Self assessment query section 9a

[Diamond1]

Good morning

Was wondering if I could get some guidance / advice.

I have received section 9 self assessment return check. This is for a period when I was part of a what I thought was a bog standard umbrella company.

Brief lowdown:

This company changed names midway and I was with them for approx 2.5 years.

Payment in 2 blocks;
Salary and Loan

They are querying the method of payment and to confirm if my loan payment is actually a loan that it is,or a salary. Information I am being asked to present is pretty intensive.

I have read that a "loan charge" will come into effect in 2019.

What are my next steps with this? I will look at getting specialist advice, can anyone point me in the right direction?

[WalterWhite]

Good morning

Was wondering if I could get some guidance / advice.

I have received section 9 self assessment return check. This is for a period when I was part of a what I thought was a bog standard umbrella company.

Brief lowdown:

This company changed names midway and I was with them for approx 2.5 years.

Payment in 2 blocks;
Salary and Loan

They are querying the method of payment and to confirm if my loan payment is actually a loan that it is,or a salary. Information I am being asked to present is pretty intensive.

I have read that a "loan charge" will come into effect in 2019.

What are my next steps with this? I will look at getting specialist advice, can anyone point me in the right direction?

Are they still around? Have you contacted them?

If they aren't then contact Big Group

I would also stop referring to your loan as 'payment', HMRC read these forums

[Diamond1]

Thank you for your reply.

Company is still active, yes. I am due a call from them shortly to discuss.

[BrilloPad]

Are they still around? Have you contacted them?

If they aren't then contact Big Group

I would also stop referring to your loan as 'payment', HMRC read these forums

Another alternative to BG is to wait until HMRC send you a bill then pay up.

[BrilloPad]

Thank you for your reply.

Company is still active, yes. I am due a call from them shortly to discuss.

Please let us know what they say.

Have you considered the possibility the loan might be called in?

[Diamond1]

I am a little confused here.

If the loan is called (I will not be able to afford to pay it anyway) then will I be able to then get the umbrella company to pay me (question of if/will they is another topic) deducting the tax and NI which will be owed?

How are these companies still operating?!

[webberg]

I am a little confused here.

If the loan is called (I will not be able to afford to pay it anyway) then will I be able to then get the umbrella company to pay me (question of if/will they is another topic) deducting the tax and NI which will be owed?

Many arrangements (perhaps yours) worked as follows.

Client pays agency.
Agency pays umbrella.
Umbrella pays you minimum wage.
Umbrella makes a contribution to a trust or offshore party.
Trust/offshore party make a loan to you.

So if you repay the loan, it will be to the lender who may be offshore and who may or may not be a trust.

Should it be a trust and they make a distribution to you, it may be taxable.

This is all detailed in the threads here and I think you should spend an hour or so bringing yourself up to speed.

[BrilloPad]

How are these companies still operating?!

I reported one recently to HMRC. No feedback from them.

They should be closing them down far sooner.

[webberg]

I reported one recently to HMRC. No feedback from them.

They should be closing them down far sooner.

There are no rules permitting HMRC to intervene.

They (HMRC) claim that they have had a "success" by reporting one firm to the Advertising Standards Agency. A story on this was reported in the news section on this website.

I'm not sure what was achieved because HMRC's logo still appears on the website of the firm singled out and I can see little in the way of changes.

[DotasScandal]

How are these companies still operating?!

https://www.dotas-scandal.org/top-10...dance-schemes/