Just a heads up that Money Box (Radio 4) are covering this in the next 1/2 hr.

[Tank]

Just a heads up for those interested. Just for info - I'm not impacted by any of this.

[ladymuck]

BBC Radio 4 - Money Box, Backlog builds ahead of probate changes

About 10 minutes in... this is about the investigations into the loans schemes used to avoid PAYE/NI. The Finance Bill on Monday will give HMRC powers to investigate up to 20 years.

Estimated that about 40,000 contractors will be affected through application of today's tax climate to 20 year old cases...

[eek]

BBC Radio 4 - Money Box, Backlog builds ahead of probate changes

About 10 minutes in... this is about the investigations into the loans schemes used to avoid PAYE/NI. The Finance Bill on Monday will give HMRC powers to investigate up to 20 years.

Estimated that about 40,000 contractors will be affected through application of today's tax climate to 20 year old cases...

[EBTContractor]

This is just what is already known.

[webberg]

BBC Radio 4 - Money Box, Backlog builds ahead of probate changes

About 10 minutes in... this is about the investigations into the loans schemes used to avoid PAYE/NI. The Finance Bill on Monday will give HMRC powers to investigate up to 20 years.

Estimated that about 40,000 contractors will be affected through application of today's tax climate to 20 year old cases...

NO, it's not about investigations at all I'm afraid.

HMRC will on Monday get the power to ASSESS any unpaid disguised remuneration loans.

No investigation. They may ask for information but if that's not forthcoming they will guess the amount to be taxed.

The programme was about the unfairness of HMRC in staying silent for years and then deciding that ALL contractor arrangements are tax avoidance. Promoters, agencies, umbrellas and clients get away with paying NOTHING and individuals pay it all.

That is not fair and that was the point of the Radio 4 show.

[ladymuck]

NO, it's not about investigations at all I'm afraid.

HMRC will on Monday get the power to ASSESS any unpaid disguised remuneration loans.

No investigation. They may ask for information but if that's not forthcoming they will guess the amount to be taxed.

Not the language used from about 13-14 minutes in. I guess your interpretation of the following (quoted verbatim) is different to mine:

"The tax man is usually limited to investigating the last four years, six if there has been careless behaviour. They can only go back further if the avoidance has been deliberate, in other words, fraudulent. That rule is about to be changed to give the tax man the right to go back 20 years in these cases, and that provision will be included in the Finance Bill that's being published on Monday."

I agree that the tone of the piece is the unfairness of investigating such old schemes after such a long period of silence.

[Invisiblehand]

Why would they change the law just to assess as opposed to investigate?

[eek]

Why would they change the law just to assess as opposed to investigate?

To bypass the investigation phase. HMRC want to be able to say you owe us £200,000 unless you proof otherwise rather than having to do the actual leg work and doing the investigation first...

[Invisiblehand]

To bypass the investigation phase. HMRC want to be able to say you owe us £200,000 unless you proof otherwise rather than having to do the actual leg work and doing the investigation first...

So if say you were paid in loans from 2008-2013 they could now write to you and say we believe you were also paid in loans from 2000-2008. Pay X or prove us wrong".

[eek]

So if say you were paid in loans from 2008-2013 they could now write to you and say we believe you were also paid in loans from 2000-2008. Pay X or prove us wrong".

I don't know... I was merely stating why they may want to avoid investigations - the basis for how HMRC make assumptions is not something I want to speculate on...