I feel like it is punishment for contactors, not tax redress
I would like to just have a little vent as to why I feel that these new demands are counterproductive. They encourage me into paralysis rather than action to pay a reasonable tax up
So I am happy to settle if it really is tax avoidance. The scheme was used as an admin of payments and I wasn't using it to avoid tax. But now we seem to be in a real pickle. Here is what I think HMRC want:
I earned say 100 Gross
-20 for Sanzar fee
-20 for salary which had tax and NIC on it
So on salary say I received 15 net of tax
60 received as loans
-25 (say) for income tax being claimed by HMRC
-more for NIC perhaps? Who knows how much?
-more for IHT perhaps? Who knows how much?
So my net on the loans would be 35 or much less
So at best without additional NIC and IHT liabilities (which I can't understand) if I settle I am left with less than 50 out of the 100 (50% deductions rate). With NIC and IHT perhaps the effective deductions rate jumps to 70% or more?
I feel that this approach is more about dolling perceived punishment on those of us ignorant of tax affairs than about putting us on the right footing. The latest (you may have to pay IHT and NIC on top of this) is confirmation of this executioner attitude by the HMRC.
What happened to decency and doing morally the right thing?! If HMRC said to me, out of that 100 I should have paid say 35% tax and 10% NICs so 45% in total and asked me to top up to that level so I still kept the same net income. That would be a sensible amnesty and I would do that, as it was also the right thing morally for me to do given my ignorance of the tax situation earlier.
However as this feels like a punishment, I am in a corner from which I feel I cannot budge. So we will end up going to court probably in a bid to show taht this is punishment not tax redress.
I appeal to anyone with common sense to think this through. It's currently counterproductive and morally wrong.
Anyway rant over.
I would like to just have a little vent as to why I feel that these new demands are counterproductive. They encourage me into paralysis rather than action to pay a reasonable tax up
So I am happy to settle if it really is tax avoidance. The scheme was used as an admin of payments and I wasn't using it to avoid tax. But now we seem to be in a real pickle. Here is what I think HMRC want:
I earned say 100 Gross
-20 for Sanzar fee
-20 for salary which had tax and NIC on it
So on salary say I received 15 net of tax
60 received as loans
-25 (say) for income tax being claimed by HMRC
-more for NIC perhaps? Who knows how much?
-more for IHT perhaps? Who knows how much?
So my net on the loans would be 35 or much less
So at best without additional NIC and IHT liabilities (which I can't understand) if I settle I am left with less than 50 out of the 100 (50% deductions rate). With NIC and IHT perhaps the effective deductions rate jumps to 70% or more?
I feel that this approach is more about dolling perceived punishment on those of us ignorant of tax affairs than about putting us on the right footing. The latest (you may have to pay IHT and NIC on top of this) is confirmation of this executioner attitude by the HMRC.
What happened to decency and doing morally the right thing?! If HMRC said to me, out of that 100 I should have paid say 35% tax and 10% NICs so 45% in total and asked me to top up to that level so I still kept the same net income. That would be a sensible amnesty and I would do that, as it was also the right thing morally for me to do given my ignorance of the tax situation earlier.
However as this feels like a punishment, I am in a corner from which I feel I cannot budge. So we will end up going to court probably in a bid to show taht this is punishment not tax redress.
I appeal to anyone with common sense to think this through. It's currently counterproductive and morally wrong.
Anyway rant over.
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