Umbrella company in liquidation

laurajane1984

Help!! Between 2018-2019 I worked for a social care agency and due to ir35 I checked whether I could use a company called tailored limited which they said yes was compliant. Help!

I've received an email 2 weeks ago from the Director of my old Umbrella Company stating that they have gone into liquidation. To put things frankly it was a dodgy umbrella company which used a salary advance as an additional payment. 

The Director has stated in the email that the liquidators MAY ask for repayment of these salary advances. They have then forwarded details of a specialist solicitor which he feels I may need if they do pursue these repayments?  Last year I was contacted by the hmrc that it was a tax avoidance scheme as part of wages which I am trying to put in order. Today I have a letter I owe £20,000 to the company tailored services and they wish me to pay within 28 days. I’m devastated I would have to go bankrupt I cannot pay this I’m a single parent of 2 young children. To seek legal advice is going to be expensive as well I wonder whether if others are in the same situation whether a solicitor would take on a case jointly by more of us so it wouldn’t be so expensive. Any other advice 

Thrugelmir

Is there a Facebook Group?  Once HMRC get their claws in there's rarely an easy escape. 

TonyMMM

It sounds like you have been caught out, like many others, in what was essentially a clear tax evasion scheme.
Your salary advance payment income from the umbrella scheme would have paid as a "tax free loan" and now that the company is being wound up the loan has become payable (which it was never expected to be). 
You need to take specialist advice  - you can't afford not to . You may owe £20k to the liquidators and/or a large tax bill to hmrc, who will expect to be paid.

laurajane1984

Thankyou I cannot find any Facebook page to find others I suspect there’s more of us out there who have received letters this week. I have no idea where to start with all of this 

Thrugelmir

laurajane1984 said:

Thankyou I cannot find any Facebook page to find others I suspect there’s more of us out there who have received letters this week. I have no idea where to start with all of this 

Start a new thread on here with the Company Name in the title. May then spark some responses over the coming weeks. 

kangoora

I'd be very reluctant to use a specialist solicitor recommended by the director of a failed company I may have an interest in. Whilst it all may be above board think very carefully and do whatever checks you can before agreeing to this/signing up.

block10

The dedicated contractoruk forum, might be more relevant for this type of query.  

https://www.contractoruk.com/forums/hmrc-scheme-enquiries/139314-old-umbrella-company-tailored-liquidation.html

Robert_McGeddon

I'm curious to know what happened to the "salary" you actually earned. I struggle to understand why an umbrella company would advance anyone £20,000 with no security attached. Did they owe you salary or other compensation for your services? If so, there may be an offset available to you.

The tax issue would still be a separate matter, of course.

MinuteNoodles

It's done as a tax fiddle, the "loan" not being taxable income.

Swipe

If the loan is repaid to the liquidators surely they could get a rebate from anything they've already paid to hmrc when they caught up with them recently? Either way it sounds like a scam to me.

Sebo027

laurajane1984 said:

Help!! Between 2018-2019 I worked for a social care agency and due to ir35 I checked whether I could use a company called tailored limited which they said yes was compliant. Help!

I've received an email 2 weeks ago from the Director of my old Umbrella Company stating that they have gone into liquidation. To put things frankly it was a dodgy umbrella company which used a salary advance as an additional payment. 

The Director has stated in the email that the liquidators MAY ask for repayment of these salary advances. They have then forwarded details of a specialist solicitor which he feels I may need if they do pursue these repayments?  Last year I was contacted by the hmrc that it was a tax avoidance scheme as part of wages which I am trying to put in order. Today I have a letter I owe £20,000 to the company tailored services and they wish me to pay within 28 days. I’m devastated I would have to go bankrupt I cannot pay this I’m a single parent of 2 young children. To seek legal advice is going to be expensive as well I wonder whether if others are in the same situation whether a solicitor would take on a case jointly by more of us so it wouldn’t be so expensive. Any other advice 

The letter saying you owe £20k to Company Tailored Services - who is it from?