HMRC Enquiry letters on Loans from EBT and other schemes

[LandRover]

That was also my impression, until I read this thread

https://forums.contractoruk.com/hmrc...pay-apn-3.html

In particular this link

https://www.samconveyancing.co.uk/ne...-bankrupt-4386

That is concerning divorce and that comes under different legal jurisdiction.

I have never read anywhere that when a person goes bankrupt that the Insolvency Practitioner has claimed anything but the bankrupts beneficial interest. Whether that tenants in common or Joint tenancy.

https://www.citizensadvice.org.uk/de.../bankruptcy-2/

[burnside]

I hope it all works out for your burnside.
do you know what course of action you're planning on taking i.e. CLSO etc?

CLSO seems like the least worst option but I'm seeking advise on that, whichever way I go though life is going to get very difficult for me very fast

[Finalwhistle]

CLSO seems like the least worst option but I'm seeking advise on that, whichever way I go though life is going to get very difficult for me very fast

Yup I feel your pain. It’s gonna hurt big time. Keep me updated with your plan of action please if possible.

[Ambitions]

Help and Advice

I have also come across Brendan Beekan -
He claims to have been the director of Darwin payroll in the isle of man, Which left me with an APN to HMRC of just under £30k, I was recommend to use 'Associate Services Limited 10636162' by my current umbrella company.
After my initial call which left me feeling rather nervous, as I was advised by Associate Services to asset shift and declare bankruptcy, they would fight the APN for £2000 upfront fee.
Whilst looking out all the correspondace with Darwin from several years ago, I noticed that the individual whom sold me this umbrella in the first place, has the name Brendan Beekan, also the name of the director on the firm 'Associate Services limited 10636162'

I am shocked to think that the same person that sold me this rubbish, is profitering again by posing as a 'Tax Specialist' to solve problems he played a part in creating.

has anyone used 'Associate services Limited 10636162'?

[piebaps]

Mr B is FInstSMM according to their website How to minimise your chances of being investigated by HMRC - Associate Services

This appears to mean he is a Fellow of the Institute of Sales and Marketing Management. This doesn't appear to be a handy skill for dealing with a tax investigation, although I may be wrong.

[webberg]

they would fight the APN for £2000 upfront fee.

WTF?

We don't "fight" APN's per se, that's for the lawyers, but we do make a number of representations which delay and on occasion have APNs removed.

Because we believe that resisting them outside a Court of Law is a pretty hopeless case, we charged a whole £50 plus VAT.

Later we charged £200 plus VAT but only after telling the client that they would have to pay the APN in most instances.

£2k?

[Ambitions]

In fairness Associate services used the word challenge, not fight.

I do disagree with the amount that HMRC want, as if i subtract that from my 88% i will be left with circa 40%.

When speaking with Associate services earlier today, as i mentioned in my original post, transferring my assets and declaring myself bankrupt - like the 88% seems to good to be true.
Their other suggestion of using another alternative umbrella company was also mentioned called Tailored Services which don't use loans but can still get me back 80% on a day rate of £300.
Ill check them out tomorrow but again it seems to good to be true.

I have looked into Big group but can you recommend a tried and trusted firm to assist with 'challenging the APN and gaining me some closure?

[webberg]

First, your 88% is presumably 100% of your invoices less 12% fees?

If so, HMRC claim that the basis of the tax charge is the 100%.

Resisting that is possible but HMRC do dig their heels in. We have convinced them in some instances that the start point is the net value, but their manual in this is always to not believe that.

For an umbrella to be within the provisions in Chapters 7 thru 9 ITEPA, they will treat all income going to you are subject to PAYE. There are some excellent threads here on umbrellas and the better ones will tell you that a PAYE type return is pretty standard across the reputable outfits.

If an umbrella is promising more, investigate carefully as there is likely to be some sort of tax "efficiency" involved and most of the legitimate means of doing that have been closed over the past two/three years, e.g. tax free allowances and contracts from non UK employers.

APN and closure are very different.

APN is hard to resist unless you want to go to Court as part of a Judicial Review. Expensive and to date none of them have worked.

Closure means settlement. You can do that with HMRC and start the process by calling them. That will not stop DMB collecting on the APN.

Closure usually comes with a legal agreement to sign part of which says that you will not be part of tax avoidance again. That's a loaded phrase, especially when HMRC can decide 15 years after the event that there has been avoidance, but you need to think about it hard.

On your day rate I would say you should be looking at 64% to perhaps 68%. Less umbrella fees. HMRC will see any umbrella offering 80% as avoidance. That would unpick any closure via settlement and lead to a heap of trouble.

As you say, if it looks too good to be true it probably is.

I will declare an interest in that we advise Big Group. That is aimed as resolution. You do not have to have left all "schemes" to be part of it, but we always recommend that you do.

Anyway, as you have obviously concluded that Big Group is not for you and perhaps by extension WTT, you will need to conduct a search of suitably experienced firms who can help.

Good luck

[Finalwhistle]

...

In fairness Associate services used the word challenge, not fight.

I do disagree with the amount that HMRC want, as if i subtract that from my 88% i will be left with circa 40%.

When speaking with Associate services earlier today, as i mentioned in my original post, transferring my assets and declaring myself bankrupt - like the 88% seems to good to be true.
Their other suggestion of using another alternative umbrella company was also mentioned called Tailored Services which don't use loans but can still get me back 80% on a day rate of £300.
Ill check them out tomorrow but again it seems to good to be true.

I have looked into Big group but can you recommend a tried and trusted firm to assist with 'challenging the APN and gaining me some closure?

Don't shoot the messenger here but the future of contracting is dead. April 19 signifies not only the DR LC but also potentially IR35 roll out to the private sector (as they did to the public sector). The options are go legit Umbrella at returns circa 64% or go Limited Company (with returns circa 74% if you are genuinely a company and IR35 compliant). There are no financial advantages between any of the umbrella companies other than the fee they charge (£20-40 per week) but after tax this varies very little. It is worth thinking about some of the other advantages that the umbrella offers i.e. customer rewards schemes and choosing your own pension provider (rather than the standard NEST). Having been involved in this mess i have gone full umbrella as a bit of a "breather" from it all. I've actually found my umbrella company to be very useful, knowledgeable and customer service has been excellent which is exactly what i need with all the uncertainty surrounding my previous employment years. If you want to hit them up their name is Liberty Bishop. Remember that these guys are set up to sort small contracts so start up with them and worth going legit for a bit until you decide what "other" course you want to run in the future.

[regron]

Don't shoot the messenger here but the future of contracting is dead. April 19 signifies not only the DR LC but also potentially IR35 roll out to the private sector (as they did to the public sector). The options are go legit Umbrella at returns circa 64% or go Limited Company (with returns circa 74% if you are genuinely a company and IR35 compliant). There are no financial advantages between any of the umbrella companies other than the fee they charge (£20-40 per week) but after tax this varies very little. It is worth thinking about some of the other advantages that the umbrella offers i.e. customer rewards schemes and choosing your own pension provider (rather than the standard NEST). Having been involved in this mess i have gone full umbrella as a bit of a "breather" from it all. I've actually found my umbrella company to be very useful, knowledgeable and customer service has been excellent which is exactly what i need with all the uncertainty surrounding my previous employment years. If you want to hit them up their name is Liberty Bishop. Remember that these guys are set up to sort small contracts so start up with them and worth going legit for a bit until you decide what "other" course you want to run in the future.

Any reason you didn't go LTD but declare inside IR35 ? Even without expenses/dividends I thought you would be slightly better off than an umbrella and you get to keep control of your money, in your business account from invoice.