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  1. #21

    Nervous Newbie


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    Default Tax return 2013/14 and 2014/15

    I have also had a letter for tax returns from HMRC period 2013/14 and 2014/15, went to see an accountant he advised me to leave IQ asap (even though I use them as an employee umbrella company), I gave him my p11,p45 and p60 for that period.

    Really scared as I have no money to HMRC if they come back with APN or something like that. my current contract finished 30th June 2016. So will not use IQ anymore but I am worried as I will probably need to do tax return for next year 2016/17.

    For the period that has been requested by HMRC at present my accountant reckons i'll prob pay 17k (which I don't have).

    any legal advice on here can some one advise me on what to do please.

    Thanks

    T

  2. #22

    Contractor Among Contractors


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    You need to spend some time reading through the threads - it will be an hour well spent.

    In short, HMRC believe that ALL the payments you received from the promoter should be treated as taxable income.

    They are preparing litigation against some schemes and that is advanced in a couple of instances. Whether that happens later this year or is delayed by the April 2019 proposed tax charge (see below), we wait and see.

    Litigation groups, formed by users of particular schemes, are available. I don't know if this scheme has one. If not, then as has been suggested, somebody needs to grasp the nettle and form one. The first task would be to raise some funds for an initial legal opinion.

    Until a case is taken on a scheme that is very similar to the one you used, and a decision reached, perhaps 5 to 7 years, you will not know if HMRC is correct. Costs of litigation groups vary a lot but going all the way in Court is expensive, perhaps 700,000 t0 1,000,000. Obviously it depends on how many are in (and stay in) the group through the process as to individual cost.

    The other option is to reach a settlement. That can be done individually or as part of a group.

    Individual settlement at the moment is basically to pay the tax HMRC say is due, plus interest. They are not moving from that position.

    Settlement via a group means that some proper research and guidance can be obtained and discussions held with HMRC as to the outcomes available. Membership of such groups tends to be less expensive.

    There is no guarantee that a litigation or a settlement group will reach a position of agreeing the liability.

    There is a guarantee that HMRC will use their powers to issues APNs where they can, assessments where they can't, make requests for information and tax returns and generally make life as uncomfortable as possible. Whether that is part of a deliberate policy of intimidation as some would have you believe, or part of the agency doing it's job, is for you to judge. Certainly there are instances when through policy or incompetence, HMRC strays over the line in terms of exercising their powers.

    In an attempt to draw a line under the EBT sector, a new tax charge in April 2019 is proposed. Details are thin but it means that outstanding loans as at that date will be taxed, regardless of certain protections currently guaranteed for taxpayers. This is being resisted in terms of application (the war against introduction never got started as the law IS arriving).

    This charge may render litigation/settlement irrelevant. We don't know yet and will not know until we see the detail promised for this "summer".

    So you can choose to stand alone, join a litigation group is there is one still open, join a settlement group or all of the above.

    The only guarantee is that HMRC will want to extract cash from you as soon as they can. Eventually they may be forced to give all or some of it back, or you might be asked to pay more.

    Find some other people in the same arrangement, speak/email them, make a plan, get advice.

  3. #23

    Nervous Newbie


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    Default HMRC enquiry letter (section 9a) for my return 2014/15

    I have also received the HMRc enquiry letter (section 9a) for my return.
    HMRC says that I was with IQ contracts which was using some sort of loan scheme. I have contacted IQ Contracts who have referred me to a company called Previese does anyone have any experience of them ?

    How have contractors who received an enquiry letter this time last year dealt with this ?
    Last edited by timB; 24th July 2016 at 11:29. Reason: url removed

  4. #24

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    Default IQ Contracts/ Darwin/ Umbrella Requirements and HMRC Self Assessment Forms

    Anyone who is contracted with IQ contracts - known as Darwin or Umbrella Requirements needs to get out/leave ASAP - this was advice given to me by an Accountant in London earlier this week as I have just received a letter from HMRC requesting 3 years of self assessment forms and am therefore not a happy bunny...they even sent me the link to this forum and post - if we gathered enough people who worked for IQ based in the IOM and the UK - we could put a case together to bring them to book...I am cut and pasting this post which has obviously been written to assist unlikely souls who thought that they were using a legal and above board company to be duly paid through and this I am afraid is far from the truth...

    You need to spend some time reading through the threads - it will be an hour well spent.

    In short, HMRC believe that ALL the payments you received from the promoter should be treated as taxable income.

    They are preparing litigation against some schemes and that is advanced in a couple of instances. Whether that happens later this year or is delayed by the April 2019 proposed tax charge (see below), we wait and see.

    Litigation groups, formed by users of particular schemes, are available. I don't know if this scheme has one. If not, then as has been suggested, somebody needs to grasp the nettle and form one. The first task would be to raise some funds for an initial legal opinion.

    Until a case is taken on a scheme that is very similar to the one you used, and a decision reached, perhaps 5 to 7 years, you will not know if HMRC is correct. Costs of litigation groups vary a lot but going all the way in Court is expensive, perhaps 700,000 t0 1,000,000. Obviously it depends on how many are in (and stay in) the group through the process as to individual cost.

    The other option is to reach a settlement. That can be done individually or as part of a group.

    Individual settlement at the moment is basically to pay the tax HMRC say is due, plus interest. They are not moving from that position.

    Settlement via a group means that some proper research and guidance can be obtained and discussions held with HMRC as to the outcomes available. Membership of such groups tends to be less expensive.

    There is no guarantee that a litigation or a settlement group will reach a position of agreeing the liability.

    There is a guarantee that HMRC will use their powers to issues APNs where they can, assessments where they can't, make requests for information and tax returns and generally make life as uncomfortable as possible. Whether that is part of a deliberate policy of intimidation as some would have you believe, or part of the agency doing it's job, is for you to judge. Certainly there are instances when through policy or incompetence, HMRC strays over the line in terms of exercising their powers.

    In an attempt to draw a line under the EBT sector, a new tax charge in April 2019 is proposed. Details are thin but it means that outstanding loans as at that date will be taxed, regardless of certain protections currently guaranteed for taxpayers. This is being resisted in terms of application (the war against introduction never got started as the law IS arriving).

    This charge may render litigation/settlement irrelevant. We don't know yet and will not know until we see the detail promised for this "summer".

    So you can choose to stand alone, join a litigation group is there is one still open, join a settlement group or all of the above.

    The only guarantee is that HMRC will want to extract cash from you as soon as they can. Eventually they may be forced to give all or some of it back, or you might be asked to pay more.

    Find some other people in the same arrangement, speak/email them, make a plan, get advice.

    I have spent the last week going to hell and back and have now engaged an accountant to assist me which is costing around 450 pounds - I need help with this, as self assessment forms are not my area of expertise - this is saving peoples lives in the NHS etc...during my journey of going to hell and some of the way back I learnt something very useful about HMRC and this is that they/it do not like the word is "MP" - I wrote to my local MP - a letter indicating that I was troubled as to why HMRC are sending self assessment form to PAYE employees who pay tax and NI etc and who are working through an Umbrella company as a contractor. Might I suggest that you and any one else does the same as if enough letters are sent then we have a voice in parliament. Write the letter with intent and keep it simple and see what happens....

  5. #25

    Still gathering requirements...


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    So can I ask what people are putting on the self assessments? if you have a p11d bik figure for the loan you put that obviously, but what are people putting extra? are you declaring the loan amounts? if so are you putting them in details like

    loan 1 amount date
    loan 2 amount date
    loan 3 amount date
    loan 4 amount date

    etc.

    are you putting any words around this like

    "I received these loans from ???? (employer/trust/trustee??) on an interest free basis for x years etc..."

    or just the figures etc..

  6. #26

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    Default How this is resolved finally?

    Hi Guys
    How this is resolved finally? Did any of guys finally ended up paying dues to HMRC? How they calculate the tax and how much penalty typically they do charge?
    Thanks
    Amit
    Quote Originally Posted by m786 View Post
    Hi,
    I am one of you who received the HMRc enquiry letter (section 9a) for my return.
    HMRC says that I was with IQ contracts which was using some sort of loan scheme.
    Thay are asking all sort of information including my bank statements.
    I have spoken to CHSlimited which was set up by IQ to help ppl like us. They are advising no to reply to HMRC as its just the voluntary request from HMRC not the formal request. They will not provide any legal assistant.

    My accountant advising me to provide the info.
    I am not sure how to deal with this.
    Can some one help.

    Many Thanks.

  7. #27

    Contractor Among Contractors


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    Be careful with what you put on a tax return or indeed leave out. It's a minefield and one in which HMRC is often planting mines where you've already walked and then claimed that you were blown up several years ago.

    There is no substitute for doing your research and when you reach the end of that, if you're still confused or unsure, get professional advice.

  8. #28
    ASB
    ASB is offline

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    Quote Originally Posted by webberg View Post
    if you're still confused or unsure, get professional advice.
    And if not confused or unsure then worry about what one has missed.

  9. #29

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    Default HMRC Returns - IQ Contracts

    I was with IQ from April 2012 to September 2015.

    I have now been asked by HMRC for SA's for years 2012/13, 2013/14 & 2014/15.

    According to CHS, the schemes I was in was DOTAS for only the year 2013/14. My understanding is that this will be the only year I will receive an APN for.

    Can anyone advise if this is correct?

    Thanks in advance.

  10. #30

    Still gathering requirements...


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    Quote Originally Posted by Reider View Post
    I was with IQ from April 2012 to September 2015.

    I have now been asked by HMRC for SA's for years 2012/13, 2013/14 & 2014/15.

    According to CHS, the schemes I was in was DOTAS for only the year 2013/14. My understanding is that this will be the only year I will receive an APN for.

    Can anyone advise if this is correct?

    Thanks in advance.

    I would say that is a reasonable assumption.

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