Can the Revenue do this ???

loobs40

Thanks for your help everyone. I'd rather not divulge the details at this stage

loobs40

BoGoF wrote: »

You sure that HMRC aren't saying that if after making an enquiry into your Tax Returns and are of the opinion that you are not entitled to this 'exemption' then they will apply this retrospectively to previous years Tax returns, which they can do under the discovery provisions.

Yes, I'm sure

" In the Budget, the Government announced proposals to introduce legislation to retrospectively put it beyond doubt that claims such as yours are invalid"

Cook_County

OK - I understand the details are confidential.

Which professional institutes(s) is your adviser a member of?

Pennywise

I may be wrong but I presume the matter in question is an Isle of Man umbrella company that have been relying on a loophole in the double taxation treaty - income is taxed in IOM at a very low rate and so the DTT said that UK tax wasn't payable, or something like that, and I think combined with non-repayable loan advances. Many people have been under investigation for some years using this kind of scheme, so it seems that the Govt have finally changed the legislation rather than risk losing a court case. Our firm has certainly seen quite a few contractors and other similar agency workers leaving such IOM schemes and starting their own limited companies, over the past couple of week since the Budget, so it seems the good times are over for a lot of people. I apologise to the OP if I am miles away with my guess, but it really is about the only hot topic arising at the moment relating to backdated legislation changes.