Smart Pay Umbrella

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kentishlad replied

25 May 2018, 10:58
Originally posted by luxCon View Post

Only 4 months worth of loan? You are so lucky.

In that case I suggest you register interest to settle with HMRC BEFORE 31st May.

Declare your loans, pay the tax as if they were income in 2016 tax year added to that years tax return income. That way monkey off your shoulders.

Just Google HMRC 2019 Loan Charge and follow their settlement option process. For just the 4 month worth of loans probably best doing it yourself.

The 2019 DR loan charge is an option but really not worth having HMRC chasing you for the next 10 years. Best settle.

Ive only 8 months.. but was limited co and Im hearing that this isnt as simple as just declaring this on the return?
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luxCon replied

24 May 2018, 12:19
Oh, lucky lucky you

Only 4 months worth of loan? You are so lucky.

In that case I suggest you register interest to settle with HMRC BEFORE 31st May.

Declare your loans, pay the tax as if they were income in 2016 tax year added to that years tax return income. That way monkey off your shoulders.

Just Google HMRC 2019 Loan Charge and follow their settlement option process. For just the 4 month worth of loans probably best doing it yourself.

The 2019 DR loan charge is an option but really not worth having HMRC chasing you for the next 10 years. Best settle.
Leave a comment:
Honza started a topic Smart Pay Umbrella

24 May 2018, 07:17
Smart Pay Umbrella

Hi guys,

I worked only 4 months in 2016 through SMart Pay umbrella company. I live recently in Canada and out of blue (for me) I have received an email from Knox house trust a week ago or so.

I browsed most the forum here, but due to all the comments, the situation seems to be very unclear and honestly at this point I do not know what to do.

So far I understand:
- scheme I was using was trying to avoid paying income tax
- HMRC wants to tax all this loan part of the income as it was not taxed yet
- Knox house trust gives me PTS Limited and Vanquish options as a tool I can use to handle this situation
- PTS and Vanquish are charging for the services a lot of money for work I could probably do myself
- they offer that I can repay "the loan" and everything is solved. However, HMRC will go after me regarding this loan anyway
- I have until 31 May 2018 to register for settlement with HMRC (but the legalization of the manner is still not entirely complete)

So I have following questions and I hope you can help me with that:
1) what is the fastest and most proper way to solve this
2) what is the best way how to contact HMRC regarding this tax avoidance scheme and what information I need to proceed
3) is there any way to know (calculate) how much money this gonna cost me?
4) is a decision not to repay the loan and not using Knox house trust or/and PTS Limited to solve this smart?

Thank you so much for your help.
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