HMRC Scheme Enquiries: Network One

[GemmaC]

A lot of scheme providers have vanished into thin air but that hasn't stopped HMRC from chasing us. How are you going to prove you paid them back then?
I suggest you get advice. Lie to HMRC and it will make things worse.

Technically the loans _were_ paid back. They were paid back via various share scheme vehicles which generated a profit that was a) either taxed at a very low rate or b) free of tax given the country in which the profit was generated. Or something to that effect. But they were actually paid back.

Stating that all loans were paid back at the end of employment is not lying. And in fact, this formed part of the response provided by Network One to my 2013-14 inquiry. You do not have to go into details as to how they were paid back.

Network One got back to me pretty swiftly asking to see a copy of the letter so they could form a response.

My feeling is this; Network One MUST have anticipated this. You can't operate a scheme such as this and hope that HMRC just don't bother investigated. Ever. They invested 100's of thousands into obtaining legal counsel from tax advisers and QCs when drawing up the original scheme. So if at the point when the investigation comes they have no decent response then, well, that would be pretty upsetting.

[sebobill]

Why is NW1 not taking any responsibility?

The way the law around this works makes it a breeding ground for companies like NW1 to rip off contractors and it is not fair. HMRC should be setting their dogs on the employer and getting them to collect the money from their employers or pay it themselves. If this was the way it was set up, they would make sure their services were secure or at least covered by insurance

[Iter]

Emi scheme!

I too started with net one (quantum), in March 2011 and have received letter, during this tax year the umbrella operated an EMI share scheme which was a hmrc scheme! This is completely legal and backed by hmrc as its there own 'product'

Hi folks

I stumbled on this forum when I was looking on the internet in a state of panic

I hope this is the correct place for this.

I have also received an income tax assessment for 2011 - 2012. I was contracting under a company called Network One.

I was wondering if anyone else here used Network One and if they had received any information from them? I have been trying for two days and can't get a response to any e-mails or telephone calls.

I have two weeks to respond to HMRC and have no idea what to do.

Thanks.

[Vic2011]

HMRC letter: Network One

Hi,

I have also received the brown envelope from HMRC.
They say that I owe unpaid tax for year 2011-2012.

I guess there must be others having the same problem.
I have written to Network One and am waiting to hear from them.

Please let's help each other by sharing any info or updates.
We are all facing the same problem.

Any help will be apreciated.

Thanks

[Fred Bloggs]

Its totally unregulated and a terrible legacy of the past decade that government have been inactive in getting at the providers. The likes of AML are still operating so for how long after yesterdays budget?

Even though some of us took professional advice from Accountants, we didn't know they were getting kick backs from the scheme providers.

The end users are easy victims for HMRC.

I can understand AML still operating, they're offshore and outside UK jurisdiction. They seem like a very big outfit with lots of interests all registered at the same IoM address. AML being still around might just benefit some of their users fighting the HMRC attacks? On the other hand, Network One are based in Teesside up in the North East.

[Fred Bloggs]

It's even worse than that: many Ltd contractors were scared into dissolving their company and moving onto a "scheme" BY THEIR OWN ACCOUNTANTS. It is easy to judge events of 2005 with the eyes and knowledge of 2016, but the reality is that in these days, IR35 created a panic that made thousands run into these structures in search of safety. No one is more to blame for the success of the "schemes" than HMRC themselves.

yes, I'm aware of that. I started contracting shortly after IR35. I recall Brookson aggressively promoting their "IR35 fighting fund" when pushing their composite companies. Largely single handedly bringing about the MSC legislation into existence. The torrent of attacks hasn't diminished at all since. But I believe it wrong that scheme promoters can promote themselves as brolly companies. Something needs doing.

[DotasScandal]

Being a nosey so and so, I have had a look at this companies website. I have to say, it all looks very plausible and there is no hint of any tax avoidance going on, at least not to a casual perusal. There is a brief mention of Jimmy Carr saying what he did was all legal and casts him as a kind of unknowing victim. It all looks very above board and could easily be taken as a bona fide brolly outfit. I think this kind of thing needs to be clamped down on instead of persecuting just the users.

It's even worse than that: many Ltd contractors were scared into dissolving their company and moving onto a "scheme" BY THEIR OWN ACCOUNTANTS. It is easy to judge events of 2005 with the eyes and knowledge of 2016, but the reality is that in these days, IR35 created a panic that made thousands run into these structures in search of safety. No one is more to blame for the success of the "schemes" than HMRC themselves.

[LandRover]

Being a nosey so and so, I have had a look at this companies website. I have to say, it all looks very plausible and there is no hint of any tax avoidance going on, at least not to a casual perusal. There is a brief mention of Jimmy Carr saying what he did was all legal and casts him as a kind of unknowing victim. It all looks very above board and could easily be taken as a bona fide brolly outfit. I think this kind of thing needs to be clamped down on instead of persecuting just the users.

Its totally unregulated and a terrible legacy of the past decade that government have been inactive in getting at the providers. The likes of AML are still operating so for how long after yesterdays budget?

Even though some of us took professional advice from Accountants, we didn't know they were getting kick backs from the scheme providers.

The end users are easy victims for HMRC.

[Fred Bloggs]

Being a nosey so and so, I have had a look at this companies website. I have to say, it all looks very plausible and there is no hint of any tax avoidance going on, at least not to a casual perusal. There is a brief mention of Jimmy Carr saying what he did was all legal and casts him as a kind of unknowing victim. It all looks very above board and could easily be taken as a bona fide brolly outfit. I think this kind of thing needs to be clamped down on instead of persecuting just the users.

[thelittleguy]

do not miss the 30 day deadline waiting for network one

My accountant is on the case with the appeal letter, have also just applied to join Big Group