Loan Charge post on LinkedIn by Webber

[eek]

I think Webber is referring to the loan charge which is only applicable if you haven't declared the use of an Avoidance Scheme and HMRC have an Open enquiry on you and your scheme. He is really talking about how most people don't know about the loan charge itself, which isn't the DR.

What made me look twice was the new determinations may be sent out to unsuspecting contractors, such as suitcase possibly?

I don't think the loan charge required an open enquiry - the whole point was that it worked as a catch all trap..

And it's now coming up to the end of the period during which HMRC can open inquiries for 2018/19 so if you used a scheme, HMRC have identified it and you didn't include the income in you 2018/19 tax return HMRC are now kicking those inquiries off. And there may be just a few of them or there may be a lot - I suspect no-one outside HMRC knows...

[suitcase]

Hi suitcase, have you managed to settle your affairs now with HMRC? Once submitted, assuming you provided details of the loans and paid the loan charge? Would be interested to hear about your experience.

Nowhere closer to a solution, I haven't submitted my self-assessment yet (got until December). I have another issue with 18/19 which is an underpaid tax that was dragging on from previous tax year and HMRC was not able to appropriately collect by adjusting the tax codes until 2020. I'm not sure how that would need to be factored into the self-assessment, so prob gonna ask an accountant to do the return then discuss.
Funny thing is some other colleagues received a similar letter last year stating they need to submit a tax assessment as they were also employed by the same dodgy umbrella, they basically said they had received no disguised remuneration, filled in the return form and that was it, never heard of them since.
I'd have no problem settling for missed tax and NI, I literally only received a couple of thousands as loans before I left the scheme but I reckon the penalty and interest will be more than what I owe now in tax and NI and as I said I was permanent for quite a few years so didn't have to do any self assessment or tax return.

[Jumper]

I am sure that HMRC will undoubtedly open up enquiries on those individuals that have not disclosed and will likely do that 4yrs on as they typically do. Let’s be frank here, if HMRC are aware of an umbrella that has operated a loan scheme they will be aware of ALL the employees so it will only be a matter of time for HMRC to come back and say they were given the opportunity to disclose but didn’t so will likely expect excessive penalties.

[GregRickshaw]

Funny thing is some other colleagues received a similar letter last year stating they need to submit a tax assessment as they were also employed by the same dodgy umbrella, they basically said they had received no disguised remuneration, filled in the return form and that was it, never heard of them since.

HMRC are notorious for the 'never heard back' stuff.

What dodgy umbrella did you and your colleagues use?

[suitcase]

I am sure that HMRC will undoubtedly open up enquiries on those individuals that have not disclosed and will likely do that 4yrs on as they typically do. Let’s be frank here, if HMRC are aware of an umbrella that has operated a loan scheme they will be aware of ALL the employees so it will only be a matter of time for HMRC to come back and say they were given the opportunity to disclose but didn’t so will likely expect excessive penalties.

That's where my mind is too, although it's a bit strange that they were asked for their 17/18 tax return last year and I was asked for 18/19, I know now that the deadline for declaration was the 18/19 tax return.
It also depends on what info they have, said company is under liquidation and the official notes state the accounts are very incomplete. It might just be a matter of time til they find or piece it all together or it might have gone down the shredder ages ago, but it's a risk for sure.
Even I don't have my contract and payslips from them anymore (stupid, I know) and would need to request a paper copy of my bank statements to figure out what I got.

HMRC are notorious for the 'never heard back' stuff.

What dodgy umbrella did you and your colleagues use?

Best Employment Services. Think we all used them for a few months only, I did for 3-4 months, then went to a proper one with good rep and subsequently permanent employment a year or so after.

[eek]

Best Employment Services. Think we all used them for a few months only, I did for 3-4 months, then went to a proper one with good rep and subsequently permanent employment a year or so after.

You are forgetting that agency reporting regulations mean HMRC will know exactly how much was paid by agency x to umbrella y for the work you did....

[DealorNoDeal]

You are forgetting that agency reporting regulations mean HMRC will know exactly how much was paid by agency x to umbrella y for the work you did....

What year did that come in? Any idea what the level of compliance is like? Presumably, agency could be fined for failure to report or incomplete reporting?

[eek]

What year did that come in? Any idea what the level of compliance is like? Presumably, agency could be fined for failure to report or incomplete reporting?

April 6th 2015 from memory Employment intermediaries reporting requirements - GOV.UK (www.gov.uk) doesn't have the actual dates.

[suitcase]

You are forgetting that agency reporting regulations mean HMRC will know exactly how much was paid by agency x to umbrella y for the work you did....

Wasn't aware of that, thanks. As said, even without that I doubt it'd be a good approach betting on them not finding the exact payslips or whatever during investigation/liquidation of the company.

So anyone knows what would be the best approach, send in the self assessment tax return declaring that I did have disguised remuneration and see how that plays out or before submitting that declare separately and directly?
Would an accountant be useful or straight up tax advisor?

[GregRickshaw]

Wasn't aware of that, thanks. As said, even without that I doubt it'd be a good approach betting on them not finding the exact payslips or whatever during investigation/liquidation of the company.

So anyone knows what would be the best approach, send in the self assessment tax return declaring that I did have disguised remuneration and see how that plays out or before submitting that declare separately and directly?
Would an accountant be useful or straight up tax advisor?

Seek professional help as soon as you can.