Just to add to the doom, two big IR35 losses

[Bumfluff]

Some porky pies being told somewhere. I think we worked out that was his total tax liability which implied he hadn't paid any tax over the period he was investigated.

Does the 99K include interest and penalties ? Say you fail IR35 and were had a grosss rev of £120k (exc VAT), through a LTD you would get 70% pay £36k, if you were caught by IR35 say you take 55% so you should of £54k. So you under paid £18k a year x 3 = £54k interest 7% approx £6k (cant be bothered to work out compound interest), so thats £60k plus penalties which I dont have a clue on so say £10k = £70k, year you right he must not have paid tax. I still think its pretty easy though to end up £70K plus, £550 a day, same gig for 3 years.

Do you think they will ever come for the people who used MSCs before last April ?

[Ardesco]

I think his rate was £40/hour.

Look through the other thread it is discussed there along with links to various external sites with info.

[AlfredJPruffock]

Do you think they will ever come for the people who used MSCs before last April ?

To be in the safe side - just turn yourslef in now and you'll get a lighter sentence.

All of us.

Yeh - though we enter the Valley of the Shadow of Death
We shall fear no evil ...

[Xenophon]

I think his rate was £40/hour.

Look through the other thread it is discussed there along with links to various external sites with info.

Flippin' 'eck!! He owes £99k after 3 years on £40 per hour??

[Ardesco]

Flippin' 'eck!! He owes £99k after 3 years on £40 per hour??

Which means he must have been doing something dodgy...

[The Lone Gunman]

Does the 99K include interest and penalties ? Say you fail IR35 and were had a grosss rev of £120k (exc VAT), through a LTD you would get 70% pay £36k, if you were caught by IR35 say you take 55% so you should of £54k. So you under paid £18k a year x 3 = £54k interest 7% approx £6k (cant be bothered to work out compound interest), so thats £60k plus penalties which I dont have a clue on so say £10k = £70k, year you right he must not have paid tax. I still think its pretty easy though to end up £70K plus, £550 a day, same gig for 3 years.

Do you think they will ever come for the people who used MSCs before last April ?

I think penalties can be pretty huge. Something at the back of my mind says 50% but I cant help thinking it might be 100% if you took no advice prior. Another complaint about IR35. Why should it need advice.

[Churchill]

Flippin' 'eck!! He owes £99k after 3 years on £40 per hour??

Is that all?

Tay.

[Ardesco]

Then again, he did represent himself.

So he probably put his foot in it a few times and pissed the tax inspectors off enough that they thought he was lying/covering up something dodgy on purpose. If this was the case would expect them to throw the book at him.

More proof that when it comes to dealing with the HMRC use a professional as an intermediary.

[Andy2]

what if instead of coughing up £99k he buggers off to some other country ?
what can hmrc do ?

[Pinto]

I think penalties can be pretty huge. Something at the back of my mind says 50% but I cant help thinking it might be 100% if you took no advice prior. Another complaint about IR35. Why should it need advice.

Yes, the penalties can be up to 100% of the unpaid tax and NIC