SA and Tax Avoidance question?

[NotAllThere]

A QC (who may be receiving fees from the scheme) has given an opinion that It is in line with HMRC current legislation and technically it is working.

FTFY

[BlasterBates]

I would advise you to straighten out your tax affairs before you submit your tax return.

Go and see a reputable accountant on the options.

The alternative is as follows:

Within a few months you receive a letter from HMRC that they have opened a COP 8 investigation.

A few months after that you will receive a bill for the full amount of tax including National Insurance and interest outstanding, you then have to prove it's legal.

....and don't believe the clap trap you've been fed about it being legal. I mean it's not illegal but your scheme providers just paid the wrong amount of tax. The real tax bill will come and will be hefty.

Basically HMRC will argue a) the money was earnt before it went into the EBT, b) it isn't a loan anyway because a real loan gets paid back.

No harm in tax avoidance but the rule is not to overdo it.

[EBTContractor]

Ticked Yes and provided number as advised by provider and friend who works in UK tax at KPMG

Sent from my GT-I9300 using Tapatalk

[Old Greg]

If it's all above board, why not tell them what you're up to?

[Clare@InTouch]

Then you are part of a scheme that should have a DOTAS number

Well I'm glad you think so. Appearances can be deceptive.

Agree with the above.

Any offshore loan scheme is very high risk in my view, and even it appears to be working it doesn't mean it won't be challenged at a later date and found to be ineffective. Contact the scheme provider and ask for their DOTAS reference number.

[eek]

I receive offshore loans on an ad hoc basis.

EDIT: I am not asking for advice on whether what I am doing is morally correct. I've been told it is in line with HMRC current legislation and that technically it is working.

ftfy as it only takes the threads in the HMRC Scheme Enquiries thread to see an awful lot of other people who believed the same.

Also hasn't your provider told you how you should fill the form in?

I would not be at all surprised if they use the fact your filled the form in incorrectly as the basis of them wiggling out of supporting you when HMRC comes knocking...

[malvolio]

I receive offshore loans on an ad hoc basis.

Then you are part of a scheme that should have a DOTAS number

EDIT: I am not asking for advice on whether what I am doing is morally correct. It is in line with HMRC current legislation and technically it is working.

Well I'm glad you think so. Appearances can be deceptive.

[LisaContractorUmbrella]

I receive offshore loans on an ad hoc basis.

EDIT: I am not asking for advice on whether what I am doing is morally correct. It is in line with HMRC current legislation and technically it is working.

Are you sure that it's compliant with all current legislation https://www.gov.uk/government/public...intermediaries

The company that's providing you with the loans should have registered with HMRC under DOTAS HM Revenue & Customs: Disclosure of tax avoidance schemes - if they have then HMRC will have a record that it's a tax avoidance scheme and you should declare it - if not then I would ask the providers why and then review what contingencies you have in place should HRMC come knocking.

[EBTContractor]

What is it that you're not sure if you need to disclose? What are you doing that you're not sure about?

Give us a few pointers about what you're doing and we may be able to tell you whether or not you need to disclose it

Tax avoidance can be many things, some are quite common whilst some are on decidedly shaky ground!

I receive offshore loans on an ad hoc basis.

EDIT: I am not asking for advice on whether what I am doing is morally correct. It is in line with HMRC current legislation and technically it is working.

[Clare@InTouch]

What is it that you're not sure if you need to disclose? What are you doing that you're not sure about?

Give us a few pointers about what you're doing and we may be able to tell you whether or not you need to disclose it

Tax avoidance can be many things, some are quite common whilst some are on decidedly shaky ground!

[EBTContractor]

I am completing this and wondering if I should say YES to being part of a tax avoidance scheme?

How do I know if I am required to disclose what money I have coming in?

HMRC says:

Tax avoidance schemes
If you were party to one or more tax avoidance schemes, please select 'Yes' from the drop-down menu otherwise, select 'No'.

If you have used a scheme or arrangement to obtain tax advantage that you are required to disclose and you:

have been issued with a scheme reference number in 2012-13, or
expect to receive a tax advantage from the scheme or arrangement in 2012-13 or in a period covered by a future return,

How do I know what I need to disclose? And no, I do not have a scheme reference number.

I still have no clear idea of what they mean by "tax avoidance". To me it simply means using HMRC's own rules to avoid paying any more tax that I absolutely have to pay. The same as I might deliberately
travel on an inconvenient time or day in order to take advantage of the cheapest fares of an airline, railway or ferry.

Something you would no doubt regard as unethical fare-avoidance.

Any pointers, guys?

Thanks