IR35 reforms could put contractors at risk of 'second wave' of loan charge bills

[KUWTC]

Thoughts?

IR35 reforms put IT contractors at risk of 'second wave' of loan charge-like tax bills, experts warn

[simes]

I suppose anything is possible.

But hopefully the current Loan Charge press coverage would be loud and wide enough for even the most hermit like of contractors to be aware of, and to thus stay away from.

[cojak]

Let's put it this way - I WILL be asking Admin to set up an 'HMRC IR35 Enquiries' sub-forum next year, because I know what contractors are like.

[KUWTC]

I suppose anything is possible.

But hopefully the current Loan Charge press coverage would be loud and wide enough for even the most hermit like of contractors to be aware of, and to thus stay away from.

You would hope, but you never know. It depends if people take a "it'll never happen to me" attitude to life, and also how these things are marketed to people. My concern is, if the loan charge review concludes the policy should be scrapped, will we see a flood of these schemes (or things like them) with promoters claiming HMRC tried to clampdown on them in the passed and failed, so they are safe to use?

[ladymuck]

I don't think it'll necessarily lead to a flood of schemes but there will always be someone who thinks up something and manages to successfully sell it to the greedy and the gullible

[BrilloPad]

But hopefully the current Loan Charge press coverage would be loud and wide enough for even the most hermit like of contractors to be aware of, and to thus stay away from.

We can hope. But plenty of contractors thought they were using an umbrella ending up using a loan scheme.

[BrilloPad]

I don't think it'll necessarily lead to a flood of schemes but there will always be someone who thinks up something and manages to successfully sell it to the greedy and the gullible

Since HMRC do not target the promoters, there is plenty of incentive to create schemes.

And some of them are very convincing liars.

[cojak]

We can hope. But plenty of contractors thought they were using an umbrella ending up using a loan scheme.

Quite, just see here: https://www.contractoruk.com/forums/...ml#post2694342

And since some contractor's due diligence ends at the Salesman's assurance that it is compliant, they will continue to do so.

[dx4100]

I an going to be that arse and say I have no sympathy with anyone jumping on a "scheme"...

its pretty clear what you can and cannot do and if other don't want to do their due diligence then more fool them.

[cojak]

I an going to be that arse and say I have no sympathy with anyone jumping on a "scheme"...

its pretty clear what you can and cannot do and if other don't want to do their due diligence then more fool them.

The problem will be when the agent has a list with only 5 umbrellas on it, 3 of whom are schemes and one is their own.

Then the only thing the contractor can do is walk away and let someone more gullible take it.