A question about recovery of money

[cojak]

Anandb has asked:

Ok.. Loan charge was made illegal in 2017.
But most of the users were defrauded by AML and Vanquish and SP management and what not.
How contractors are going to recover the money from them?
Any ideas?
Is anyone who is stung by loan charge planning class action like suit against AML etc?

[cojak]

It is a close to zero probability that anyone will be able to claim any money back from scheme owners because they were very careful to make those schemes safe from that kind of litigation.

Contractors have attempted to join class action in an to attempt to fight HMRC, but generally they have simply thrown good money after bad (search ‘class action’ in this forum).

The only thing that appears to work is to get a reputable tax specialist to negotiate with HMRC the sums involved and the best way to pay.

[woody1]

Exactly what cojak says.

Forget going after scheme operators. Forget fighting HMRC.

Accept that you'll have to pay. Arrange a payment plan* (time to pay) if you need to. Move on with your life.

* there's usually no problem getting HMRC to agree to a few years to pay but they have been known to allow over 10 years

[cojak]

Quackhandle had a question:

Okay dumb question alert, but why doesn't HMRC go after the owners of these companies?

qh

to which I replied:

I guess that according to current legislation they’ve done nothing illegal, the onus is on contractors to get this stuff right.

The salesmen and agencies who knowingly push contractors into these schemes for a fat commission should be the easiest targets for fines and sanctions IMO.

[woody1]

Judging by the number of new schemes that keep popping up, it seems HMRC are still not on top of this problem after 20-odd years.

[cojak]

Judging by the number of new schemes that keep popping up, it seems HMRC are still not on top of this problem after 20-odd years.

Yep, I don't see any downturn on it.

[woody1]

And the thing is, the disguised remuneration legislation HMRC brought in, at the same time as the Loan Charge, is all encompassing. It's therefore difficult to see how the schemes now aren't anything other than outright evasion. And yet, all HMRC seems to be able to do is publish their names. Pathetic!

[cojak]

And even then they only put those names up for one year before taking them off the list. You’ve just got to hope that contractors Google the names before signing up.

[anandb]

Humm
There is no way as a common man can challenge this to HMRC?
local MPs are mostly useless so no point in talking to them.
HMRC wont buzz on their stand.
The internet on the original sum is almost 50%.

So the moral of the story is - do the scam by the books. HMRC wont do that tang to you.. Is that what looks like it.

[anandb]

Humm
There is no way as a common man can challenge this to HMRC?
local MPs are mostly useless so no point in talking to them.
HMRC wont buzz on their stand.
The interest on the original sum is almost 50%.
It is frustrating.. there is no process.. only choice is to hire expensive solicitor to fight the case.

So the moral of the story is - do the scam by the books. HMRC wont do that tang to you.. Is that what looks like it.