Tax Avoidance Schemes - Labour is after you

[Sir_Edward_Matheson]

I think there will always be these schemes going on - and what one should do depends on one's risk profile.

Indeed, as can be seen from one of these schemes publicly saying that they already have a new plan in place backed by Counsel's Opinion, now that the old one has been invalidated.

[BrilloPad]

I think there will always be these schemes going on - and what one should do depends on one's risk profile.

[TheFaQQer]

I still reckon that there will be some way for those that want to do so, to push the legislation a bit.

Not for me, but I'm sure there are plenty out there who would do it.

[dude69]

I'm sure that the smart providers will find something new that they can try with the same degree of success.

The cynic in me says that there must be some other loopholes that can be exploited.

You are required to disclose avoidance schemes now though.

HMRC has made it clear from this action that whatever you disclose will be closed in the next budget or two.

Just don't bother.

[TheFaQQer]

I'm sure that the smart providers will find something new that they can try with the same degree of success.

The cynic in me says that there must be some other loopholes that can be exploited.

[dude69]

And how are they going to do that it they have zero income?

tim

Correct.

Many of these scams could see a mass exodus, the scam, sorry scheme, going bust and contractors losing whatever money they have in there.

Act NOW.

Sign new contracts, get whatever they owe you, instruct your agency not to send them another PENNY.

Your money is at risk! Forget Northern Rock, these schemes are far, far, far more dangerous.

[tim123]

Go Ltd. And make sure twentyplus will cover the costs of HMRC investigating you.

And how are they going to do that it they have zero income?

tim

[Cheshire Cat]

Just spoke to Twentyplus, apparently their legal team are meeting now and should have a statement in a few days time.

In the meantime I am looking as to what my other options are....

Go Ltd. And make sure twentyplus will cover the costs of HMRC investigating you.

[portseven]

Just spoke to Twentyplus, apparently their legal team are meeting now and should have a statement in a few days time.

In the meantime I am looking as to what my other options are....

[portseven]

Doesn't look good, I am with twentyplus, have just sent a mail asking their position and plans.

[Fred Bloggs]

The clock is ticking.......

[IR35 Avoider]

4.68 The Government announces, with retrospective effect from 12 March 2008, clarification of indefinitely retrospective legislation introduced in 1987 to counter double taxation treaty avoidance schemes, so that the legislation applies as intended and is effective.
This will ensure that, notwithstanding the wording of any double taxation treaty, UK residents pay UK tax on their profits from foreign partnerships. Budget 2008 announces there will also be a further measure to prevent future tax avoidance through the misuse of double taxation
treaties by UK residents.

Does this mean Montpelier ceases working from today, and hence the government admits that anyone funnelling all their contract income through it since 2001 was doing so perfectly legally?

If I recall correctly, this scheme gave you a take-home of something like 85%, and of the remainder HMRC only got about a third.

[Cheshire Cat]

Clarity is NOT something that HMRC do. Deliberately so.

[dude69]

From the Budget:

4.64 The disclosure regime, introduced at Budget 2004, allows the Government to respond to avoidance swiftly and in a targeted fashion. Following announcements at the 2007 Pre-Budget Report and subsequent consultations, the Government will legislate in Finance Bill 2008 to improve the existing system of identifying users of disclosed tax avoidance schemes,
and will legislate later in 2008 to extend the stamp duty land tax (SDLT) disclosure rules to residential property worth £1 million or above. A formal response to this aspect of the consultation will be published in due course, including the timetable for consulting on and introducing secondary legislation.
4.65 The Government announces measures to address a number of avoidance schemes, many of which have been identified through the disclosure regime:

•• ending of the use of artificial arrangements by individuals to create trading
losses to offset against other income through sideways loss relief;
•• closure of a number of highly artificial avoidance schemes involving
partnerships and trusts that seek to avoid a charge under the controlled
foreign companies rules;
•• clarification that the application of the related party rules in the corporate
intangible assets regime is unaffected by any insolvency arrangements in
which any company or partnership may be involved;
•• clarification of legislation relating to employment-related shares and
securities, to ensure rules to prevent double taxation are not exploited to reduce the amount of tax and national insurance paid on employment income;
•• confirmation that a company’s relief on its pension contributions in a given
year are limited to the actual contributions it has made in that year;
•• clarification of SDLT anti-avoidance provisions introduced in Finance Act
2008, to tackle SDLT avoidance which exploited legislation intended to help
the transfer of property between different partners within an investment
partnership; and
•• measures to counter two schemes designed to avoid payment of SDLT. The first scheme misuses provisions intended to help financial institutions using alternative finance schemes. The second scheme misuses provisions to allow group relief from SDLT.

4.68 The Government announces, with retrospective effect from 12 March 2008, clarification of indefinitely retrospective legislation introduced in 1987 to counter double taxation treaty avoidance schemes, so that the legislation applies as intended and is effective.
This will ensure that, notwithstanding the wording of any double taxation treaty, UK residents pay UK tax on their profits from foreign partnerships. Budget 2008 announces there will also be a further measure to prevent future tax avoidance through the misuse of double taxation
treaties by UK residents.