Tax Schemes - Agencies being hit

[webberg]

The drain of contractor talent will accelerate if the April 2019 charge arrives as advertised.

Whilst HMRC think that they will be able to issue assessments to non resident people who have not repaid loans by the above date.

Such extension of UK tax territory is likely to be poorly received by non UK jurisdictions?

[eek]

The drain of contractor talent will accelerate if the April 2019 charge arrives as advertised.

Whilst HMRC think that they will be able to issue assessments to non resident people who have not repaid loans by the above date.

Such extension of UK tax territory is likely to be poorly received by non UK jurisdictions?

Well they will be able to issue assessments... They just won't be able to enforce payment assuming people don't have assets in the UK...

[AtW]

They just won't be able to enforce payment assuming people don't have assets in the UK...

1. Get UK court order for the debt.

2. Use international agreements on enforcement of debt court orders.

[QCApproved]

I'm not sure what international agreements are that would allow this and whether it can agreed that these are debts
The American embassy owes millions in unpaid congestion charges according to the Mayor of London however they define it as a local tax to which they are exempt.

Most of the contractors I knew of were foreigners - I think huge sums will not be recovered. No one I spoke with this morning intends to pay until their local authorities approach them. We wish them well but again it does not reflect well on HMRC that they appear to be struggling to enforce their policy

[DotasScandal]

again it does not reflect well on HMRC that they appear to be struggling to enforce their policy

With all the public money they throw at expensive behavioural psycholgy "experts" (hello Behavioural Insight Ltd. ) you'd think they'd have gained some basic understanding by now and adopted a course of action a tad more sophisticated than "harrass, threaten, bully, and hope that they fold"
Alas, there seem to be many people at HMRC that simply can never learn.

[QCApproved]

yep the Psy ops mean who stare at goats crew its good you remind us of them their directors names should be more high profile given the insidious way in which they make a living.
Hopefully the aussies and kiwis will pick up on that too if they are asked to pursue.

[AtW]

I'm not sure what international agreements are that would allow this and whether it can agreed that these are debts

For example: https://e-justice.europa.eu/content_...gment-52-en.do

EU is easy, used it once.

Australia -

Enforcing UK judgments in Australia - International Law - Australia

"Australia and the United Kingdom have a reciprocal arrangement for the enforcement of judgments. Consequently, money judgments of most UK courts, which satisfy certain criteria, may be enforced in Australia by registration under the Act."

USA might be more difficult, but then again IRS might also take a dim view of people getting loans instead of salary and dodgy not only UK taxes but also US ones.

So enforcing is very much possible, especially for somebody like HMRC who got unlimited resources and could do it to make a point for others.

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In regards to this 2019 charge the question is whether UK is actually able to tax people who are no longer tax resident in UK even though those loans appeared at the time when the person was tax resident, I am not a lawyer but if I had to guess that would be very hard if possible at all.

The American embassy owes millions in unpaid congestion charges according to the Mayor of London however they define it as a local tax to which they are exempt.

They've got diplomatic immunity and convention protects them from local taxes, so obviously their courts won't allow any UK court judgements to override that.

[JaredM]

Sounds to me like HMarse are reacting to the IR35 consultation results:

1. Hit some big end-users with PAYE penalties => "Oh this wouldn't happen if you'd used our wonderfully clear digital tool that'll tell you who to run PAYE for (hint: everyone)."
2. Threaten agencies with the same => "Oh you still want to use PSCs and Umbrellas do you?'

Create enough legal uncertainty and hey presto: it just won't be worth the 'risk' of using contractors anymore. Funny how that works.

[BrilloPad]

Amazing anyone still using anything other than Limited or Umbrella.

[webberg]

There is an inevitable element of mud slinging here.

HMRC is trying to hit everybody who might be connected with the mess they have been instrumental in creating because sooner or later some media wannabe on PAC is going to twig that he/she might get a few more votes if they show that HMRC are inefficient/incompetent/not fit for purpose. When that accusation comes they want to show that they have covered all bases.

For periods beyond the reach of retrospective determinations, the easiest target remains individuals.