Reply to: The stuff you need to know about loan schemes......

[Emigre]

Just found this as well - those little tykes have been busy haven't they Offshore Targets In Sight For British FATCA - iExpats.com

Shame their facts are so wrong...

Under the LDF you either pay tax on income at the normal chargeable rate or you can elect to pay a composite rate of 40% of all income, gains etc with no reliefs available. You then pay 10% penalty on that sum for the element relating to the first 10 years and 20% for the later 3 years if HMRC had already told you about the LDF (otherwise 10% penalty continues).

Not quite the 10% and 20% stated!!!

[Edmontonexpat]

Sanzar Conclusion?

Hi,

Can anyone share what they actually did after the HMRC contacted them about Sanzar Solutions? Did you reply to them and, if so, have they replied and demanded tax equivalent to PAYE tax and a fine? Did you write to Garraway and, if so, have they replied? Any information would be gratefully appreciated!

[LisaContractorUmbrella]

I'd have to take issue with the statement about bullying tactics from the VAT people. VAT is, and always has been, very clear. The rules are understood and applied consistently and if you do what you are supposed to their people are generally helpful and understanding. It's when you try and fiddle your VAT that the gloves come off. Even then it's not bullying, it's applying the rules and not taking any bulltulip. I know two guys who are now senior VAT inspectors, they take their jobs extremely seriously when they think someone has been ripping them off.

The Inland Revenue people are the ones who are basically making it up as they go along and trying to appropriate the legal powers that the Customs and Excise (VAT) have had all along. They need no lessons in Bullying from anyone.

Re-phrased

[DaveB]

Unsure why they are targeting the middle classes

Yep agree with you - seems like the tax office are learning a few bullying tactics from their colleagues at the VAT office

Just found this as well - those little tykes have been busy haven't they Offshore Targets In Sight For British FATCA - iExpats.com

I'd have to take issue with the statement about bullying tactics from the VAT people. VAT is, and always has been, very clear. The rules are understood and applied consistently and if you do what you are supposed to their people are generally helpful and understanding. It's when you try and fiddle your VAT that the gloves come off. Even then it's not bullying, it's applying the rules and not taking any bulltulip. I know two guys who are now senior VAT inspectors, they take their jobs extremely seriously when they think someone has been ripping them off.

The Inland Revenue people are the ones who are basically making it up as they go along and trying to appropriate the legal powers that the Customs and Excise (VAT) have had all along. They need no lessons in Bullying from anyone.

[LisaContractorUmbrella]

Middle-classes to be targeted in tax evasion clampdown - Telegraph

Looks as though the targeting of users of the various offshore schemes and importantly, their promoters are to be in the sights of the authorities.

Surely anyone using these now, wants their head seeing to?

Unsure why they are targeting the middle classes

Yep agree with you - seems like the tax office are learning a few strong arm tactics from their colleagues at the VAT office

Just found this as well - those little tykes have been busy haven't they http://www.iexpats.com/2013/01/offsh...british-fatca/

[Waldorf]

Middle-classes to be targeted in tax evasion clampdown - Telegraph

Looks as though the targeting of users of the various offshore schemes and importantly, their promoters are to be in the sights of the authorities.

Surely anyone using these now, wants their head seeing to?

[neo222]

For anyone considering these schemes, a link to another thread where someone's been bitten.

http://forums.contractoruk.com/accou...on-letter.html

Yes, this is me, unfortunately. Not sure of the exact implications yet, but I wish I had gone the limited company route early, and not fallen for the guarantees and promises.

I still get weekly calls from AML and others asking me to come back. Promising me 90% returns! Don't do it.

[mudskipper]

For anyone considering these schemes, a link to another thread where someone's been bitten.

http://forums.contractoruk.com/accou...on-letter.html

[DonkeyRhubarb]

Cojak ( or anyone else ? ), as somebody who seems to follow this stuff, do you fancy trying to explain to the casual follower of these threads, why HMRC/government can't come up with some legislation to stamp out the offshore schemes when they are so obviously set up for the sole purpose of avoiding tax and NI ?

Same applies to IR35 really, if they want to make us pay NI then why can't they just legislate accordingly, it can't be that hard, surely !?

The difficulty with IR35 is framing legislation in such a way that it catches the people you want to (disguised employees) but doesn't affect people running legitimate businesses. Differentiating, in law, between genuine (commercially motivated) incorporation and that done for the primary purpose of avoiding tax is not that easy.

I guess the Government are hoping that the GAAR (General Anti-Avoidance Rule) they are planning to introduce next year will stamp out a lot of the "contrived" schemes.

[rootsnall]

Of course it's not, they probably don't have their own money invested in them. To providers this just business.

Cojak ( or anyone else ? ), as somebody who seems to follow this stuff, do you fancy trying to explain to the casual follower of these threads, why HMRC/government can't come up with some legislation to stamp out the offshore schemes when they are so obviously set up for the sole purpose of avoiding tax and NI ?

Same applies to IR35 really, if they want to make us pay NI then why can't they just legislate accordingly, it can't be that hard, surely !?

[cojak]

The stuff you need to know about loan schemes......

Of course it's not, they probably don't have their own money invested in them. To providers this just business.

[Waldorf]

Offshore employment intermediaries: The Government has announced that it will undertake an internal review of offshore intermediaries being used to avoid tax and NICs and will announce its conclusions at the 2013 Budget.

To all the offshore scheme providers - is this giving you sleepless nights? Perhaps this will be the end of the offshore schemes, same as when MSC's were shut down in 2007?

[cojak]

Hi Geoff,

I was reading all of these conversations regarding to loan and would like to ask you a question;
I've received a letter from HMRC couple of weeks ago regarding of me using Sanzar Solution in 2010-2011 tax year and asking how much loan have I been paid and if I have repaid any.
What will be your recommendation regarding to this as I need to respond to HMRC. Having said that Sanzar has closed their website and I'm not the only one stuck in this mess.

Thanks,

Safe

And I came across this little gem while I was digging around Bedouin posts...

http://forums.contractoruk.com/accou...tml#post911432

[prozak]

Hi prozak ! Forgive me if I didn't feel compelled to answer your question within minutes of you asking it

Given posts like the following:



Your MO on this board seems to be to wind up or "troll" certain individuals, an activity which I refuse to get drawn into, and is quite possibly against the T's & C's of the forum.

Regardless, I won't be disclosing confidential & commercially sensitive information on this forum. It's not that I have anything to hide, the reasons for my non-disclosure should be very obvious and are completely benign.

No problem Phil.


Your MO appears to be a lurker trying to drum up business without havng to advertise. Hoping not to be caught out in your web of lies.

And yes you DO have somethig to hide phil. That is pretty clear. Otherwie your disclosure would be full.

There is no IP in your scheme. There is notthing clever in what you do.

Not every provider is willing to lie and mislead by calling their scheme "risk free" though. That's a new low that only you seem willing to stoop too.

[Nixon Williams]

Offshore employment schemes

The Autumn Statement has announced:

'The Government will undertake an internal review of offshore intermedaries being used to avoid tax and NIC's and will provide an update at the Budget 2013.'

Not a surprise, given all the recent publicity regarding aggresive tax avoidance schemes.