Conractor loans tax avoidance

mskiy123

Hi. From 2009 to 2010 I was a contractor in London and was paid trough my company as an employee of LLP. I had an accountancy firm prepare my accounts and helping with filing them with HMRC. To reduce my tax liability, I received a 0% loan from company and then paid tax on that. The effective tax rate was 20% (or around that).

HMRC are now going back to anyone who engaged in this activity and retroactively stating that the way that it used to work before is now illegal and 'must pay the money back'. Plus Interest. They used a standard rate card of 0%, 20% and 40% to calculate the tax I should have paid in 2009 and 2010

They are stating that I avoided approximately £13,000 in tax plus they charged £3,000 interest on it.

I am completely lost on this now. What can I actually do? This activity and practice was completely allowed and legal when I was doing it and they passed legislation since to recoup back taxes.
What can I actually do here?

TheCyclingProgrammer

I recommend you sign up and read/post over here:
https://www.contractoruk.com/forums/hmrc-scheme-enquiries/

mskiy123

thank you.