly won a landmark case against the HMRC, after a judge described her as her own boss and not an ITV employee.
The Sun columnist, 59, rejected the taxman’s claim the company she gets paid through for her work is a front.
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The Scottish star signed a deal with ITV in 2012 through her firm Albatel Ltd but HM Revenue and Customs insisted she became a staffer and sent her a huge retrospective bill of £1.2million in 2016.
She had repaid £1.02million, but won a dispute over the outstanding difference – although she was later left with a hefty legal bill despite successfully defending the claim.
The Sun Online has contacted representatives for Cheryl for comment.
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