BN66 - Time to fight back: Continued

[Lewis]

Oh - and I'm in MP's new scheme too. After Dragonfly what else is there?

How about a limited company with IR35 insurance to pay your legal fees and any taxes, penalities and interest in the event you lose (see QDOS TLC35 product).

Or there is the umbrella option, you might not take home as much but you can sleep at night, although even an limitied company operating within IR35 is more tax efficient than an umbrella.

I say again, if you do not fully understand how the loans scheme works then you are potentially just creating another set of woes to add to your existing set of woes. Feeling you have no alternative, when you clearly do, is not reason enough to be in another scheme in my opinion.

As a lay person I feel I understand most of the loan schemes out there from talking to colleagues who are on them. Some seem to me a lot better than others. They are all fairly simple to understand at a high level (without going into the low level detail of the law of course).

You might find the following very recent judgement interesting reading, in this case the loans from a family trust setup by the employer worked but payments into the trust were not deductable for corporation tax purposes so ultimately it didn't really work but it highlights the issues you need to consider yourself.

http://clients.squareeye.com/uploads...pra-080708.pdf

[DonkeyRhubarb]

dead jealous you obviously have the ability to pay, not quite the same for me!

Not much to be jealous about really. I'm not wealthy and although I may have the funds available to pay, it's still a "life changing" amount for me. Besides, the only reason I've got the money is because I was too chicken to spend it. In hindsight, I wish I'd invested in property or something better than just sticking it in the building society. Because of HMRC's high interest rate, my liability is more than I put on one side.

[kiwinlondon]

I've just heard second hand from someone who has been in contact with NW at MTM that the judicial review will be heard sometime in September?

Anyone know anything?

Poppy,

Theyve got to lodge the JR by end of Sept and they will hear v quickly if its been accepted.. if so it is then scheduled in the high court... think that will happen by end of Q1 next year at the latest.. maybe even this year.... fairly swift process from what ive gathered....

[BrilloPad]

It's a pity we have to wade through the personal attack stuff to get to the posts that add to the the knowledge base. For me this forum is about keeping abreast of events of options.
FWIW I am one of the very few that have so far admitted that they don't have a bean available to service a retrospective tax demand. I'm in for 3 years plus of exposure through the MP scheme which I joined because I was convinced that IR35 would get me sooner or later.
Running a Ltd Co. was a massive admin overhead too which had to be handled when I wasn't out there living out of a suitcase and earning a crust. I was glad to dump it.
That puts me in the 100k tax bill bracket with no way to address it. I wonder how many more are in the same boat and how Hector will implement the collection processes.

I have no option but to sit it out. Oh - and I'm in MP's new scheme too. After Dragonfly what else is there?

What is wrong with limited? Dragonfly is just one case.

[TAF4]

What is wrong with limited? Dragonfly is just one case.

True - but it is a watershed case that has probably established the precedent Hector needed. As I said, I felt it was just a matter of time before IR35 got me. Also running a Ltd wasn't a walk in the park either.
Didn't someone infer that once your dead more dead doesn't make much difference. Or it might have been one of those 'Sheep/Lamb' analogies.

[BrilloPad]

Poppy,

Theyve got to lodge the JR by end of Sept and they will hear v quickly if its been accepted.. if so it is then scheduled in the high court... think that will happen by end of Q1 next year at the latest.. maybe even this year.... fairly swift process from what ive gathered....

I would also love to know who else is joining them in the JR. Must be more than montpelier affected.

[BolshieBastard]

How about a limited company with IR35 insurance to pay your legal fees and any taxes, penalities and interest in the event you lose (see QDOS TLC35 product).

Call me a cynic but, I think you'll find premiums for this sort of insurance will rocket after Dragonfly. Plus, I think you'll find the ins co's will be far more restrictive on what contracts they agree to take on board as a result of the HC decision.

Ins co's measure risk against income and dragonfly severely tipped the scales towards HMRC, especially since HR people seem to want to fall over themselves to make us look like employees.

[BrilloPad]

Call me a cynic but, I think you'll find premiums for this sort of insurance will rocket after Dragonfly. Plus, I think you'll find the ins co's will be far more restrictive on what contracts they agree to take on board as a result of the HC decision.

Ins co's measure risk against income and dragonfly severely tipped the scales towards HMRC, especially since HR people seem to want to fall over themselves to make us look like employees.

But can't you get, in effect, insurance by joining the PCG? It is certainly why I am joining them.

[malvolio]

But can't you get, in effect, insurance by joining the PCG? It is certainly why I am joining them.

Well I could explain, but you wouldn't listen.

Bye...

[BrilloPad]

Well I could explain, but you wouldn't listen.

Bye...

Got it in one - I will find out for myself when I join PCG. I have just got my limited company details so I need to do PI - then will join PCG then bank account.

How many times have you said you are going then returned?

anyway bye I wish you all the best. I mean it.