Reply to: HMRC Heavies knocking at my door

[dammit chloe]

A propos of nothing, @BaloPig 's twitter time line is interesting.

[BrilloPad]

It happened about 10/11 years ago as part of a DTA scheme. It was a HMRC mix up. Still took them 24 hours to back down.

[Superfly]

Also last year:

HMRC makes six loan charge arrests
UK tax authority swoops on promoters of ‘fraudulent’ schemes

Kate Beioley in London May 17 2019

The UK tax authority has arrested five men and a woman for promoting fraudulent schemes designed to evade paying the loan charge, in its most serious intervention over the controversial levy.

HM Revenue & Customs said it arrested two individuals on May 10 on suspicion of promoting a scheme “designed to get around the loan charge, allowing individuals to evade paying taxes”.

In a separate criminal investigation, on Tuesday four other people were arrested on suspicion of “using fraudulent methods to circumvent the loan charge and the taxes due” and are “suspected of enabling others to do the same”.

All six have been released pending investigation.

Announced in 2016, the loan charge cracked down on loan-based tax avoidance schemes used by tens of thousands of contractors, which HMRC regards as “disguised remuneration” to reduce income tax and national insurance contributions.

People were given until April 2019 to either settle with HMRC, repay the loans or face paying tax on up to 20 years of income in a single tax year. Many are facing six-figure tax bills and fear bankruptcy.

HMRC warned two years ago that some promoters claimed to have created schemes that enabled users to get out of the loan arrangements and avoid the loan charge, in return for a fee.

One example highlighted by the tax authority involved promoters asking individuals to enter into a “bet” with the trust that granted them the loan. The terms of the bet meant the individual was almost certain to win, using the winnings to repay the loan. The tax authority stressed on Friday that such schemes did not work, and that tax evasion was illegal.

“We strongly encourage people not to use loan-busting schemes and methods,” an HMRC spokesman said. “They clearly don’t work and people run the risk of losing more money and being involved in fraud. As we always say — if it looks too good to be true, then it undoubtedly is.”

The arrested include a 54-year-old man from Guildford, a 58-year-old man from Stevenage, a 50-year-old man from Stratford-upon-Avon, a 78-year-old man from south London, a 45-year-old woman from Tonbridge and a 50-year-old man from Sevenoaks.

HMRC officers also seized personal records from business and residential properties in London, Guildford, Stevenage, Stratford-upon-Avon, Sevenoaks and Tonbridge, it said.

The interventions are the latest action in HMRC’s investigation of fraud related to disguised remuneration schemes.

source Subscribe to read | Financial Times

[piebaps]

Is this a first for HMRC?

Can they now check out IoM...(probably not)

It appears to be already happening and has been for some time.

2011 Police raid Isle of Man tax firm offices in fraud case | International Adviser (although it didn't end well for HMRC)

2013 Isle of Man Government - National Insurance warning to employment businesses

2016 Isle of Man Judgments Online

There appears to be regular cross working between the IOM and UK authorities - although we can never know for sure until its revealed in a Court case on either side of the Irish Sea.

[eek]

I just so want this to be any well-known scheme promoter getting it in the neck.

It's not - none of the people arrested match his company house details...

[why]

It will certainly put the "willy's up'em", this will soon start to get around that lot. I hope some are sweating.

Maybe Mods should sticky that press release?

[Hanbanthankyoumam]

Is this a first for HMRC?

Can they now check out IoM...(probably not)

It's an entirely separate revenue system, so I'd say their powers would be limited

[NotAllThere]

I just so want this to be any well-known scheme promoter getting it in the neck.

[why]

Is this a first for HMRC?

Can they now check out IoM...(probably not)

[cojak]

And just a note to anyone thinking about it.

Any speculation will be removed from this forum.

[Ian Richardson GT Leeds]

could be linked to this?

Five promoters arrested on suspicion of loan charge fraud | HM Revenue & Customs (HMRC)

"More than 100 HM Revenue and Customs (HMRC) officers searched business premises in Birmingham and further addresses in Coventry, Worcestershire, Northumberland, Buckinghamshire and Northern Ireland. Officers seized computers, other digital devices, as well as business and personal records."

[webberg]

HMRC press release at 15:48 today.

5 people have been arrested for fraud connected with schemes to avoid the loan charge.

A sixth is attending interview voluntarily, under caution.

Connected?

[cojak]

Hi All

Yes, a lot has transpired since the visit. I know what it's about now. Not able to discuss it on here I'm afraid but just to be clear, it's not a scam, they were HMRC revenue officers and yes Webberg, they are not after me as such but after one of a number of third parties I have had dealings with during this rollercoaster ride from hell.

Thanks for all of your support, concern and interest.

Bear

Well, good luck with it all bear1. I hope you gain some satisfaction at the end of it.

[bear1]

I've yet to see the letter so am guessing a bit here.

If HMRC are looking at somebody for CRIMINAL offences, their usual MO is to do all their research and background preparation out of sight of the target and then to arrive, with police support, with a warrant to search and arrest.

To turn up and knock politely and then to go away is unheard of.

This may be a tactic employed by debt collectors perhaps? I read the various comments here about the solicitors appointed by Felicitas but I see no suggestion that they have ever employed such blatantly intimidatory tactics.

I do know that impersonating an HMRC officer is a criminal act (see cases in the past involving a gentleman who designed tax schemes and who had a "colourful" personal life). As such I cannot imagine a solicitor or debt collector using this sort of tactic.

So I'm a bit baffled to be honest.

If I can see the letter, that may answer come questions.

Hi All

Yes, a lot has transpired since the visit. I know what it's about now. Not able to discuss it on here I'm afraid but just to be clear, it's not a scam, they were HMRC revenue officers and yes Webberg, they are not after me as such but after one of a number of third parties I have had dealings with during this rollercoaster ride from hell.

Thanks for all of your support, concern and interest.

Bear

[lowpaidworker]

I’d be skeptical. Her Majesties Customs and Revenues have incredible powers largely inherited from the Customs side. Unless the scheme is linked to large scale Tax evasion or Money Laundering I would doubt any contractor would have the heavies in. Even if it was they would be after scheme devisors rather than an unknowing contractor using the scheme. I would imagine if they want your evidence they would be rather nice about it.

HMRC are a lot of things but not stupid.