rise of the loan schemes again

[NotAllThere]

Yeah 40%+ taxpayers evaded income tax (and NiCs), paid 10% to co-conspirators of this tax fraud, and yet they are the victims who don’t owe tulip.

The point of the article is that these aren't highly paid IT contractors, they're nurses, teachers and care workers, working through agencies.

They generally don't pay 40% tax, and were gulled into these schemes (often recommended by their agency, who also insisted that they couldn't be PAYE with the agency or the client) by slick salesmen with reassurances to the marks that it was all safe, no risk, QC approved, registered with HMRC, fully tax compliant and if it did go arse about tit, still nothing to worry about as the con artists would launch a strong legal defence and win. And in no way would they ever sell the debt onto another company (that the con artists run) to try to get the debt repaid as that wouldn't be in the beneficiaries interests.

Sure, some will have gone into these things from cupidity, but a significant number were conned into it, and really didn't know what they were doing. They were relying on tax advisors who were all part of the con.

[DealorNoDeal]

The point of the article is that these aren't highly paid IT contractors, they're nurses, teachers and care workers, working through agencies.

It's a double win for the companies selling these scams:

1) take a big % in fees
2) only pay Employers NICs* on minimum wage (the rest of the "salary" is a loan)

*I bet there's hundred of £millions lost in Employers NICs which is never recovered.

[NotAllThere]

It's a double win for the companies selling these scams:

1) take a big % in fees
2) only pay Employers NICs* on minimum wage (the rest of the "salary" is a loan)

*I bet there's hundred of £millions lost in Employers NICs which is never recovered.

Triple win.

3) Start legal proceedings to get the loan repaid.

[DealorNoDeal]

Triple win.

3) Start legal proceedings to get the loan repaid.

Yep, I forgot that some of these scam merchants are trying to get a second bite of the cherry.

[vetran]

I'm guessing you have no idea what's actually going on, do you....

no change there then