Reply to: Those affected by BN66

[SueEllen]

I thought it was the company's money

And that company is run by its director(s)

[oracleslave]

I wouldn't let anyone control my money apart from me.

I'd go Ltd whatever.

I thought it was the company's money

Are you sure you're cut out to be a contractor?

[cojak]

I wouldn't let anyone control my money apart from me.

I'd go Ltd whatever.

[normalbloke]

Why do you think nobody's safe ? If you are in the top earning bracket and pay the top rate of tax what is there to worry about ? I pay the top rate, dont dodge any tax, dont use any scheme to avoid any tax and hence I go to bed every night safe in the knowledge that I will never be targetted by HMRC.

You on the other hand tried to cheat the government out of the tax due by trying to get away with just 3% tax instead of the top rate. Call it stupid or naive, either way you thought you had access to some secret money saving scheme. Dont try to put the fear of government changing legislation into me, they will have plenty of targets like you to first deal with before they come to me.

So you are with a brolly and not a Ltd?

[Churchill]

I cant afford to, I pay a lot in taxes leaving me with not enough to buy a fast car or buy a huge house.

On the other hand if there was an offshore scheme that would help legally avoid some of that taxes.....

ftfy

[d000hg]

I cant afford to, I pay a lot in taxes leaving me with not enough to buy a fast car or buy a huge house.

On the other hand if there was an offshore scheme that would help avoid some of that taxes.....

If you pay the amount of taxes you're supposed to on a large income, you're still left with most of it, i.e. a lot.

[fullyautomatix]

Is that what you do with all your post-tax income now?

I cant afford to, I pay a lot in taxes leaving me with not enough to buy a fast car or buy a huge house.

On the other hand if there was an offshore scheme that would help avoid some of that taxes.....

[BrilloPad]

Is that what you do with all your post-tax income now?

Are you sugggesting there is anything else apart from fast cars, booze and hookers?

Inflation is going to eat away any savings so that is pointless.

[d000hg]

If I was earning 200K and somehow managed to get into a scheme which allowed me to pay 3% tax, I would blow all my cash on fast cars, booze and hookers.

Is that what you do with all your post-tax income now?

[BrilloPad]

That certainly adds a context (ouch!) has HMRC started to come after your assets yet or do you still have time to do some contingency planning?

HMRC have to go through lower tax appeals court, higher appeals and then there is possibility of another JR! In the meantime MP are going to Europe.

What sort of contingency planning do you have in mind? Rob a bank?

[eek]

I believe that if you have high expenses in your business and end up being caught by IR35 then you will still be in trouble. Tax rates can go up and over 100% of what you earn since they are based on turnover not profits.

To do that you would have to be fairly low paid and away from home. The problem is that those were the type of roles (support...) which would be caught under IR35.

[hugebrain]

Why do you think nobody's safe ? If you are in the top earning bracket and pay the top rate of tax what is there to worry about ? I pay the top rate, dont dodge any tax, dont use any scheme to avoid any tax and hence I go to bed every night safe in the knowledge that I will never be targetted by HMRC.

I believe that if you have high expenses in your business and end up being caught by IR35 then you will still be in trouble. Tax rates can go up and over 100% of what you earn since they are based on turnover not profits.

[Churchill]

That certainly adds a context (ouch!) has HMRC started to come after your assets yet or do you still have time to do some contingency planning?

Me? I'm fine, I was never on the scheme.

[Troll]

If some people are in danger of losing their homes doesn't that frame the conversation adequately?

That certainly adds a context (ouch!) has HMRC started to come after your assets yet or do you still have time to do some contingency planning?

[Arturo Bassick]

Lets see. Off shore thrust. - Advice taken from a QC that the scheme worked, fully disclosed to the Revenue since 2001 - No indication that retrospection would be used. Seemed that my liabilities were more certain than if I had danced the IR35 dance. I had no certainty of my tax liability with IR35 at the time. The Offshore scheme seemed safer. Certainly wasn't up for giving up almost 60% of my income at the top end to the tax man when I wasn't getting paid holidays, a pension, sick pay or any other permy perks.

If I knew the revenue had a time machine back then, then I would not have gone for it. Was a risk based decision which at the time was easy to make.

Nobody deserves this. The hypocrites in power that voted for this subsequently complained that they should not have to pay back the expenses that they claimed as they were within the rules at the time. That is all we are asking for as well.

and you had no inkling that a scheme that allowed you to pay only 3% tax might not be "legit"? I am impressed that you asked a QC before joining the scheme.
Even with legal advice I would be sceptical that as a UK resident I could earn money in the UK for services supplied in the UK then give that money to a foreign trust fund and then ship it back without the tax man touching it.
I have worked abroad for many years and have never achieved escape velocity for the UK tax man.