Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
If you work in the UK, you will pay tax in the UK......
What you should really say is "British firms employing British workers must pay British taxes". Let's be clear here, it's the employers who are avoiding tax, not the employees....
As for a debt transfer happening - I don't think so because what they are doing is perfectly legal. Also, many of these workers are teachers and nurses so the debt would be transferred back onto the school/NHS which would be a bit of an own goal. Transferring it onto the offshore scheme provider (or even an umbrella/agency) runs the risk of instantly bankrupting the provider so no one would get paid that month which wouldn't be good for business either.
So what will happen is that they softly softly change the rules and people stop doing it from April 2014. People who did use these schemes now take a hit on their net income of about 5% as they switch to alternate payment schemes. It was good while it lasted but apparently tax avoidance does pay....
I agree with what you are saying, but with regards to transferring the debt to an agency, IMO this would instantly stop all agencies using or making payments to these schemes. This would significantly reduce the cost of chasing schemes that evolve quicker than HMRC can keep up with.
Comment