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Previously on "Letter from HMRC regarding possible involvement in Tax avoidance"
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Originally posted by jimmy899 View PostActually what happened is the umbrella out of the blue sent me a P45 and wished me luck in the future (this happened in between these two HMRC letters).
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Actually what happened is the umbrella out of the blue sent me a P45 and wished me luck in the future (this happened in between these two HMRC letters).
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Originally posted by jimmy899 View PostSo a brief update.
Never heard back from HMRC in regards to the authenticity to the letter, despite they assuring me during the phonecall they will get in touch.
Instead i did get another letter from them asking me to provide documentation, correspondence, bank statements, payslips relating to my association with this umbrella company so that they can check if i have paid the right amount of tax. And they are asking for this for the period between april 2020 and august 2021.
Anyone had similar request from them?
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So a brief update.
Never heard back from HMRC in regards to the authenticity to the letter, despite they assuring me during the phonecall they will get in touch.
Instead i did get another letter from them asking me to provide documentation, correspondence, bank statements, payslips relating to my association with this umbrella company so that they can check if i have paid the right amount of tax. And they are asking for this for the period between april 2020 and august 2021.
Anyone had similar request from them?
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Originally posted by Fred Bloggs View Post
After your edit - OP says he knew about dodgy schemes. So he sensibly chose PAYE. Where he went a bit awry, was not scratching a bit deeper below the surface veneer. Of little consequence now. OP made a sensible decision and I recommend he draws a line under this and moves on.
I still think HMRC are playing guilty by association and shaking the tree and see what falls out. OP should say that they were offered two options and went with the straightforward PAYE option because they didn't want any potential complications and understood it from their own visit to an umbrella calculator site.
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Originally posted by eek View Post
It's worth saying that I don't think any broker was involved - it was a mere sales pitch to identify which way to direct the OP.
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Originally posted by Fred Bloggs View PostBalance of probabilities? In my opinion, you were on the money with your option 2. OP has had a very lucky close encounter that could have bitten him very hard if he had been a bit greedier/naive than he was.
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Originally posted by eek View PostMy point was that back in March beyond the "broker" there was little to say that "Turnkey" was dodgy
And while we know in detail how umbrella firms work we cannot assume other people know what to watch out for.
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Originally posted by eek View PostMy point was that back in March beyond the "broker" there was little to say that "Turnkey" was dodgy
An apparently successful business offering PAYE from 2018 has no incentive to go dodgy and eventually trash it's reputation. A PAYE employment business cannot afford to pay a broker (a scheme promoter) commission.
On the otherhand, a dodgy brolly offering "solutions" from 2018 has every incentive to pay brokers/promoters and to offer some PAYE payroll if someone asks for it.
Balance of probabilities? In my opinion, you were on the money with your option 2. OP has had a very lucky close encounter that could have bitten him very hard if he had been a bit greedier/naive than he was.
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Originally posted by eek View Post
I'm not so sure - the application to strike off the second company was made at the end of April (and refused in June) while the OP was looking at this back in March.
I suspect back in March anywhere that would raise alarm bells.
Subject brolly was incorporated in October 2018. OP was offered a standard PAYE employment deal or a scheme earlier this year. He wisely chose PAYE. OP mentions a "broker". A "broker" being involved in this smells to high heaven. "Brokers" promote schemes, there is no business in promoting just PAYE. OP was very lucky this promoter/broker actually offered PAYE at all.
Likely that many users routed through this "broker" will have chosen the scheme over PAYE. Hence, HMRC are thinking that everyone employed with the subject brolly is a scheme user.
Makes perfect sense to me. Again, well done to the OP who was sensible is his choice. But now, I would draw a line under this by quitting this brolly and starting with a new, fully compliant non-scheme associated brolly on Monday. With a line drawn under this and a P45 to show Hector, the OP might just be home and dry if he does as I suggest?
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Originally posted by Fred Bloggs View Post
It looks absolutely like option 2. The OP was offered a "solution" but wisely rejected it. At this point I would advise the OP to immediately change brollies to one with no possible connection to a possible scheme provider. If only to draw a line under this. OP seems to be pretty sensible. But it seems very careful due diligence might have rung alarm bells about subject brolly.
I suspect back in March anywhere that would raise alarm bells.
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