(This was my response to a post in a previous thread, I'm moving it to a new thread) I had written........
OK, my first post in response to this thread......so be kind to me.
I’ve read through lots of the information here from people caught up in schemes now being investigated by HMRC – this is my story, to which I need to make a decision on which way to go, rollover or fight. I’m not an accountant, or tax specialist just one of the many gullible contractors who now needs to fix things and decide my next move.
I operated as LTD until April 2012 – a fellow contractor in the same office suggested I give Bedouin a call – I did just that and had a chat with a chap who suggest he come to my place of work (FTSE top 10 company) to demonstrate the ‘benefits’ of the scheme
The shiny suit (name of Jon Bannister) sold me the story – legal, HMRC compliant, endorsed by XXX etc etc so I signed up in good faith (the mistake)
I stayed with Bedouin/Redstone from April 2012 until March 2015 – they wanted to change names again – this made me nervous so I moved to Castlemaine. I stayed with Castlemaine until Dec 2015 – I am now LTD again.
August 2015 I receive a letter form HMRC saying: “About the enclosed self-assessment tax return for year ending 5 April 2012”
“We have been in consultation with our colleagues at HMRC Counter Avoidance. We believe that you may have participated in a tax avoidance scheme. You may have received money which was described as a loan or advance on which you have not paid tax. You should consider including these amounts in the return as your income. If you choose not to declare this as income then enter details of the amounts received in the relevant which space box”
This is the point at which I realised things were going to get sticky. I did what many of you have done, I called Bedouin/Redstone and got the bog standard response “we advise you not to declare this as income blah blah…”
Luckily for me I was not officially employed with Bedouin during tax year 2011-12 so my response back to HMRC was clear, there was nothing to declare.
January 2016 – I receive 2 self-assessment requests: (both forms are different not sure if this has any meaning?)
1 - Notice re complete a tax return 2013-2014 from HMRC pay as you go self-assessment BX9 1AS
2 - Notice to complete a tax return 2014-2015 from HMRC Officer in charge BX9 1AS
I have until the end of this month to decide what to do. I have not received any demands, nor an APN – I understand from reading the various threads that Bedouin are non Dotas which means APN’s may not apply. I know I will get no support from Bedouin/Redstone any maybe even Castlemaine (I have just received a note from them staying they will provide an accountant to help with the tax return for the period I operated with them) I still don’t expect this to help – I know this is on me to fix. I have 2 options. Fight or Rollover. I am not well enough informed to know what to do just yet.
To rollover (with reluctance)
1 - I get this over with quickly I hopefully avoid any possible penalties and further interest charges and I get to put this in the past – this situation is not psychological good for me.
2 - Is there anyone out there that has done just this? What was your experience?
3 - Could it be HMRC are just fishing or is this just the start of an investigation, do they already know the answer....?
To fight (which is my instinct)
1 - I have no idea what my rights are and what to do next – I have until the end of this month to submit my SA for the 2 periods being asked. Questions I have are:
2 - What do I put on the forms?
3 - I know someone who is part of BIG Group – this seems to have ‘purchased’ more time from HMRC – is this just delaying the inevitable or do groups such as BIG work?
4 - Do we as contractors in these schemes have a fighting chance as so much of this seems to be in the hands of the courts for cases that are yet to be held and the outcomes understood
5 - If I fight and the courts rule against us surely this would mean HMRC then can grab what they believe to be ‘tax’ plus penalties, plus interest - I assume this would be a number much larger than if I rolled over now?
My position is I need to think carefully but make a decision soon – It will more than likely mean the sale of my home regardless
Any advice from all you good people in similar situations?
OK, my first post in response to this thread......so be kind to me.
I’ve read through lots of the information here from people caught up in schemes now being investigated by HMRC – this is my story, to which I need to make a decision on which way to go, rollover or fight. I’m not an accountant, or tax specialist just one of the many gullible contractors who now needs to fix things and decide my next move.
I operated as LTD until April 2012 – a fellow contractor in the same office suggested I give Bedouin a call – I did just that and had a chat with a chap who suggest he come to my place of work (FTSE top 10 company) to demonstrate the ‘benefits’ of the scheme
The shiny suit (name of Jon Bannister) sold me the story – legal, HMRC compliant, endorsed by XXX etc etc so I signed up in good faith (the mistake)
I stayed with Bedouin/Redstone from April 2012 until March 2015 – they wanted to change names again – this made me nervous so I moved to Castlemaine. I stayed with Castlemaine until Dec 2015 – I am now LTD again.
August 2015 I receive a letter form HMRC saying: “About the enclosed self-assessment tax return for year ending 5 April 2012”
“We have been in consultation with our colleagues at HMRC Counter Avoidance. We believe that you may have participated in a tax avoidance scheme. You may have received money which was described as a loan or advance on which you have not paid tax. You should consider including these amounts in the return as your income. If you choose not to declare this as income then enter details of the amounts received in the relevant which space box”
This is the point at which I realised things were going to get sticky. I did what many of you have done, I called Bedouin/Redstone and got the bog standard response “we advise you not to declare this as income blah blah…”
Luckily for me I was not officially employed with Bedouin during tax year 2011-12 so my response back to HMRC was clear, there was nothing to declare.
January 2016 – I receive 2 self-assessment requests: (both forms are different not sure if this has any meaning?)
1 - Notice re complete a tax return 2013-2014 from HMRC pay as you go self-assessment BX9 1AS
2 - Notice to complete a tax return 2014-2015 from HMRC Officer in charge BX9 1AS
I have until the end of this month to decide what to do. I have not received any demands, nor an APN – I understand from reading the various threads that Bedouin are non Dotas which means APN’s may not apply. I know I will get no support from Bedouin/Redstone any maybe even Castlemaine (I have just received a note from them staying they will provide an accountant to help with the tax return for the period I operated with them) I still don’t expect this to help – I know this is on me to fix. I have 2 options. Fight or Rollover. I am not well enough informed to know what to do just yet.
To rollover (with reluctance)
1 - I get this over with quickly I hopefully avoid any possible penalties and further interest charges and I get to put this in the past – this situation is not psychological good for me.
2 - Is there anyone out there that has done just this? What was your experience?
3 - Could it be HMRC are just fishing or is this just the start of an investigation, do they already know the answer....?
To fight (which is my instinct)
1 - I have no idea what my rights are and what to do next – I have until the end of this month to submit my SA for the 2 periods being asked. Questions I have are:
2 - What do I put on the forms?
3 - I know someone who is part of BIG Group – this seems to have ‘purchased’ more time from HMRC – is this just delaying the inevitable or do groups such as BIG work?
4 - Do we as contractors in these schemes have a fighting chance as so much of this seems to be in the hands of the courts for cases that are yet to be held and the outcomes understood
5 - If I fight and the courts rule against us surely this would mean HMRC then can grab what they believe to be ‘tax’ plus penalties, plus interest - I assume this would be a number much larger than if I rolled over now?
My position is I need to think carefully but make a decision soon – It will more than likely mean the sale of my home regardless
Any advice from all you good people in similar situations?
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