HMRC letter tax avoidance claim

savvysearcher

HMRC have sent me a a very generic letter saying they believe I've used a tax avoidance scheme in the form of 'disguised remuneration'. I have and am under a Umbrella Scheme though the scheme informed me they are HMRC compliant when I queried this when joining. The HMRC give no details on the letter as to how they have arrived at their view of tax avoidance or any specific figures relating to me. They however propose i make a settlement to prevent a loan charge prior April 2019 and ask I contact them. I'm aware that a lot of other people I know have been landed letters with the same wording. I am hesitant to contacting them direct in case it makes matters worse in something they could use against me. I presume the best option is to get a decent accountant to respond? Any advice would be appreciated.

Sibbers123

Yes, definitely get an accountant - probably a mid-sized firm that has experience in handling settlement with HMRC for disguised remuneration schemes.

The reason HMRC will know is that the tax avoidance scheme used will have been given a Scheme Reference Number (SRN) which the promoter would've put on your tax return.

Basically, HMRC are saying the 'loans' you received are taxable as income if the loan is still outstanding as at 5th April 2019. You're not alone, HMRC say around 40,000 contractors have been affected by this - the promoters of the schemes have pulled the wool over your eyes.

There is a group called the Loan Charge Action Group which are taking HMRC to court over the loan charge so you may want to hold out on settling BUT if you don't settle and HMRC win in court (they probably will) you will face a far higher tax bill - catch 22 unfortunately.

savvysearcher

thanks for the quick and very informative response. Will follow advise.

00ec25

HMRCVictim wrote: »

people who are fighting this insane retrospective tax.

LOL
You knowingly chose to not pay tax on income you received when you knew full well would have been subject to tax had you been an "ordinary" worker.
So please do not try to pretend you are hard done by now you are going to be caught and made to pay up like ordinary people do.

le_loup

HMRCVictim wrote: »

The Loan Charge is a Retrospective Tax which has been described variously as “HMRC’s revenge”, “a fiasco”, “a farce”, and “undermining the rule of law”.

How so?
If you took a "loan" instead of salary and haven't repaid the loan how is that a reasonable means of remuneration?
You seem to be in favour of using public services and not wishing to contribute to them.
Strange attitude.

Pennywise

savvysearcher wrote: »

I have and am under a Umbrella Scheme though the scheme informed me they are HMRC compliant when I queried this when joining.

Would you really expect them to say it wasn't compliant when they're trying to sell you something? As others have said, you need an accountant experienced in dealing with tax enquiry settlements so as to minimise the damage.