BN66 - Time to fight back!!!

[smalldog]

http://www.parliament.the-stationery...sy/430/430.pdf

page 68.....

[DonkeyRhubarb]

Well if you ask me, if after all of this you only work out a bit worse off than IR35 caught, I don't think that's bad at all. Obviously not nice for you guys, I appreciate, but at least it's not bankruptcy! In fact still better than going permie.

Yes, but it's not so good if you already spent the money on fast cars, fancy holidays etc.

A lot of people I know have not kept the money.

It's not like it's even that easy to sell or remortgage your house at the moment to raise the money.

[ChimpMaster]

Yes, but it's not so good if you already spent the money on fast cars, fancy holidays etc.

A lot of people I know have not kept the money.

It's not like it's even that easy to sell or remortgage your house at the moment to raise the money.

And it can be a lot of money if you've been contracting within this arrangement for a number of years. If for example you're on a £100k/year contract, you would owe about £30k in taxes and then add the penalties and interest on top - for each year.

So 5 years' worth could mean HMRC string you for over £200k, depending on the scheme and how much you have already paid through PAYE etc.

[DonkeyRhubarb]

And it can be a lot of money if you've been contracting within this arrangement for a number of years. If for example you're on a £100k/year contract, you would owe about £30k in taxes and then add the penalties and interest on top - for each year.

So 5 years' worth could mean HMRC string you for over £200k, depending on the scheme and how much you have already paid through PAYE etc.

Yes, that's about right. By my reckoning, if you have been in the scheme for 5 years, then you need to uplift the tax owed by about a 1/3rd to cover the interest (5 * 30k * 1.33 = 200k).

The whole point of these schemes is to avoid paying tax, so anything already paid through PAYE/on account will be negligible.

I don't think I would be able to sleep at night if I'd blown the cash.

[smalldog]

Im gonna be really P*ssed off if I have to sell one of my houses to pay HMRC if we lose!!! Wouldnt be so bad if this didnt happen to coincide with a bad housing market....

could always try suing Montp I guess if we lose, after all its their tax planning solution and if it doesnt actually work could we hold them liable?

[DonkeyRhubarb]

Response from David Cameron

One of my mates received the following reply from David Cameron who is his local MP.

....Retrospective legislation should only be used in exceptional circumstances but the Government appears to be increasingly willing to use retrospective legislation in tax matters. Therefore, I hope that you will be pleased to know that we intend to table amendments to the Bill to remove the retrospective nature of these provisions.

In terms of other developments, I have had contact with PriceWaterhouseCoopers who are continuing to challenge the Revenue vigorously over the use of retrospection. Apparently, HMRC have turned a blind eye to the DTA loophole for many years, and it is even referred to in their "tax manual".

There are other things going on behind the scenes that I can't mention here but watch this space...

[zippo]

DonkeyRhubarb,

Obviously I would be very keene to find out whats going on ...... Is there another way other than this forum of getting some more info ?

Cheers

[smalldog]

brilliant the pressure is building...they are a bloody law unto themselves!

[DonkeyRhubarb]

zippo,

Obviously I would be very keene to find out whats going on ...... Is there another way other than this forum of getting some more info ?

I know it's a bit frustrating but we should know more within the next couple of weeks. Just keep watching this space and I will update the thread as and when I can.

[BrilloPad]

One of my mates received the following reply from David Cameron who is his local MP.

....Retrospective legislation should only be used in exceptional circumstances but the Government appears to be increasingly willing to use retrospective legislation in tax matters. Therefore, I hope that you will be pleased to know that we intend to table amendments to the Bill to remove the retrospective nature of these provisions.

In terms of other developments, I have had contact with PriceWaterhouseCoopers who are continuing to challenge the Revenue vigorously over the use of retrospection. Apparently, HMRC have turned a blind eye to the DTA loophole for many years, and it is even referred to in their "tax manual".

There are other things going on behind the scenes that I can't mention here but watch this space...