Another Consulting Overseas Victim?

[PAH]

This is interesting from their website:
"Our solutions for IT contractors are fully approved and insured by Qdos Consulting. The insurance provides you with full protection against an Inland Revenue status investigation, including IR35, not only for your professional fees but also any legal fees that maybe incurred upto £50,000. Find out more about Qdos approval and insurance."

There's a user called Qdos Consulting, who also happens to be online at the moment according to the Active Users list.

[Lewis]

This is interesting from their website:
"Our solutions for IT contractors are fully approved and insured by Qdos Consulting. The insurance provides you with full protection against an Inland Revenue status investigation, including IR35, not only for your professional fees but also any legal fees that maybe incurred upto £50,000. Find out more about Qdos approval and insurance."

What's the website? I assume this refers to their current offering and not their old scheme which involved foreign currency loans and FX forwards (a collegue was on it and got HMRC challenged hence my awareness of the problems with this scheme).

[Wilmslow]

I contracted through this lot between 2003-4 and since then have been out of the UK.

Just received a Notice of Further assessment from HMRC "Special Civil Investigations" department for approx 20K for the year to April 2004

Interest is also payable (although not detailed) from Jan 05 and a "surcharge" may also be payable.

I tried to telephone/email Consulting Overseas but the phone goes to voicemail and the emails bounced.

So ..... anyone know anything?

When I signed up they said the scheme was watertight .. had been approved by their tax lawyers etc.. etc.. Obviously not!

Will now be on the hunt for an accountant/lawyer I guess (any recommendations?) but wondered if anyone had any advice or news?

Anything much appreciated.

Emigrate, then get a nice safe Permie role.

HTH

[Fred Bloggs]

I've just looked at-

http://www.consultingoverseas.com

Surely they must be operating as brolly, so why do they need QDOS cover? Am I missing something here?

[Bumfluff]

They did the loan scheme if I remeber then changed to standard MSC around 2003-2004 time.
Question for the orginal poster which scheme were you on at the time the HMRC are looking at loans or there MSC offering ?

[Bert]

thanks

The current OC website is dud. I'm sure the same individuals have just renamed and setup under a different name.

I was on the Sandfield loan scheme which converted towards the end of 2003 to dividend.

I am resident overseas now but assume emigration is not a long term solution! Have been worrying about it for years.

It would be good to hear from someone in same situation. Also if anyone can recommend some good prof advice. Not sure if these guys act on a "no win no fee" basis?

I do remember discussion about an insurance policy but wouldn't bet that I'm still covered.

[dude69]

How did this scheme operate?

Is it the loan scheme where they supposedly loan you money and then never pay it back, and then take massive fees to cover it?

Are others still operating the same thing that they used to?

[Lewis]

How did this scheme operate?

Is it the loan scheme where they supposedly loan you money and then never pay it back, and then take massive fees to cover it?

Are others still operating the same thing that they used to?

The one I am aware of involved being loaned money in a foreign currency and the purchase of an FX forward to pay off the loan in a year or so. The currency would be rapidly devaluing, e.g. ZWD. The FX forward would be cheap. Meaning contractor has almost all the money guaranteed there are then (not sure what they did with interest, maybe that was also factored into FX Forward). It had a very high return (>85% I think). I know an ex-collegue on it who got challenged but had moved to Oz. Bert, you're not my old collegue are you?

I'm surprised CO are doing nothing. Last I heard a few years back from collegue was that CO were advising everyone to stick together so I assumed they were planning to defend the scheme. They did have all the tax council stuff saying it was ok I think. Just goes to show with these schemes, they are happy to take your money but won't help when the sh*t hits the fan!

[Bert]

Thanks Lewis - no, I'm in Hong Kong, not Oz! Sounds like exactly the scheme I was on though.

Have contacted Accountax to see what they can do. Not sure how they operate though. Do I pay 500 quid for them to review my case and then tell me to "bend over" ... as someone put so eloquently above?

Also surprised that Consulting Overseas are being elusive. They sent me a letter a couple of years back warning that others had received letters and did seem to be planning to fight but I'm not sure whether they won, lost or just went bust.

I know HMRC operate on a "divide and conquer" basis so am really hoping for someone else who's been here and come out the other end.

[ChimpMaster]

Shame how, 4 years later, when you might have even forgotten about this, HMRC pull out a blinder like that.

I guess they invesigated CO first, and then managed to obtain a list of all its contractors to target.

I remember back then that there were a number of firms providing the loan/fx scheme, but it seems like they all disappeared quite rapidly.

Good luck - do let us know how you get on.