We have seen a couple of instances of HMRC issuing loan charge demands, along with threats of late interest charges, to users of what we call a double limited scheme.
These schemes were popular toward the end of 2013 and have persisted ever since.
In short, they "work" by your PSC signing up with a promoter to supply your services to the end client/agency.
When money flows from the end client, it goes to your PSC.
Your PSC then passes the bulk of the money on to either the promoter or to a trust that the promoter has set up, sometimes in the name of your PSC.
The trust makes a loan to you and claims it is not taxable.
Many of the major promoters had schemes of this nature. I'd be happy to let you know if yours was one of them if you contact us on info@wttconsulting.co.uk
In the meantime, HMRC says that the payment by your PSC was within the loan charge and that your PSC was an employer. Tax should have been paid by 19th April 2019 and was not. Therefore you owe tax and now interest as well.
Usual threatening noises.
Interestingly also invited to email HMRC as to why you think the liability is not due.
We have ideas as to why the tax is not due. These are part of the Big Group strategy.
Those who are in Big group and have such a letter, please let us know.
If you are not in Big Group, you know where we are. As always the initial call is free and no obligation.
If you are with another adviser and have such a letter - contact them.
If you have no adviser and such a letter, the time may have come to get advice.
