Need help completing self assessment !

[LondonManc]

Hello LondonManc what I'm suggesting is that the Huitson decision was an opportunity for HMRC to do the following:
Publish it widely (on here for example) - with a warning that any scheme could effectively be shot down retrospectively and ask all promoters to issue a warning to their subscribers. Failing that issue such a warning to all people whom they has an ongoing enquiry against with the taxation equivalent of a diseased lung.


All of which they are discussing now to address a problem that should be small and reducing by the day

Agreed DR re 2008 and Walter J who seemed to be on an HMRC crusade - but the actual case ran mostly out of steam by 2010/11. A lot of people have been told by their promoters that this type of action could not be foreseen - this is clearly not the case at or around the time of Huitson - it was both possible and forseeable. After Huitson there were other cases that made it more possible and more forseeable. However, Huitson being mentioned now with abandon by same promoters.

Ah, so it's HMRC who should be warning contractors/limited company startups about this sort of thing, not the "umbrellas" themselves is what you mean?

It's certainly not fair that the contractor carries all the liability for this (not that I've fallen for it because a seasoned contractor warned me about it back when I started out). I can see how believable it can be and appeals to natural human greed; if you've not got any level of paranoia in you whatsoever then it's an accident waiting to happen.

[MrMarkyMark]

Ah, so it's HMRC who should be warning contractors/limited company startups about this sort of thing, not the "umbrellas" themselves is what you mean?

It's certainly not fair that the contractor carries all the liability for this (not that I've fallen for it because a seasoned contractor warned me about it back when I started out). I can see how believable it can be and appeals to natural human greed; if you've not got any level of paranoia in you whatsoever then it's an accident waiting to happen.

I still had people that ran one of these schemes tell me in all seriousness, face to face, that there was QC approved, so still OK.

They stopped the sales pitch, we were at a family do, when they realised I was a fairly seasoned guy that had seen it all before.

It got better.........they were ex Sunday Solutions employees

[eek]

I still had people that ran one of these schemes tell me in all seriousness, face to face, that there was QC approved, so still OK.

The only questions to ask regarding that is how much was that very liquid lunch and did he manage to keep a straight face throughout?

[eek]

Please use the limited company avoidance method until further notice or an actual umbrella company.

I really wish those people who were scammed by tax avoidance schemes would grasp the fact that provided you jump through the IR35 loops limited companies are valid and above board.

I know you to to internally justify the mess you are in by looking at other options and saying that's a scam, that's a scam but until the public sector changes come in working as a limited company is perfectly legitimate

[Dylan]

I really wish those people who were scammed by tax avoidance schemes would grasp the fact that provided you jump through the IR35 loops limited companies are valid and above board.

I know you to to internally justify the mess you are in by looking at other options and saying that's a scam, that's a scam but until the public sector changes come in working as a limited company is perfectly legitimate

He didn't say it wasn't legitimate, but certainly before the dividend tax changes it was definitely a way of avoiding tax.

[cojak]

I know you to to internally justify the mess you are in by looking at other options and saying that's a scam, that's a scam but until the public sector changes come in working as a limited company is perfectly legitimate

And will be in the private sector even after the public sector changes come in, until the private sector gets pressurized into the same changes.

[LondonManc]

I really wish those people who were scammed by tax avoidance schemes would grasp the fact that provided you jump through the IR35 loops limited companies are valid and above board.

I know you to to internally justify the mess you are in by looking at other options and saying that's a scam, that's a scam but until the public sector changes come in working as a limited company is perfectly legitimate

The fact that these things are called schemes should give them away, surely?

[eek]

He didn't say it wasn't legitimate, but certainly before the dividend tax changes it was definitely a way of avoiding tax.

Can I work as a self employed person?

If not how else do I work for myself in such I way that the money is always under my control....

It's really worth continually repeating myself but we use Limited Companies not to avoid tax but because various laws were created in the mid 1970's that left us with no choice but to form a limited company if we wanted to get work via agencies.... The fact a company can be used to avoid tax is a product of tax changes that occurred afterwards...