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s223 - £190,000 charge ON TOP OF my settlement

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    s223 - £190,000 charge ON TOP OF my settlement

    I've searched the forum and can see no mention of s223. Does this not affect contractor schemes?

    Just over 10 years ago I gave up contracting and started an Internet business which did really well for a few years and then income dropped back to normal levels. As I was holding a lot of cash my accountant convinced me to sign up to a scheme where I could take a £500k loan from an EBT.

    The company that set this up shut down a few years later so I joined an group action. When the Rangers verdict came in my tax defence advised settling and I paid my APN's a few years ago. I paid about £270k which included around £30k in interest, £4k in court costs and a £10k inheritance tax charge. I'd kept this money in a safe zero interest account for all that time, just in case.

    This year I thought it would all be over with and I could move on, but now they're saying they want an EXTRA £190k for s223. This will be the final straw and will almost certainly wipe me out, forcing me to close my business and sell my house to pay the rest of the debt.

    HMRC asking for £460k tax on £500k of 'income' is just vindictive. It seems to me that they are now using loopholes to try and recover as much tax as possible rather than what is reasonably due. eg. IHT imo is just a case of them having their cake and eating it!

    Does anyone know of a group that's fighting s223 on EBT's? My tax advisers are having trouble getting enough people to join a group action.

    #2
    WTF! Sorry to hear that. I've not heard of s223 mentioned before on any of the EBT forums I read. I Googled and it seems to be a tax that can only be applied to Directors; do you know on what grounds they are claiming this extra tax is due? Probably most of the contractor crowd wouldn't have been directors.

    Comment


      #3
      It's something to do with the company having paid the director's tax bill.

      In one of the HMRC communications they said something like - The tax scheme you've entered into has resulted in double taxation, or words to that affect.

      Comment


        #4
        Who ran the scheme you used?

        Comment


          #5
          Originally posted by Invisiblehand View Post
          Who ran the scheme you used?
          Premier Strategies/Tenon

          Comment


            #6
            Oh Dear...
            https://www.contractoruk.com/forums/...ighlight=tenon
            "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
            - Voltaire/Benjamin Franklin/Anne Frank...

            Comment


              #7
              Yep, Premier & Tenon got out of the game years ago.

              Premier took my £65k in fees with them when they dissolved. I was told that most of that money was set aside for their fighting fund. They decided not to fight and just pocket the money.

              Comment


                #8
                WTF?????????????

                Originally posted by Ex Contractor View Post
                I've searched the forum and can see no mention of s223. Does this not affect contractor schemes?

                Just over 10 years ago I gave up contracting and started an Internet business which did really well for a few years and then income dropped back to normal levels. As I was holding a lot of cash my accountant convinced me to sign up to a scheme where I could take a £500k loan from an EBT.

                The company that set this up shut down a few years later so I joined an group action. When the Rangers verdict came in my tax defence advised settling and I paid my APN's a few years ago. I paid about £270k which included around £30k in interest, £4k in court costs and a £10k inheritance tax charge. I'd kept this money in a safe zero interest account for all that time, just in case.

                This year I thought it would all be over with and I could move on, but now they're saying they want an EXTRA £190k for s223. This will be the final straw and will almost certainly wipe me out, forcing me to close my business and sell my house to pay the rest of the debt.

                HMRC asking for £460k tax on £500k of 'income' is just vindictive. It seems to me that they are now using loopholes to try and recover as much tax as possible rather than what is reasonably due. eg. IHT imo is just a case of them having their cake and eating it!

                Does anyone know of a group that's fighting s223 on EBT's? My tax advisers are having trouble getting enough people to join a group action.
                Gob smaked!

                Comment


                  #9
                  There are people that were setup as LTD but still using schemes etc. So there is a personal liability as well as the ‘companys’. So a SA will be redone to calculate personal tax plus the company would also be liable for ni’s ( as HMRC put it ‘your making good’ the company liability as you are director).

                  Comment


                    #10
                    Has anybody mentioned Chilcott to you?

                    Broadly where a law produces an absurd or unintended result, a Judge may be able to mitigate it.

                    You need to get advice.
                    Best Forum Adviser & Forum Personality of the Year 2018.

                    (No, me neither).

                    Comment

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