Reply to: Letter from HMRC regarding possible involvement in Tax avoidance

[eek]

Is this a new poster flogging a scheme?

Nope contractor-care .com is an umbrella firm - not one I would recommend but I don’t see anything that screams dodgy.

[Superfly]

Anyone heard of Contractor Care? Are they compliant?

Is this a new poster flogging a scheme?

[Fred Bloggs]

Anyone heard of Contractor Care? Are they compliant?

What are they selling you?

[millie89]

Anyone heard of Contractor Care? Are they compliant?

[DeadDOTAS]

Good afternoon,

Can you advise what happened on this? I have received exactly the same letter from HMRC....the ironic thing being I was actually contracting for HMRC and the recruiter who placed me there introduced me to the "umbrella" I am using.

Am beside myself with worry.

Hi Millie89,

So sorry to hear about your concerns/worry.
I would suggest you reach out to the Loan Charge Action Group (LCAG) via [email protected]

Ideally, please send them

• a brief summary of your individual situation,
• the area in HMRC you work(ed) in and also please let them know
• your recruiter and
• the umbrella company you work(ed) through.

I've been dealing with LCAG for years now, they're only made up of volunteers and they have been a real life-saver.
Most importantly, you are not alone.

All the best.

[millie89]

Good afternoon,

Can you advise what happened on this? I have received exactly the same letter from HMRC....the ironic thing being I was actually contracting for HMRC and the recruiter who placed me there introduced me to the "umbrella" I am using.

Am beside myself with worry.

[eek]

Would be interested to hear more Eek. Wasn’t aware FCSA how a system, presuming you are referring to them being able to detected non compliance in some way???

but then again is the FCSA self created/governed by the the industry and isn’t mandatory?!

Thanks

The FCSA and Professional passport "audits" check paperwork and "processes" - which means it's possible for schemes to get past their audits

[Jumper]

Would be interested to hear more Eek. Wasn’t aware FCSA how a system, presuming you are referring to them being able to detected non compliance in some way???

but then again is the FCSA self created/governed by the the industry and isn’t mandatory?!

Thanks

[malvolio]

I don't think this is a loan charge issue - there are plenty of "schemes" tax avoidance scams doing the rounds at the moment - we saw one a couple of weeks ago that seems to have duped the FCSA audit system...

Gosh! Really...?!?

[winlaw]

Hi

I hope someone can help with this.

I received the following from HMRC and not sure how to respond. I am sole director of my own LTD

19.For each company director please provide the following:

1. A copy of their service contract (c227 Companies Act 2006) - THERE IS NONE
2. If there are no written contracts, the written memorandum setting out the terms of any verbal contract (s228 Companies Act 2006)

Any advise would advice would be greatly appreciated.

[Jumper]

I think most self-employed schemes were much more straightforward than the one you used. Users were just sole traders, and there was no Ltd co, hence no employers NICs.

I guess you'll just have to wait and see what HMRC comes up with as a settlement calculation.

Ah, thanks for clarifying. Will report back once clearer but I’ve based it on the worst case scenario that I’m liable for both personal and employer NICs.

[DealorNoDeal]

Would you not need to pay personal and employer NICs if you were self-employed? I thought those that were in self-employed schemes were also classed as employed too?

I’m still waiting to settle myself and just drawing some comparisons here as I was classed as self-employed as well as employed therefore I believe I’m liable for bother personal NICs contributions as well employer NICs contributions.

I was employed by my limited company but also self-employed with my provider therefore received both a salary, a self-employed income and then my loan in addition.

I think most self-employed schemes were much more straightforward than the one you used. Users were just sole traders, and there was no Ltd co, hence no employers NICs.

I guess you'll just have to wait and see what HMRC comes up with as a settlement calculation.

[Jumper]

I think you only have to pay any NI if you were in a self-employed scheme (class 4 NICS).

In addition to tax, you will have to pay late payment interest.

Would you not need to pay personal and employer NICs if you were self-employed? I thought those that were in self-employed schemes were also classed as employed too?

I’m still waiting to settle myself and just drawing some comparisons here as I was classed as self-employed as well as employed therefore I believe I’m liable for bother personal NICs contributions as well employer NICs contributions.

I was employed by my limited company but also self-employed with my provider therefore received both a salary, a self-employed income and then my loan in addition.

[zulucod]

I think you only have to pay any NI if you were in a self-employed scheme (class 4 NICS).

In addition to tax, you will have to pay late payment interest.

Thanks for this. I also called HMRC today and they confirmed I will have to pay back the Tax, my personal NIC and the late payment fee. I submitted my settlement a month ago and still no update when I called in, apparently they have bit of a delay and could be over 6 weeks.

[DealorNoDeal]

Also for those more aware of how this goes, when settling with HMRC do we have to pay the employers NIC or is it simply just the my unpaid tax and NI?

I think you only have to pay any NI if you were in a self-employed scheme (class 4 NICS).

In addition to tax, you will have to pay late payment interest.