Reply to: Montpelier vs. HMRC - Contingency Options

[BolshieBastard]

I was in the Montepelier scheme for about 2 years. So, fortunately the tax liability isnt too great since I didnt work continuously during that period.

Still, its a worry all the same especially sinceHMRC appear to have done nothing except ask the same questions every 9 months or so ie when did you enter the scheme, when did you leave, submit accounts for the period etc, etc?

I've often wondered why HMRC has delayed making a decision on the scheme and there can only be two reasons;

1, they think the chances of winning any test case is 50 \ 50 at best
2, they are waiting for some retrospectic power to come into force.

Surprise, surprise, I now see the government is bringing in retrospective finance legislation in July this year which will have the effect of outlawing schemes or similar schemes at a stroke!

I've held off paying any money on account and TBH, MTM or whatever they call thmesleves nowadays, are fecking useless at keeping you up to date with what's happening and more importantly, lessening your tax penalties! That last bit is surprising since they claimed to be about lessening your tax burden if you joined their fecking scheme!

What's the concensus of opinion from informed former members of the scheme, pay on account, make a payment based on one of the other options (if so which) ir sit tight (not really an option now as it drags on and on!)?

[BrilloPad]

I'm always right.


It's just the degree to which I'm right that people have trouble with...

I married miss right - I just never knew her first name was always! boom boom!

IGMC

[poppy01]

Your all right, I wasnt being entirely serious, but I thought the irony of HMRC driving me back into the arms of an avoidance scheme delicious...

[malvolio]

Gosh - we all agree Mal is right! Maybe I am dreaming and will wake up...

I'm always right.


It's just the degree to which I'm right that people have trouble with...

[BrilloPad]

Oh, I know - IR35. Nonsense, not a consideration. Go LtdCo regardless.

Mal is right. There is much less risk of getting investigated with a Ltd Co than if you are in a scheme. Even if your working practises would technically be deemed employment, the chances of getting caught are very slim. After 7 years, IR35 has proved to be largely ineffective.

Gosh - we all agree Mal is right! Maybe I am dreaming and will wake up...

[DonkeyRhubarb]

Oh, I know - IR35. Nonsense, not a consideration. Go LtdCo regardless.

Mal is right. There is much less risk of getting investigated with a Ltd Co than if you are in a scheme. Even if your working practises would technically be deemed employment, the chances of getting caught are very slim. After 7 years, IR35 has proved to be largely ineffective.

[Lewis]

Given the ongoing discussion on the other thread re rejoining Montpelier, which it would appear is a loan scheme that so far hasnt been attacked and may or may not be attacked retrospectively (who knows these days) , I think a legitimate option should be added of rejoining MP, and putting every extra penny into a CTD to pay the BN66 bill. There may or may not be a later issue re the loan scheme but that's something to worry about later. Its not ideal but might help with the immediate problem.

There may or may not be a later issue re the loan scheme but that's something to worry about later.

You can't be serious. But you could end up in even WORSE a situation. For what a few thousand pounds. My thoughts are here on the other BN66 thread ... http://forums.contractoruk.com/587038-post970.html

[BrilloPad]

Don't follow the logic at all. Use MP to sort the curent mess, but why start a whole new one? Andif all you're going to do with your "saved" tax is lock it away for 20 years just in case, why not get your own company, save the tax legitimately and get some benefit from it. At least then you'd be on fairly stable legal ground.

Oh, I know - IR35. Nonsense, not a consideration. Go LtdCo regardless.

IMO Mal has understated this! First rule - if you are in a hole stop digging....

[malvolio]

Given the ongoing discussion on the other thread re rejoining Montpelier, which it would appear is a loan scheme that so far hasnt been attacked and may or may not be attacked retrospectively (who knows these days) , I think a legitimate option should be added of rejoining MP, and putting every extra penny into a CTD to pay the BN66 bill. There may or may not be a later issue re the loan scheme but that's something to worry about later. Its not ideal but might help with the immediate problem.

Don't follow the logic at all. Use MP to sort the curent mess, but why start a whole new one? Andif all you're going to do with your "saved" tax is lock it away for 20 years just in case, why not get your own company, save the tax legitimately and get some benefit from it. At least then you'd be on fairly stable legal ground.

Oh, I know - IR35. Nonsense, not a consideration. Go LtdCo regardless.

[poppy01]

additonal option

Given the ongoing discussion on the other thread re rejoining Montpelier, which it would appear is a loan scheme that so far hasnt been attacked and may or may not be attacked retrospectively (who knows these days) , I think a legitimate option should be added of rejoining MP, and putting every extra penny into a CTD to pay the BN66 bill. There may or may not be a later issue re the loan scheme but that's something to worry about later. Its not ideal but might help with the immediate problem.

[poppy01]

And think of the pleasure you will give Mr Brannigan. Don't give the sick puppy the satisfaction.

Mr B is a civil servant, he will be utterly indifferent to any such occurrence, feeling neither joy nor sadness, it will only concern him in so much as it may affect his collection quota.
He is 'just doing his job', an argument which, I believe , has been used before.

[BrilloPad]

Sadly, I think you may be right. If the guy I knew did it for a few hundred quid...

I wouldn't be surprised if there are a few family breakups as well.

It is easy to say "it's only money" but it's often the cause of most problems in relationships. Fortunately, I'm lucky in this department as my wife is completely blase about the whole thing. She always thought it was a bit dodgy but reckoned it was worth a punt.

If you ever want to talk PM me. Same goes for anyone else. Talk to someone before you contemplate anything drastic. There are friends here who will listen.

Most relationships break up over money or sex. Though neither was a factor when my marriage broke up.

If there is anyone reading this who is approaching a bad state - remember that we have not lost anything yet. And there are plenty of better alternatives. Talk to DR or me - I can be PMed or emailed. There is always a solution.

[BrilloPad]

I would never do that, think of the inconvenience caused to all those people.
My suggestion is not entirely in jest, it really has crossed my mind, but I'm too much the coward. I suspect though that at least one of us will if it goes against us.

And think of the pleasure you will give Mr Brannigan. Don't give the sick puppy the satisfaction.

[DonkeyRhubarb]

I would never do that, think of the inconvenience caused to all those people.
My suggestion is not entirely in jest, it really has crossed my mind, but I'm too much the coward. I suspect though that at least one of us will if it goes against us.

Sadly, I think you may be right. If the guy I knew did it for a few hundred quid...

I wouldn't be surprised if there are a few family breakups as well.

It is easy to say "it's only money" but it's often the cause of most problems in relationships. Fortunately, I'm lucky in this department as my wife is completely blase about the whole thing. She always thought it was a bit dodgy but reckoned it was worth a punt.

If you ever want to talk PM me. Same goes for anyone else. Talk to someone before you contemplate anything drastic. There are friends here who will listen.

[poppy01]

Not even in jest would I add that to the list.

I knew someone who committed suicide earlier this year over money worries. He'd run up a few debts on credit cards but the final tipping point was an unauthorised overdraft of £50 which incurred bank charges. The guy threw himself off a bridge into an oncoming train, and left a wife and 4 kids. The family were absolutely devastated.

I would never do that, think of the inconvenience caused to all those people.
My suggestion is not entirely in jest, it really has crossed my mind, but I'm too much the coward. I suspect though that at least one of us will if it goes against us.