Letter from HMRC regarding possible involvement in Tax avoidance

[Fred Bloggs]

My point was that back in March beyond the "broker" there was little to say that "Turnkey" was dodgy

And while we know in detail how umbrella firms work we cannot assume other people know what to watch out for.

After your edit - OP says he knew about dodgy schemes. So he sensibly chose PAYE. Where he went a bit awry, was not scratching a bit deeper below the surface veneer. Of little consequence now. OP made a sensible decision and I recommend he draws a line under this and moves on.

[Fred Bloggs]

My point was that back in March beyond the "broker" there was little to say that "Turnkey" was dodgy

Neither of us have the slightest idea. Here, I would tend to think along the lines of most probable explanation.

An apparently successful business offering PAYE from 2018 has no incentive to go dodgy and eventually trash it's reputation. A PAYE employment business cannot afford to pay a broker (a scheme promoter) commission.

On the otherhand, a dodgy brolly offering "solutions" from 2018 has every incentive to pay brokers/promoters and to offer some PAYE payroll if someone asks for it.

Balance of probabilities? In my opinion, you were on the money with your option 2. OP has had a very lucky close encounter that could have bitten him very hard if he had been a bit greedier/naive than he was.

[eek]

My point was that back in March beyond the "broker" there was little to say that "Turnkey" was dodgy

And while we know in detail how umbrella firms work we cannot assume other people know what to watch out for.

[Fred Bloggs]

I'm not so sure - the application to strike off the second company was made at the end of April (and refused in June) while the OP was looking at this back in March.

I suspect back in March anywhere that would raise alarm bells.

I don't think I am agreeing with you here.

Subject brolly was incorporated in October 2018. OP was offered a standard PAYE employment deal or a scheme earlier this year. He wisely chose PAYE. OP mentions a "broker". A "broker" being involved in this smells to high heaven. "Brokers" promote schemes, there is no business in promoting just PAYE. OP was very lucky this promoter/broker actually offered PAYE at all.

Likely that many users routed through this "broker" will have chosen the scheme over PAYE. Hence, HMRC are thinking that everyone employed with the subject brolly is a scheme user.

Makes perfect sense to me. Again, well done to the OP who was sensible is his choice. But now, I would draw a line under this by quitting this brolly and starting with a new, fully compliant non-scheme associated brolly on Monday. With a line drawn under this and a P45 to show Hector, the OP might just be home and dry if he does as I suggest?

[eek]

It looks absolutely like option 2. The OP was offered a "solution" but wisely rejected it. At this point I would advise the OP to immediately change brollies to one with no possible connection to a possible scheme provider. If only to draw a line under this. OP seems to be pretty sensible. But it seems very careful due diligence might have rung alarm bells about subject brolly.

I'm not so sure - the application to strike off the second company was made at the end of April (and refused in June) while the OP was looking at this back in March.

I suspect back in March anywhere that would raise alarm bells.

[jimmy899]

I will keep you updated when I hear more.

[cojak]

Thanks Jimmy. Please keep us updated on this, it would be good to know which way this turns out.

[jimmy899]

Dear all, thank you for all the advice and input. I have rung the general HMRC number and they took down all information on the letter. They did not say if it was legit or not, but they said someone would ring back by the end of the month when they do checks.

[LondonManc]

It looks absolutely like option 2. The OP was offered a "solution" but wisely rejected it. At this point I would advise the OP to immediately change brollies to one with no possible connection to a possible scheme provider. If only to draw a line under this. OP seems to be pretty sensible. But it seems very careful due diligence might have rung alarm bells about subject brolly.

This looks the likely thing to me - HMRC are (assuming it's not a phishing exercise) sending out letters to all Turnkey clients, presumably based on getting wind of the enhanced scheme.

However, the number in the letter is linked to scams - https://who-called.co.uk/Number/03002009423 - unless they have simply spoofed it.

Potential option is for the OP to ring the general HMRC number - 0300 200 3300 - and say that they've received a letter and are concerned that it's a scam having searched the number listed. Then, they can take it from there. It's either phishing or option 2 above I reckon.

[krytonsheep]

I have gotten the HMRC letter

Be interesting to know what that letter says verbatim?