HMRC Scheme Enquiries: Network One

[sebobill]

Why is NW1 not taking any responsibility?

The way the law around this works makes it a breeding ground for companies like NW1 to rip off contractors and it is not fair. HMRC should be setting their dogs on the employer and getting them to collect the money from their employers or pay it themselves. If this was the way it was set up, they would make sure their services were secure or at least covered by insurance

[GemmaC]

A lot of scheme providers have vanished into thin air but that hasn't stopped HMRC from chasing us. How are you going to prove you paid them back then?
I suggest you get advice. Lie to HMRC and it will make things worse.

Technically the loans _were_ paid back. They were paid back via various share scheme vehicles which generated a profit that was a) either taxed at a very low rate or b) free of tax given the country in which the profit was generated. Or something to that effect. But they were actually paid back.

Stating that all loans were paid back at the end of employment is not lying. And in fact, this formed part of the response provided by Network One to my 2013-14 inquiry. You do not have to go into details as to how they were paid back.

Network One got back to me pretty swiftly asking to see a copy of the letter so they could form a response.

My feeling is this; Network One MUST have anticipated this. You can't operate a scheme such as this and hope that HMRC just don't bother investigated. Ever. They invested 100's of thousands into obtaining legal counsel from tax advisers and QCs when drawing up the original scheme. So if at the point when the investigation comes they have no decent response then, well, that would be pretty upsetting.

[Iter]

Emi scheme during 2011-12

I have also received letter, as previous posts have said the loan is paid back, I take it that is the main factor and should qualify. Also note that during 11-12 this scheme was an EMI share scheme which is actually promoted by hmrc

[thelittleguy]

Stating that all loans were paid back at the end of employment is not lying. And in fact, this formed part of the response provided by Network One to my 2013-14 inquiry. You do not have to go into details as to how they were paid back.

Network One got back to me pretty swiftly asking to see a copy of the letter so they could form a response.

Has your enquiry been resolved? did you need to pay anything?

[DotasScandal]

The way the law around this works makes it a breeding ground for companies like NW1 to rip off contractors and it is not fair. HMRC should be setting their dogs on the employer and getting them to collect the money from their employers or pay it themselves. If this was the way it was set up, they would make sure their services were secure or at least covered by insurance

You're new around here, eh?

[Iter]

I've only been registered a few days as only got letter yesterday ( even though hmrc dated it 9th!). I need to contact network one, only concern is every day delaying payment more interest( although only about £1 per day), despite already having 1300 roughly added interest.
After 2011-12, I think N.O switched to ebt or jsop scheme? I became ltd from 2014. I'm ising another tax planning now which is believed "known to be known" by hmrc and has already proving in court cases, although has now made me think stepping away altogher?

Has anyone actually received response and challenged this with hmrc yet?

[DotasScandal]

I became ltd from 2014. I'm ising another tax planning now which is believed "known to be known" by hmrc and has already proving in court cases, although has now made me think stepping away altogher?

And that would be? We are not aware of any contractor tax planning which has been proven to "work" by a court (nor, to be fair, the other way around - if we forget the comedic "Boyle case"). Reading stories throughout the forum will, we hope, incite you to exit rapidly.

And when you're done, consider joining Big Group, because clearly you have a big bullseye painted on you.

[cojak]

I think the correct question DS is 'believed by whom?'.

And I suspect that we both know the answer to that...

[bluemonkey71]

Technically the loans _were_ paid back. They were paid back via various share scheme vehicles which generated a profit that was a) either taxed at a very low rate or b) free of tax given the country in which the profit was generated. Or something to that effect. But they were actually paid back.

Stating that all loans were paid back at the end of employment is not lying. And in fact, this formed part of the response provided by Network One to my 2013-14 inquiry. You do not have to go into details as to how they were paid back.

Network One got back to me pretty swiftly asking to see a copy of the letter so they could form a response.

My feeling is this; Network One MUST have anticipated this. You can't operate a scheme such as this and hope that HMRC just don't bother investigated. Ever. They invested 100's of thousands into obtaining legal counsel from tax advisers and QCs when drawing up the original scheme. So if at the point when the investigation comes they have no decent response then, well, that would be pretty upsetting.

Every scheme user was told it was approved by a QC.
As I say get advice. Sounds like proper snake oil being sold.i hope I'm wrong.

[cojak]

So your scheme provider believes, do they?