Hmrc disguised remuneration loans information required!

[GregRickshaw]

Hi guys many thanks for all your support. I have more questions that I am currently summing up. I will disclose the name in the next few days, as I have sent the bumbrella in question an email and the other guy I work with will send them an email tonight asking if they can shed some light but we doubt we are going to get anything positive. The other guys in my team, are with different umbrella's but they are all based on the same exact strategy and the other 16 have now shut me out completly. One of them even tried to accuse me of "grassing" them up with hmrc. They are now all paranoid but rather than deal with the issue, its now come to finding the "grass". I have told them that based on what I know, hmrc must have been aware and it was only a mtter of time, but clearly there is now a "hunt for the grass". The umbrella companies are still lying to the lot that it is all ok and now they are turing on me lol.

Did you, or whoever does your SATR put the umbrella and scheme in the DOTAS?

[taxed]

Did you, or whoever does your SATR put the umbrella and scheme in the DOTAS?

Had no idea what dotas means, had to google this information first. I am not aware of anyone of us having done so. I suppose they now suspect me as I left the scheme out of my own will when I was offered a permanant post by the company employing us. I was also going through some medical issues so it was in my interest to get a permanat job, but this was way back in July last year. Can see why they would suspsct me, but I would never di this as I was also of the opinin that the whole scheme was genuine!

[GregRickshaw]

Had no idea what dotas means, had to google this information first. I am not aware of anyone of us having done so. I suppose they now suspect me as I left the scheme out of my own will when I was offered a permanant post by the company employing us. I was also going through some medical issues so it was in my interest to get a permanat job, but this was way back in July last year. Can see why they would suspsct me, but I would never di this as I was also of the opinin that the whole scheme was genuine!

The reason I ask is; if you declared the scheme then there are a few 'benefits'

One HMRC are likely to allow you to have the bill spread over three years, you can get a longer TTP too but the key thing is declaring the scheme, even the dodgy schemes I was in declared they were TAS on my SATR, which ultimately saved me from the loan charge but not the DR (disguised renumeration) pay back.

Also (if you had declared) the loans amounts are not subject to the Loan Charge (high rate of tax), if you made reasonable disclosure.

The Loan charge is all about charging you high rate of tax on the disguised renumeration AND the loan amounts also it's pretty draconian in the deadline top. I think 90 days to pay in full.

Get help as soon as you can, I believe you may be able to claim a late election, the deadline though for the loan charge was way back in 2020, this is what surprised so much to find out these schemes are still alive and kicking.

[DealorNoDeal]

There would almost certainly be something on your tax returns which would give the game away to HMRC eg. name of the employer. Also, the tiny salary would be a dead give away. The people you worked with are naive if they think the only way HMRC would find out is if someone blew the whistle on it.

HMRC have seen enough of these scams over the past 20 years that they know exactly what to look for.

[cojak]

Would you be prepared to tell me which umbrella - by private message if you'd prefer.

taxed, the Mods can vouch for Chris - otherwise be careful who you talk to on PMs.

[cojak]

One of them even tried to accuse me of "grassing" them up with hmrc. They are now all paranoid but rather than deal with the issue, its now come to finding the "grass". I have told them that based on what I know, hmrc must have been aware and it was only a mtter of time, but clearly there is now a "hunt for the grass". The umbrella companies are still lying to the lot that it is all ok and now they are turing on me lol.

These eejits didn’t contact you in December - March - you were the last to know.

But they’ll try to blame anyone but themselves, so make sure that you keep any correspondence between you and them - you may need it as evidence if things go further south…

[DealorNoDeal]

Get help as soon as you can, I believe you may be able to claim a late election, the deadline though for the loan charge was way back in 2020, this is what surprised so much to find out these schemes are still alive and kicking.

I suspect the providers of these current schemes have designed them to fall outside the scope of the Loan Charge, although whether they've succeeded or not is another matter. It's also hard to see how any payment mechanism these days can get past the beefed up DR legislation.

[taxed]

Hi all it's been a crazy day. Dealing with hostile and somewhat in denial adults, blaming me for tax issues thinking this will go away! So wanted to share more info with regards to the letter I got. The letter does talk about disguised remuneration but there is also a part which states :
To help with the check, they need information and documentation about my finances, payslips, bank statements etc and they will decide whether or not there is more tax to pay and how much. If there is more tax to pay they would then send me a tax assessment, to makesure I pay the right amount of money.

First question if I may please. The tone of the letter having read it again now, looks friendly and it does not appear they're threatening me with fines etc, as long as I send the info to them by 10th July. Should I feel more optimistic with the tone of the letter as detailed above? Or they're just trying to pull me in gently?.

Second. The letter also specifically only talks about the tax year 6th April 2018 to 2019 which again I find odd considering I started the scheme in January 2017 and ended in July 2021, but I suspect they will eventually come to this period. Why would they only ask for the period in between and yet they must have information that this same umbrella employed me for the previous year as well? If I only provide what they are asking for, would they likely blame me if they come back a few months later and ask me why I didn't tell them about the other years?

Lastly if I was being paid say £1350 a week. How much tax was I supposed to pay please see weekly? as have used too many calculaters now feel like losing my head.

Again thanks very much for the helpful support and not judging me for my ignorance. This forum has been the difference between doom and light for me, even though I know this is only the beginning of my struggle. I really appreciate.

[eek]

These eejits didn’t contact you in December - March - you were the last to know.

But they’ll try to blame anyone but themselves, so make sure that you keep any correspondence between you and them - you may need it as evidence if things go further south…

On the other hand because HMRC failed to send a letter before April it’s possible that everything in the 2017/18 tax year is now out of scope..

[DealorNoDeal]

On the other hand because HMRC failed to send a letter before April it’s possible that everything in the 2017/18 tax year is now out of scope..

That's probably why they're only asking for information about 2018/19, because the clock is ticking to raise an assessment for this year before next April.