HMRC enquiry letter for Winchester IQ Contract under section 9a

[DotasScandal]

I've not read of someone being taken to court and being charged. I'd assume this must all take time. ?

And you will never hear of it.
Your assumption is wrong, for here the matter is not one of time. HMRC do not have a legal leg to stand on and they do NOT want the matters determined by courts, because it will then become apparent that this is all just an unlawful cash grab on their part.
Contrary to the rumor they are trying to spread, HMRC have never won a case against a correctly planned and excuted "contractor scheme".
This is why they have to resort to stunts like the retrospective "2019 charge"

How often does your Government lie to you?

[pegzyisdeed]

So what are u saying? I should leave the scheme and resort to LTD or not care and hope I don't get caught up in this 2019 litigation? I apologise in advance if I've totally misread your post. I'm new to this issue and haven't spent the required time reading up.

[Delendog]

So what are u saying? I should leave the scheme and resort to LTD or not care and hope I don't get caught up in this 2019 litigation? I apologise in advance if I've totally misread your post. I'm new to this issue and haven't spent the required time reading up.

Leave the scheme ASAP go limited. Don't be surprised when you get a letter from HMRC saying you are expected of using a tax avoidance scheme.

[DotasScandal]

So what are u saying? I should leave the scheme and resort to LTD or not care and hope I don't get caught up in this 2019 litigation? I apologise in advance if I've totally misread your post. I'm new to this issue and haven't spent the required time reading up.

Just told you to run away from your scheme and not look back. What's done is done, but now you've realised that you're in a hole, stop digging.
Once you've done that, read up on the situation and consider joining Big Group. If you speak to them they'll tell you if it's suitable for you. And don't worry, cause there are thousands like you!

[pegzyisdeed]

Thanks for the advice, I think I'll read up on the big group.

[rado]

I too have received a similar enquiry from HMRC and used IQContracts in 13/14.

CHS has more or less advised me to question HMRC on why they are asking for information which has already been provided through my P11D and tax return. Furthermore, IQ were DOTAS registered which means HMRC already know how they operate so a lot of the questions they've asked me are things they already know.

Did anyone get independent advice from a tax specialist? Or how did you respond this this enquiry?

It's worth adding that for the 13/14 tax year, IQContracts to date have been no help other than pointing me in the direction if CHS, who will only supply generic advice.

PS. I'm off these schemes now.

Hello,
So Did you respond back to HMRC and what was the outcome?

[jbryce]

Hello,
So Did you respond back to HMRC and what was the outcome?

I doubt if anyone will get a reply back from HMRC that quickly. If you are in the same boat, I'd suggest you join Big Group....plenty of us over there....

[DotasScandal]

Also, it's unlikely people will share their experience on this public forum read by HMRC
The Big Group forum is where it's at.

[Barrygbr]

Im am in same situation for 2013-14 and not sure what to do. If anyone else is in same situation ( I assume loads are ) then we should group together and get legal advice.

I absolutely 100% agree with that.

[Barrygbr]

Anyone who is contracted with IQ contracts - known as Darwin or Umbrella Requirements needs to get out/leave ASAP - this was advice given to me by an Accountant in London earlier this week as I have just received a letter from HMRC requesting 3 years of self assessment forms and am therefore not a happy bunny...they even sent me the link to this forum and post - if we gathered enough people who worked for IQ based in the IOM and the UK - we could put a case together to bring them to book...I am cut and pasting this post which has obviously been written to assist unlikely souls who thought that they were using a legal and above board company to be duly paid through and this I am afraid is far from the truth...

You need to spend some time reading through the threads - it will be an hour well spent.

In short, HMRC believe that ALL the payments you received from the promoter should be treated as taxable income.

They are preparing litigation against some schemes and that is advanced in a couple of instances. Whether that happens later this year or is delayed by the April 2019 proposed tax charge (see below), we wait and see.

Litigation groups, formed by users of particular schemes, are available. I don't know if this scheme has one. If not, then as has been suggested, somebody needs to grasp the nettle and form one. The first task would be to raise some funds for an initial legal opinion.

Until a case is taken on a scheme that is very similar to the one you used, and a decision reached, perhaps 5 to 7 years, you will not know if HMRC is correct. Costs of litigation groups vary a lot but going all the way in Court is expensive, perhaps £700,000 t0 £1,000,000. Obviously it depends on how many are in (and stay in) the group through the process as to individual cost.

The other option is to reach a settlement. That can be done individually or as part of a group.

Individual settlement at the moment is basically to pay the tax HMRC say is due, plus interest. They are not moving from that position.

Settlement via a group means that some proper research and guidance can be obtained and discussions held with HMRC as to the outcomes available. Membership of such groups tends to be less expensive.

There is no guarantee that a litigation or a settlement group will reach a position of agreeing the liability.

There is a guarantee that HMRC will use their powers to issues APNs where they can, assessments where they can't, make requests for information and tax returns and generally make life as uncomfortable as possible. Whether that is part of a deliberate policy of intimidation as some would have you believe, or part of the agency doing it's job, is for you to judge. Certainly there are instances when through policy or incompetence, HMRC strays over the line in terms of exercising their powers.

In an attempt to draw a line under the EBT sector, a new tax charge in April 2019 is proposed. Details are thin but it means that outstanding loans as at that date will be taxed, regardless of certain protections currently guaranteed for taxpayers. This is being resisted in terms of application (the war against introduction never got started as the law IS arriving).

This charge may render litigation/settlement irrelevant. We don't know yet and will not know until we see the detail promised for this "summer".

So you can choose to stand alone, join a litigation group is there is one still open, join a settlement group or all of the above.

The only guarantee is that HMRC will want to extract cash from you as soon as they can. Eventually they may be forced to give all or some of it back, or you might be asked to pay more.

Find some other people in the same arrangement, speak/email them, make a plan, get advice.

I have spent the last week going to hell and back and have now engaged an accountant to assist me which is costing around 450 pounds - I need help with this, as self assessment forms are not my area of expertise - this is saving peoples lives in the NHS etc...during my journey of going to hell and some of the way back I learnt something very useful about HMRC and this is that they/it do not like the word is "MP" - I wrote to my local MP - a letter indicating that I was troubled as to why HMRC are sending self assessment form to PAYE employees who pay tax and NI etc and who are working through an Umbrella company as a contractor. Might I suggest that you and any one else does the same as if enough letters are sent then we have a voice in parliament. Write the letter with intent and keep it simple and see what happens....

I was with IQ for just short of four years, same scenario.

I will write to my MP as it is worth a try. Anybody else out there please do the same on the off chance that it may be helpful.