Government to give HMR&C new powers to combat offshore tax avoidance Government announces new measures to block tax avoidance involving offshore employment intermediaries - HM Treasury
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If you work in the UK, you will pay tax in the UK......
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If you work in the UK, you will pay tax in the UK......
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Thanks for this Lisa... interesting quote from the link.
'In many cases the employee is unaware that their payroll is located offshore and tax is being avoided.'
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Originally posted by Nathan SJD Accountancy View Post'In many cases the employee is unaware that their payroll is located offshore and tax is being avoided.' Really?Free advice and opinions - refunds are available if you are not 100% satisfied.Comment
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Originally posted by Wanderer View PostI think people were signing up to these pay schemes based somewhere like Jersey so the provider didn't have to pay Employer's NI and thus the worker could increase their take home pay (and the provider taking a nice cut too no doubt). However, the worker may not have been aware of the way the scheme operated....
I guess they just assumed the end client was paying more.merely at clientco for the entertainmentComment
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Originally posted by The Spartan View PostAnd the saying goes that 'assume' makes an 'ass' out of 'u' and 'me'
It isn't until you get a letter from HMRC changing your tax code that you know there was an 'underpayment'.Comment
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Originally posted by The Spartan View PostAnd the saying goes that 'assume' makes an 'ass' out of 'u' and 'me'merely at clientco for the entertainmentComment
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Originally posted by LisaContractorUmbrella View PostIt will be interesting to see whether they decide to invoke debt transfer for anyone recommending these schemes
I wouldn't be surprised to find out that as eek suggests, they enquired based on the advertised rate, and the agency in question told them its this rate with this payroll provider. So so had little to no idea that it was an offshore scheme.Comment
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Originally posted by LisaContractorUmbrella View PostIf you work in the UK, you will pay tax in the UK......
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....Free advice and opinions - refunds are available if you are not 100% satisfied.Comment
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