Up to 90%

[DonkeyRhubarb]

I bet none of the schemes around now have been disclosed under DOTAS. APNs will have seen to that.

The new modus operandi will probably be to put virtually nothing on tax returns.

As a result, going forward, HMRC's job will be quite a lot harder.

[TykeMerc]

I bet none of the schemes around now have been disclosed under DOTAS. APNs will have seen to that.

The new modus operandi will probably be to put virtually nothing on tax returns.

As a result, going forward, HMRC's job will be quite a lot harder.

If there's nothing declared on the returns then isn't that Evasion rather than Avoidance? It would be impossible to argue that it was anything other than a cynical evasion of Income Tax and NI's surely?

If HMRC catch up to scheme users operating that way then I can see them pushing hard for a lot more than the tax and penalties. They would be right to as well.

[mudskipper]

These dodgy schemes...

The way I understand it is that the employer (i.e. brolly) is responsible for ensuring the correct tax and NI are deducted, and liable if not. So how come the bill ends up with the scheme user?

[LisaContractorUmbrella]

These dodgy schemes...

The way I understand it is that the employer (i.e. brolly) is responsible for ensuring the correct tax and NI are deducted, and liable if not. So how come the bill ends up with the scheme user?

If the scheme providers are operating an Employee Benefit Trust then, if HMRC were successful in its prosecution, they would be liable for Employer's NIC's I believe but the income tax and Employee's NIC's liability lies with the tax payer

[DonkeyRhubarb]

If there's nothing declared on the returns then isn't that Evasion rather than Avoidance? It would be impossible to argue that it was anything other than a cynical evasion of Income Tax and NI's surely?

If HMRC catch up to scheme users operating that way then I can see them pushing hard for a lot more than the tax and penalties. They would be right to as well.

Not registering a scheme with DOTAS is sailing very close to the wind but HMRC don't seem to be doing much to police this.

I guess if people are receiving loans then the argument may be that they are not taxable income which needs to be declared. Also, if users are on a small salary through PAYE they might not even have to file a self-assessment.

With all the new rules in place, it's almost inevitable that schemes will become more hidden.

[centurian]

I guess if people are receiving loans then the argument may be that they are not taxable income which needs to be declared. Also, if users are on a small salary through PAYE they might not even have to file a self-assessment.

When you got a loan from a bank, was there any need to declare a loan on your self-assessment form. When your parents lent you some money, did this need to be declared.

Will this argument fly? Who knows. But it'll be part of the sales pitch the scheme providers will use