Disguised remuneration / loan charge

[eek]

Just wanting to make sure if the same calculation would apply if I was trying to estimate my liability from using one of thes dodgy umbrella companies. So far I have made provision for tax, employees NI but not employers NI. If HMRC transfer the liability to me will I be liable for all three?

HMRC will look at what the agency reported the scheme received and will calculate what is owed including Employer NI and then ask you to pay it...

In theory they could seek the employer NI from the agency but the reality is that they have only just started at looking at that and currently they are focussed on recovering the lost VAT that way....

[woody1]

I seem to recall that NI was only payable with self-employed schemes (class 4?).

Where scheme members were employees, receiving a small salary under PAYE and loans, then settlement was only tax (+ late payment interest). IE. no employee or employer NICs.

However, I don't know if "dodgy umbrellas" are treated differently to schemes.

[bylren001]

I have just had clarity on Employers' NICs and the transfer of liability from HMRC: 2. If HMRC transfers any liability to the employee, then both tax and primary Class 1 NICs will usually be collected from the employee. Secondary Class 1 NICs (traditionally paid by the employer) will not be transferred.

[woody1]

I have just had clarity on Employers' NICs and the transfer of liability from HMRC: 2. If HMRC transfers any liability to the employee, then both tax and primary Class 1 NICs will usually be collected from the employee. Secondary Class 1 NICs (traditionally paid by the employer) will not be transferred.

They may not transfer primary NICs either. They didn't in the case of loan and other DR schemes.

Probably the only way to know for sure would be to request a settlement calculation. This should also tell you how much interest is due.