No To Retro Tax – Campaign Against Section 58 Finance Act 2008

[smalldog]

Couldn't agree more. If you are in a scheme. Get out.
Start saving, be prepared fight and then, if necessary, to negotiate for time to pay.

You, like a lot us, were naive. Plan for the worst, pray for the best.

In the meantime, open up a Limited Company get a good accountant.

I would be even bolder, if you are in an ltd make sure ur putting something aside! They're coming after you lot too, just a matter of time. Retro is now the norm.

[Fireship]

It's more than plausable. It's highly probable.
I think it's very evident that Hector wants everyone to go through PAYE. That was the reason for IR35 in the first place.
Do you think that one man working through a ltd company for one client should be outside IR35?
It is blantently clear that merely including a clause in the contract for right of substitution does not actually mean the right is there in practice.
Hector knows this and will seek to move against it.

Anyway, shouldn't you be on full PAYE like perms if you're as ungreedy as you say?


Your accusational assumption is unpleasant.
I'm sure the vast majority of us don't desire to see anyone else go through misfortune.
It's you with the dubious attitude taking glee in the fact that you're ok (for now) and we are being targeted.

And let's not forget legislation has been proposed removing the right of substitution as a means of determining employment status!! Let's see who's panicing when that penny drops....

Granted it's not the only indicator of status but it sends a clear message as to where HMRC are aiming their sights....

[nickersan]

Given contractors, however they work, provide flexibility to their clients, who I don't imagine will be happy to give that up - enter stage-left zero hour contracts with PAYE on all earnings (and scrimping and saving to try and cover yourself when between contracts)

Time to find one of these perm software developer roles that apparently can't be filled due to a skills shortage...

[DeadDOTAS]

Sounds to me the only way out is by becoming a PAYE perm?

Thank you for your comments and ideas - certainly helpful.

Sounds to me like the only route out of this DOTAS mess is going perm and become a PAYE employee.
Which includes the usual politics, 360 semi-annual performance reviews and the inability to working for more than one clients -
from my perspective the key benefit of being a contractor.

Let me ask bluntly: have they killed off the contractor market in the UK? Because that's what this all seems to be coming down to?

Wonder what PCG has got to say on all this?

Happy days - not!

[DeadDOTAS]

Taxaid.org.uk - Useful website...

Looks like I will be reading a lot on here:
TaxAid

[DeadDOTAS]

FYI - Court of Appeal rules on splitting costs for Eclipse tribunal

Hot off the press:

"Court of Appeal rules on splitting costs for Eclipse tribunal

The promoters of a film partnership tax avoidance scheme who lost their case against HMRC now face paying the costs of preparing the paperwork involved following a ruling by the Court of Appeal"

https://www.accountancylive.com/cour...lipse-tribunal

[Fireship]

HMRC’s idea of common sense

Looks like I will be reading a lot on here:
TaxAid

Tax debt, bankruptcy and Special Relief « TaxAid

It is important to understand that the Enforcement Office does not behave like most commercial creditors. In particular, it often petitions for bankruptcy even where it is clear that this will not benefit HM Revenue and Customs because the taxpayer has no assets. Indeed, sometimes the bankruptcy costs the government money, because the bankrupt loses their home and/or job and is forced to rely upon social housing and/or welfare benefits.

[Laxmi]

Rock and Hard place

Thank you for your comments and ideas - certainly helpful.

Sounds to me like the only route out of this DOTAS mess is going perm and become a PAYE employee.
Which includes the usual politics, 360 semi-annual performance reviews and the inability to working for more than one clients -
from my perspective the key benefit of being a contractor.

Let me ask bluntly: have they killed off the contractor market in the UK? Because that's what this all seems to be coming down to?

Wonder what PCG has got to say on all this?

Happy days - not!

Lets see what all the Bansters say - who use Contractors heavily for the benefits they get - highly skilled resources who don't want to just climb a ladder, network and do no real work. Then they'll have no choice but to use those incompetant and expensive 12 year old 'consultants' and see projects fail, after all the Govmt use them heavily as it's not their money but the taxpayers.

Where are all the clients in this! We have to sign upteen documents to proove we're not perms and then fight the other side that niavely thinks we are, Rock and Hard place and left to fight both sides.

[davieloco]

Tax debt, bankruptcy and Special Relief « TaxAid

It is important to understand that the Enforcement Office does not behave like most commercial creditors. In particular, it often petitions for bankruptcy even where it is clear that this will not benefit HM Revenue and Customs because the taxpayer has no assets. Indeed, sometimes the bankruptcy costs the government money, because the bankrupt loses their home and/or job and is forced to rely upon social housing and/or welfare benefits.

There are other ways to deal with things such as an IVA but that requires 75% of the creditors to agree to it. There is the possibility that if the HMRC have not calculated your tax debt to them that your scheme provider may have the 75% margin to push it through which raises a rather interesting conundrum as it means that you would be paying back a percentage to the scheme provider and the HMRC, if 75% of the creditors vote for the IVA you cannot be made bankrupt and your debts would be dealt with in 5-6 years.

I suppose for the schemes that used loans it is proving that they were actually loans in the first place.

DL.

[nickersan]

While I accept that it was a free choice (based on supposedly expert opinion) whether an individual used a tax planning scheme or not, the thing that I find most annoying is that, given there has been full disclosure to HMRC via the DOTAS scheme and the speed with which HMRC now seem capable of issuing assessments, was there really no legal (let alone moral) requirement for them to have addressed these issues sooner, at a time when doing so wouldn't have proved ruinous to so many?