I am in the exact same position, I was with Network One in 2012 and just received a letter asking for £9K from HMRC!
Have you contacted Net One?
I am new to this forum and have have come home today to the dreaded brown envelope. I will provide some background on my situation and would appreciate any help or advice.
I had contracted between 2007-2013 to one client company using Network One and from year to year had been moved on to 'other' companies to facilitate my payroll (by Net One) lastly with Quantum.
Foolishly I thought all was above board and legal. Prior to 2007 I had not contracted and since leaving the client company stopped contracting.
Today I have opened a letter from HMRC stating I have been part of a tax avoidance scheme and owe unpaid tax for year 2011-2012. The letter states this is their assessment. To say I am nervous is an understatement and I am completely shocked.
I am unsure what my next steps should be and would appreciate some guidance and advice.
A couple of questions I have:
1. Can HMRC look back beyond 2011-2012? If so, how far back? I just need to understand the true cost of this. On the FAQ they say they can look at 'other' years but some years may be out of date.
2. Is it worth me appealing?
Many Thanks in advance.
More time posting than coding
Some things in Moderation
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Contractor Among Contractors
It is clear that Network One is HMRC's current project.
I suspect that iterations of that scheme will follow (Quantum, Endeavour)
Most of you have a discovery assessment for 2011/12.
THIS IS NOT A DEMAND FOR PAYMENT WITHIN 30 DAYS.
It's presented as being so but you are not obliged to pay. Instead you need to appeal and ask for a postponement of the tax.
That needs to be done within 30 days of issue.
I have seen the Network One templated response. I'm not convinced that it does the "appeal/postpone" job.
If, after reading it, you are also not convinced, then GET ADVICE.
Any competent accountant or tax adviser can prepare an appeal/postponement letter.
HMRC will (eventually) follow up with questions. These will be a mix of why did you use the scheme? what did you do? How do you understand it works? how much did you draw under the scheme? etc.
Some of this is a legitimate request, some is HMRC handing out enough rope. At this stage you need somebody who works FOR YOU and who is not conflicted and trying to protect a business. It might also help that they are in the UK and not several time zones away?
There are names of advisers in these threads and opinions from users. 30 minutes reading will help.
I declare a commercial interest here but you do need to take action and ignoring the discovery assessment is not to be recommended.
Just thought I'd throw my hat in the ring as well. Got the demand this week for 2011-12 period. £40k - zoiks!
This was the first correspondence from HMRC re the 2011-12 tax year however they did open an inquiry end of 2015 demanding all documentation relating to my 2013-14 tax year (also with Network One/Quantum). I think they got it in just before the end of this tax year otherwise they can't open the investigation (4 years rule or something).
I presume HMRC just added up the loans/advances figure for that tax year and are whacking me with the tax bill based on those figures. There is always the possibility that I paid those loans back though, right??
Assuming they do the same for the following years I could be looking at quite a big number so I'm hoping Network One have a suitable response.
TBF they were pretty quick to respond after the 2015 inquiry but give that Quantum no longer exist I have a feeling they might just shrug this one off. Their response back to the 2013-14 inquiry regarding my period of employment with Quantum was "maybe just try telling them that Quantum are no longer trading"!
Endeavour provided some decent responses (and I suspect Mr Endeavour and Mr Quantum may just be the same person) but the thing is, there is no request for information here. Just a demand for tax.
I'll try Network One but I suspect that will be fruitless. Then I might just state that all loans were paid back after my employment ended.
Don't have to go into details on the means by which they were paid back.
And as the company no longer exists....
i got on to live chat with Network One today...they advised:
Thanks for getting in touch. Please email a copy of your letter to firstname.lastname@example.org and someone will take a look and reply with a response that will assist you in appealing the bill with HMRC.
Contractor Among Contractors
Still gathering requirements...