HMRC Threatening my ex-clients/mortgage provider, the works!

[DonkeyRhubarb]

To be honest it didn't feel that much different to the previous year as was on paye for a portion and then the rest via loans which they said at the time had to come from somewhere other than the trust and then was maybe sold on to the trust, struggling to remember the specifics though!

I'm surprised the scheme provider would have continued with an employee/PAYE arrangement after the new disguised remuneration rules came into force in Dec 2010. Other schemes I know of switched their users to self-employed from Jan 2011.

[njwilli3]

To be honest it didn't feel that much different to the previous year as was on paye for a portion and then the rest via loans which they said at the time had to come from somewhere other than the trust and then was maybe sold on to the trust, struggling to remember the specifics though!

[DonkeyRhubarb]

Since this was 2011/12, after the disguised remuneration rules came in for employees, I'm guessing you were self-employed (sole trader) in this scheme?

If so, it looks like HMRC may be coming at this from a disguised employment angle.

In the first instance, they would have to assess the deemed employer ("umbrella", agency or client) for PAYE. That's where Regulation 80 comes in.

[cojak]

It doesn't say regulation 80 on the letter, are you saying that's where it is going. That link mentions 100% penalties too?

No, I'm not saying that, this is to give you possible reasons as to why HMRC are taking this line of enquiry.

[njwilli3]

When things go wrong with PAYE | Tax Adviser

It doesn't say regulation 80 on the letter, are you saying that's where it is going. That link mentions 100% penalties too?

[cojak]

...doesn't this relate to employer returns? OP was in a loans arrangement.

Need I suggest that you should join BigGroup?

http://www.taxadvisermagazine.com/ar...-go-wrong-paye

[jbryce]

Google Regulation 80 determinations.

...doesn't this relate to employer returns? OP was in a loans arrangement.

Need I suggest that you should join BigGroup?

[Iliketax]

Google Regulation 80 determinations.

There's a lot of these going about at the moment...

[cojak]

Google Regulation 80 determinations.

[foobar]

Write back and ask what the legal basis of their request is.

[njwilli3]

So I had to re-submit my tax return for 2011-12 late last year and provide my loan amount in the white space but making sure to let them know I'm still treating them as loans, even if they aren't.

Anyway latest brown letter this morning is asking for the following:

1 - The amount of loans received in the year ended 5 April 2012 --> This is what I put on my tax return obviously

2 - The name of the end user/client and the address of the premises where you worked --> GULP!

3 - Type of work done --> Pretty sure my job title was on the tax return

4 - The name and address of any agency used --> Is this for real??

5 - The name and address of any umbrella company used --> again on the tax return!

6 - The start and finish date --> hmm tax return, no?

7 - Your charge out rate --> Guessing this was my daily rate?

8 - The name and address of the persons who promoted the use of loans and if different, the person who introduced you to those persons and how you became aware of them. --> So they want me to grass up my mate who referred me?

9 - Bank statements for the year ended 5 April 2012 showing the receipt of remuneration and any loans --> Do I really have to send them this??

10 - You employment contract(s) --> This is getting scary

11 - Any loan agreements --> If I have these, should I be sharing?

12 - Any promotional material showing how the arrangements work --> To be honest I'd love to see this too!

Now further on it says that they they may need to contact my clients to check their tax position relating to their contract with me! Surely that isn't legal to be discussing my tax situation with ex-clients?!

Furthermore they say that they may need to contact my mortgage provider - If the level of my income on my tax return is lower than the income disclosed on the mortgage application then HMRC would need to consider penalties??!!

Has anyone else been drilled as much as this? Can they legally discuss these things with people who aren't basically, well me?