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m786
12th January 2015, 15:09
Hi,
I am one of you who received the HMRc enquiry letter (section 9a) for my return.
HMRC says that I was with IQ contracts which was using some sort of loan scheme.
Thay are asking all sort of information including my bank statements.
I have spoken to CHSlimited which was set up by IQ to help ppl like us. They are advising no to reply to HMRC as its just the voluntary request from HMRC not the formal request. They will not provide any legal assistant.

My accountant advising me to provide the info.
I am not sure how to deal with this.
Can some one help.

Many Thanks.

jbryce
12th January 2015, 15:49
Hi,
I am one of you who received the HMRc enquiry letter (section 9a) for my 2011-13 tax return enquiry.
I was with Winchester IQ contracts between oct-2012 march 2013.
HMRC says that I was with IQ contracts which was using some sort of loan scheme.
Thay are asking all sort of information including my bank statements.
I have spoken to CHSlimited which was set up by IQ to help ppl like us. They are advising no to reply to HMRC as its just the voluntary request from HMRC not the formal request. They will not provide any legal assistant.

My accountant advising me to provide the info.
I am not sure how to deal with this.
Can some one help.

Many Thanks.

I think you should approach CH and present them with your accountant's view and see what they say.

regron
12th January 2015, 16:11
I have also received one of these (different scheme though) but mine had a deadline date to present the information to them by. My promoter (luckily and thankfully) has dealt with this on my behalf. If yours also has a deadline date, I personally wouldn't recommend ignoring it !!!

m786
12th January 2015, 17:44
I think you should approach CH and present them with your accountant's view and see what they say.

Hi, Thanks for your reply.
I have told CH what my accountant says but he still thinks that I dont need to reply HMRC until the formal request.
I am bit worried at not replying to HMRC because CH is not going to support me legally if HMRC takes me to the court.

m786
12th January 2015, 17:46
I have also received one of these (different scheme though) but mine had a deadline date to present the information to them by. My promoter (luckily and thankfully) has dealt with this on my behalf. If yours also has a deadline date, I personally wouldn't recommend ignoring it !!!

Yes, I have a deadline too. what did your promoter do?
Did he reply to HMRC on your behalf or waited for Formal request.

regron
12th January 2015, 17:48
They requested additional time from HMRC direct and are now dealing with it on my behalf, along with others in the same boat.

sk13
24th February 2015, 11:49
Hi,
I am one of you who received the HMRc enquiry letter (section 9a) for my return.
HMRC says that I was with IQ contracts which was using some sort of loan scheme.
Thay are asking all sort of information including my bank statements.
I have spoken to CHSlimited which was set up by IQ to help ppl like us. They are advising no to reply to HMRC as its just the voluntary request from HMRC not the formal request. They will not provide any legal assistant.

My accountant advising me to provide the info.
I am not sure how to deal with this.
Can some one help.

Many Thanks.

Bump! Did you get any reminder letter from HMRC. I have! :(

webberg
25th February 2015, 09:27
Bump! Did you get any reminder letter from HMRC. I have! :(

It is NEVER - under any circumstances - sensible to ignore a request from HMRC especially if accompanies by a deadline. At the very least this could lead to increased penalty for non cooperation.

If you have a formal 9A enquiry notice, HMRC is ENTITLED to ask for information. There are limits to what they can ask for. IN short it's anything that helps them establish you tax liability.

That would normally EXCLUDE information such as bank accounts, credit card statements etc.

If you are in any doubt about replying I would say do so, supplying the information to hand that is directly about the scheme (sign up papers, receipts or other documents accompanying payments, etc) and ask HMRC to explain why they want anything else.

Tardisrepairman
13th March 2015, 12:39
HMRC have demonstrated their ability to introspectively declare schemes exploiting loopholes in legislation as illegal and pursue you for money owed. It sounds very risky.

Scruff
30th March 2015, 13:49
HMRC have demonstrated their ability to introspectively declare schemes exploiting loopholes in legislation as illegal and pursue you for money owed. It sounds very risky.

I just got cold-called by "h t t p://w w w.winchestercontracts.co.uk/" - short shrift given

starlitebreaker
24th November 2015, 10:08
I have also received one of these (different scheme though) but mine had a deadline date to present the information to them by. My promoter (luckily and thankfully) has dealt with this on my behalf. If yours also has a deadline date, I personally wouldn't recommend ignoring it !!!

Hi,

I have received a similar letter from HMRC yesterday for the tax year April 2013-14. How did you get on with dealing this issue. I have used IQ for 8 months and now am with my own limited company. According to the P11 form I have been paid £5800 as loan in the year 2013-14. Could someone please help me with any promoter who are experts in dealing such cases.

Many thanks

webberg
25th November 2015, 09:00
Hi,

I have received a similar letter from HMRC yesterday for the tax year April 2013-14. How did you get on with dealing this issue. I have used IQ for 8 months and now am with my own limited company. According to the P11 form I have been paid £5800 as loan in the year 2013-14. Could someone please help me with any promoter who are experts in dealing such cases.

Many thanks

Look here

http://forums.contractoruk.com/hmrc-scheme-enquiries/110572-hmrc-next-steps.html

Promoters are very definitely NOT experts in this area.

Sharkoots
8th December 2015, 19:18
I too have received a similar enquiry from HMRC and used IQContracts in 13/14.

CHS has more or less advised me to question HMRC on why they are asking for information which has already been provided through my P11D and tax return. Furthermore, IQ were DOTAS registered which means HMRC already know how they operate so a lot of the questions they've asked me are things they already know.

Did anyone get independent advice from a tax specialist? Or how did you respond this this enquiry?

It's worth adding that for the 13/14 tax year, IQContracts to date have been no help other than pointing me in the direction if CHS, who will only supply generic advice.

PS. I'm off these schemes now.

webberg
9th December 2015, 09:04
I too have received a similar enquiry from HMRC and used IQContracts in 13/14.

CHS has more or less advised me to question HMRC on why they are asking for information which has already been provided through my P11D and tax return. Furthermore, IQ were DOTAS registered which means HMRC already know how they operate so a lot of the questions they've asked me are things they already know.

Did anyone get independent advice from a tax specialist? Or how did you respond this this enquiry?

It's worth adding that for the 13/14 tax year, IQContracts to date have been no help other than pointing me in the direction if CHS, who will only supply generic advice.

PS. I'm off these schemes now.

1. It is not enough that HMRC has the information from third parties. They have asked YOU and YOU are now obliged to supply the information.

2. Have you ever seen a DOTAS submission? It's very basic and DOES NOT contain the sort of detail that HMRC want and are entitled to ask for. The form will NOT allow HMRC to make a decision.

I fear that CHS and IQ are playing dodge ball with you. IQ I can sort of understand but if CHS are meant to be professional advisers registered with and subject to the rules of a professional body (ICAEW/CIOT/etc) then they are falling well short of their obligations. (I have no information of what/who CHS are).

Any competent professional adviser can help you.

Some are more specialist than others and these threads will have the details you need.

Vinu
4th January 2016, 15:17
Hi,

I received the same letter now for the year 2013-2014. I was with IQ contracts for the year 2013-2014. They gave a deadline to respond with all my payslips and bank statements. CHS advised not to reply back.

Please tell me, how did you resolve the problem?

Thanks.


Hi,
I am one of you who received the HMRc enquiry letter (section 9a) for my return.
HMRC says that I was with IQ contracts which was using some sort of loan scheme.
Thay are asking all sort of information including my bank statements.
I have spoken to CHSlimited which was set up by IQ to help ppl like us. They are advising no to reply to HMRC as its just the voluntary request from HMRC not the formal request. They will not provide any legal assistant.

My accountant advising me to provide the info.
I am not sure how to deal with this.
Can some one help.

Many Thanks.

Les Taylor
10th January 2016, 10:22
Im am in same situation for 2013-14 and not sure what to do. If anyone else is in same situation ( I assume loads are ) then we should group together and get legal advice.





Hi,
I am one of you who received the HMRc enquiry letter (section 9a) for my return.
HMRC says that I was with IQ contracts which was using some sort of loan scheme.
Thay are asking all sort of information including my bank statements.
I have spoken to CHSlimited which was set up by IQ to help ppl like us. They are advising no to reply to HMRC as its just the voluntary request from HMRC not the formal request. They will not provide any legal assistant.

My accountant advising me to provide the info.
I am not sure how to deal with this.
Can some one help.

Many Thanks.

lara400
5th February 2016, 10:01
went through the same thing with Sanzar that I am now going through with Winchester...basically...they open an enquiry asking to send info to HMRC...CH satte do not send anything...I don't....then 18 months later you get a APN/Settlement.....accept it...your going to get it so take it on the chin and start saving...I already have 90% of the money saved (I kind of guess how much they will want based on Sanzar experience) so whenever HMRC contact me (which is normally in the summer) I just want to settle and be done with...

LandRover
5th February 2016, 14:52
went through the same thing with Sanzar that I am now going through with Winchester...basically...they open an enquiry asking to send info to HMRC...CH satte do not send anything...I don't....then 18 months later you get a APN/Settlement.....accept it...your going to get it so take it on the chin and start saving...I already have 90% of the money saved (I kind of guess how much they will want based on Sanzar experience) so whenever HMRC contact me (which is normally in the summer) I just want to settle and be done with...

I understand how you feel, in that want to get on with your life and draw a line in this. Big Group have taken a more pragmatic approach of looking at a settlement with HMRC, they have already had a meeting with HMRC and have independence in not being affiliated to any of the scheme providers.

aimeerose
8th July 2016, 15:43
Hi All,
I used IQ Contractors 2012-2013 and 2013-2014 - HMCR have just contacted me and asked me to file tax returns for these two years.... has anyone had issues with the loan being considered taxable? I'm assuming a APN will be issued once I have filed the returns.
Help!

webberg
11th July 2016, 08:06
Hi All,
I used IQ Contractors 2012-2013 and 2013-2014 - HMCR have just contacted me and asked me to file tax returns for these two years.... has anyone had issues with the loan being considered taxable? I'm assuming a APN will be issued once I have filed the returns.
Help!

Get advice from a tax adviser.

You are obliged to complete the returns if you have the notice and to do so before the deadline given.

HMRC's position is that "disguised remuneration" loans are taxable income. Spend a hour reading these threads.

An APN can be issued ONLY where there is an enquiry open (unlikely if HMRC doesn't have a return), a claim has been made that a tax advantage has arisen (unlikely if HMRC doesn't have a return), the scheme has been disclosed as a tax avoidance scheme (did you get such a notice from the promoter?).

Get advice.

TZ46
14th July 2016, 11:14
I have also had a letter for tax returns from HMRC period 2013/14 and 2014/15, went to see an accountant he advised me to leave IQ asap (even though I use them as an employee umbrella company), I gave him my p11,p45 and p60 for that period.

Really scared as I have no money to HMRC if they come back with APN or something like that. my current contract finished 30th June 2016. So will not use IQ anymore but I am worried as I will probably need to do tax return for next year 2016/17.

For the period that has been requested by HMRC at present my accountant reckons i'll prob pay 17k (which I don't have).

any legal advice on here can some one advise me on what to do please.

Thanks

T

webberg
14th July 2016, 12:55
You need to spend some time reading through the threads - it will be an hour well spent.

In short, HMRC believe that ALL the payments you received from the promoter should be treated as taxable income.

They are preparing litigation against some schemes and that is advanced in a couple of instances. Whether that happens later this year or is delayed by the April 2019 proposed tax charge (see below), we wait and see.

Litigation groups, formed by users of particular schemes, are available. I don't know if this scheme has one. If not, then as has been suggested, somebody needs to grasp the nettle and form one. The first task would be to raise some funds for an initial legal opinion.

Until a case is taken on a scheme that is very similar to the one you used, and a decision reached, perhaps 5 to 7 years, you will not know if HMRC is correct. Costs of litigation groups vary a lot but going all the way in Court is expensive, perhaps £700,000 t0 £1,000,000. Obviously it depends on how many are in (and stay in) the group through the process as to individual cost.

The other option is to reach a settlement. That can be done individually or as part of a group.

Individual settlement at the moment is basically to pay the tax HMRC say is due, plus interest. They are not moving from that position.

Settlement via a group means that some proper research and guidance can be obtained and discussions held with HMRC as to the outcomes available. Membership of such groups tends to be less expensive.

There is no guarantee that a litigation or a settlement group will reach a position of agreeing the liability.

There is a guarantee that HMRC will use their powers to issues APNs where they can, assessments where they can't, make requests for information and tax returns and generally make life as uncomfortable as possible. Whether that is part of a deliberate policy of intimidation as some would have you believe, or part of the agency doing it's job, is for you to judge. Certainly there are instances when through policy or incompetence, HMRC strays over the line in terms of exercising their powers.

In an attempt to draw a line under the EBT sector, a new tax charge in April 2019 is proposed. Details are thin but it means that outstanding loans as at that date will be taxed, regardless of certain protections currently guaranteed for taxpayers. This is being resisted in terms of application (the war against introduction never got started as the law IS arriving).

This charge may render litigation/settlement irrelevant. We don't know yet and will not know until we see the detail promised for this "summer".

So you can choose to stand alone, join a litigation group is there is one still open, join a settlement group or all of the above.

The only guarantee is that HMRC will want to extract cash from you as soon as they can. Eventually they may be forced to give all or some of it back, or you might be asked to pay more.

Find some other people in the same arrangement, speak/email them, make a plan, get advice.

timB
24th July 2016, 11:18
I have also received the HMRc enquiry letter (section 9a) for my return.
HMRC says that I was with IQ contracts which was using some sort of loan scheme. I have contacted IQ Contracts who have referred me to a company called Previese does anyone have any experience of them ?

How have contractors who received an enquiry letter this time last year dealt with this ?

Anders7777
29th July 2016, 19:40
Anyone who is contracted with IQ contracts - known as Darwin or Umbrella Requirements needs to get out/leave ASAP - this was advice given to me by an Accountant in London earlier this week as I have just received a letter from HMRC requesting 3 years of self assessment forms and am therefore not a happy bunny...they even sent me the link to this forum and post - if we gathered enough people who worked for IQ based in the IOM and the UK - we could put a case together to bring them to book...I am cut and pasting this post which has obviously been written to assist unlikely souls who thought that they were using a legal and above board company to be duly paid through and this I am afraid is far from the truth...

You need to spend some time reading through the threads - it will be an hour well spent.

In short, HMRC believe that ALL the payments you received from the promoter should be treated as taxable income.

They are preparing litigation against some schemes and that is advanced in a couple of instances. Whether that happens later this year or is delayed by the April 2019 proposed tax charge (see below), we wait and see.

Litigation groups, formed by users of particular schemes, are available. I don't know if this scheme has one. If not, then as has been suggested, somebody needs to grasp the nettle and form one. The first task would be to raise some funds for an initial legal opinion.

Until a case is taken on a scheme that is very similar to the one you used, and a decision reached, perhaps 5 to 7 years, you will not know if HMRC is correct. Costs of litigation groups vary a lot but going all the way in Court is expensive, perhaps £700,000 t0 £1,000,000. Obviously it depends on how many are in (and stay in) the group through the process as to individual cost.

The other option is to reach a settlement. That can be done individually or as part of a group.

Individual settlement at the moment is basically to pay the tax HMRC say is due, plus interest. They are not moving from that position.

Settlement via a group means that some proper research and guidance can be obtained and discussions held with HMRC as to the outcomes available. Membership of such groups tends to be less expensive.

There is no guarantee that a litigation or a settlement group will reach a position of agreeing the liability.

There is a guarantee that HMRC will use their powers to issues APNs where they can, assessments where they can't, make requests for information and tax returns and generally make life as uncomfortable as possible. Whether that is part of a deliberate policy of intimidation as some would have you believe, or part of the agency doing it's job, is for you to judge. Certainly there are instances when through policy or incompetence, HMRC strays over the line in terms of exercising their powers.

In an attempt to draw a line under the EBT sector, a new tax charge in April 2019 is proposed. Details are thin but it means that outstanding loans as at that date will be taxed, regardless of certain protections currently guaranteed for taxpayers. This is being resisted in terms of application (the war against introduction never got started as the law IS arriving).

This charge may render litigation/settlement irrelevant. We don't know yet and will not know until we see the detail promised for this "summer".

So you can choose to stand alone, join a litigation group is there is one still open, join a settlement group or all of the above.

The only guarantee is that HMRC will want to extract cash from you as soon as they can. Eventually they may be forced to give all or some of it back, or you might be asked to pay more.

Find some other people in the same arrangement, speak/email them, make a plan, get advice.

I have spent the last week going to hell and back and have now engaged an accountant to assist me which is costing around 450 pounds - I need help with this, as self assessment forms are not my area of expertise - this is saving peoples lives in the NHS etc...during my journey of going to hell and some of the way back I learnt something very useful about HMRC and this is that they/it do not like the word is "MP" - I wrote to my local MP - a letter indicating that I was troubled as to why HMRC are sending self assessment form to PAYE employees who pay tax and NI etc and who are working through an Umbrella company as a contractor. Might I suggest that you and any one else does the same as if enough letters are sent then we have a voice in parliament. Write the letter with intent and keep it simple and see what happens....

needmorstuff
30th July 2016, 18:42
So can I ask what people are putting on the self assessments? if you have a p11d bik figure for the loan you put that obviously, but what are people putting extra? are you declaring the loan amounts? if so are you putting them in details like

loan 1 amount date
loan 2 amount date
loan 3 amount date
loan 4 amount date

etc.

are you putting any words around this like

"I received these loans from ???? (employer/trust/trustee??) on an interest free basis for x years etc..."

or just the figures etc..

anwesha
31st July 2016, 09:30
Hi Guys
How this is resolved finally? Did any of guys finally ended up paying dues to HMRC? How they calculate the tax and how much penalty typically they do charge?
Thanks
Amit

Hi,
I am one of you who received the HMRc enquiry letter (section 9a) for my return.
HMRC says that I was with IQ contracts which was using some sort of loan scheme.
Thay are asking all sort of information including my bank statements.
I have spoken to CHSlimited which was set up by IQ to help ppl like us. They are advising no to reply to HMRC as its just the voluntary request from HMRC not the formal request. They will not provide any legal assistant.

My accountant advising me to provide the info.
I am not sure how to deal with this.
Can some one help.

Many Thanks.

webberg
1st August 2016, 08:46
Be careful with what you put on a tax return or indeed leave out. It's a minefield and one in which HMRC is often planting mines where you've already walked and then claimed that you were blown up several years ago.

There is no substitute for doing your research and when you reach the end of that, if you're still confused or unsure, get professional advice.

ASB
1st August 2016, 09:14
if you're still confused or unsure, get professional advice.

And if not confused or unsure then worry about what one has missed. :mad:

Reider
8th August 2016, 17:28
I was with IQ from April 2012 to September 2015.

I have now been asked by HMRC for SA's for years 2012/13, 2013/14 & 2014/15.

According to CHS, the schemes I was in was DOTAS for only the year 2013/14. My understanding is that this will be the only year I will receive an APN for.

Can anyone advise if this is correct?

Thanks in advance.

needmorstuff
8th August 2016, 19:12
I was with IQ from April 2012 to September 2015.

I have now been asked by HMRC for SA's for years 2012/13, 2013/14 & 2014/15.

According to CHS, the schemes I was in was DOTAS for only the year 2013/14. My understanding is that this will be the only year I will receive an APN for.

Can anyone advise if this is correct?

Thanks in advance.


I would say that is a reasonable assumption.

webberg
8th August 2016, 19:28
I was with IQ from April 2012 to September 2015.

I have now been asked by HMRC for SA's for years 2012/13, 2013/14 & 2014/15.

According to CHS, the schemes I was in was DOTAS for only the year 2013/14. My understanding is that this will be the only year I will receive an APN for.

Can anyone advise if this is correct?

Thanks in advance.

The IQ schemes over the years appear to share some common features but some were disclosed and some not.

Many of us are arguing that a scheme that is notified under DOTAS, may not be actually notifiable and as such an APN may not be appropriate or valid.

That is a two way street.

Although I've not heard on HMRC raising an APN where the scheme was not actually notified, the argument above could be reversible?

needmorstuff
8th August 2016, 20:34
The IQ schemes over the years appear to share some common features but some were disclosed and some not.

Many of us are arguing that a scheme that is notified under DOTAS, may not be actually notifiable and as such an APN may not be appropriate or valid.

That is a two way street.

Although I've not heard on HMRC raising an APN where the scheme was not actually notified, the argument above could be reversible?

there seem to be clear rules for APN's - never heard this one before.

webberg
9th August 2016, 09:05
there seem to be clear rules for APN's - never heard this one before.

There are three conditions plus rules about content of the notice.

One of the conditions (C) requires that the tax advantage arises in respect of a scheme that is "notifiable" under the DOTAS legislation.

Many promoters registered their offerings under DOTAS because failing to do so risked a large fine.

Later (around 2011) many promoters did not register their wares under DOTAS. I won't speculate as to all the reasons for this but I suggest that as later iterations of the rules included a waterfall of who was liable to register a scheme and users appeared on that list, perhaps they felt that they could risk the fine, because it might fall on another party?

Anyway, to be notifiable, a scheme needs to have met certain "hallmarks" and not to be exempt under the rules. As was proven when HMRC withdrew several thousand APNs, some schemes were notified but were later found not to be notifiable.

So the rules are simple (the APN scheme is designed to extract money) but that simplicity means that each word used has to be given due weight.

Reider
12th August 2016, 20:28
Thanks for the responses. It really helps to know that there are a lot of good people out there happy to share their knowledge.

I am in the process of joining the Big Group. The more we come together the stronger we become.

DotasScandal
12th August 2016, 22:07
On the above, also see this (https://www.dotas-scandal.org/more-on-hmrcs-latest-apn-mass-withdrawal/)
Looking forward to seeing you in BG.

pegzyisdeed
26th September 2016, 13:53
Hi Everyone, first post on this forum.

I've been contracting through IQ for just under a year and I'm now about to start a new contract where Id planned to keep using them. I'm obviously alarmed at this thread and others which I've seen on here.

I've not received any letter from HMRC as yet, should I be worried? Is it just a matter of time? I now feel rather silly and naïve as the set up was far too good to be true.

Would It be advisable to just sever all ties completely with them now as it appears HMRC are out to get them.

Any advice would be welcome.

carling
26th September 2016, 15:04
Hi Everyone, first post on this forum.

I've been contracting through IQ for just under a year and I'm now about to start a new contract where Id planned to keep using them. I'm obviously alarmed at this thread and others which I've seen on here.

I've not received any letter from HMRC as yet, should I be worried? Is it just a matter of time? I now feel rather silly and naïve as the set up was far too good to be true.

Would It be advisable to just sever all ties completely with them now as it appears HMRC are out to get them.

Any advice would be welcome.

Get out of any contractor scheme immediately.
You will almost certainly be getting some brown envelopes from HMRC at some point.
Switch to a genuine bog standard umbrella or go Ltd, anything else is just not worth the years of aggro it will create.

DonkeyRhubarb
26th September 2016, 15:38
Get out of any contractor scheme immediately.
You will almost certainly be getting some brown envelopes from HMRC at some point.
Switch to a genuine bog standard umbrella or go Ltd, anything else is just not worth the years of aggro it will create.

WHS

If it's a loan scheme, where you get "paid" in loans, then you will also have the new 2019 HMRC loan tax charge to contend with.

It would also be totally negligent of this company to carry on running the scheme when users are more than likely to be hit by the charge. They are potentially leading people into financial ruin, not that they probably give a stuff mind you.

It makes me sick that companies are still operating these schemes. In the current climate, they are nothing but a scam.

DotasScandal
26th September 2016, 16:02
+1 to all of the above.

Run away NOW and do not look back.

pegzyisdeed
26th September 2016, 16:10
thanks for the reply, I was previously with a LTD set up however a colleague of mine put me onto IQ because it was such an easy set up. I'm feeling rather silly now as things that often seem too good to be true are often just that. I've heard a lot of people on here talking about the letters, however I've not read of someone being taken to court and being charged. I'd assume this must all take time.

So from these responses you all think I should stop billing via the Umbrella which is attached to IQ and go back down the LTD route?

DotasScandal
26th September 2016, 16:42
I've not read of someone being taken to court and being charged. I'd assume this must all take time. ?

And you will never hear of it.
Your assumption is wrong, for here the matter is not one of time. HMRC do not have a legal leg to stand on and they do NOT want the matters determined by courts, because it will then become apparent that this is all just an unlawful cash grab on their part.
Contrary to the rumor they are trying to spread, HMRC have never won a case against a correctly planned and excuted "contractor scheme".
This is why they have to resort to stunts like the retrospective "2019 charge"

How often does your Government lie to you? (https://www.dotas-scandal.org/how-often-does-your-government-lie-to-you/)

pegzyisdeed
26th September 2016, 17:19
So what are u saying? I should leave the scheme and resort to LTD or not care and hope I don't get caught up in this 2019 litigation? I apologise in advance if I've totally misread your post. I'm new to this issue and haven't spent the required time reading up.

Delendog
26th September 2016, 17:31
So what are u saying? I should leave the scheme and resort to LTD or not care and hope I don't get caught up in this 2019 litigation? I apologise in advance if I've totally misread your post. I'm new to this issue and haven't spent the required time reading up.

Leave the scheme ASAP go limited. Don't be surprised when you get a letter from HMRC saying you are expected of using a tax avoidance scheme.

DotasScandal
26th September 2016, 17:43
So what are u saying? I should leave the scheme and resort to LTD or not care and hope I don't get caught up in this 2019 litigation? I apologise in advance if I've totally misread your post. I'm new to this issue and haven't spent the required time reading up.

Just told you to run away from your scheme and not look back. What's done is done, but now you've realised that you're in a hole, stop digging.
Once you've done that, read up on the situation and consider joining Big Group (http://www.wttbiggroup.co.uk). If you speak to them they'll tell you if it's suitable for you. And don't worry, cause there are thousands like you!

pegzyisdeed
26th September 2016, 18:58
Thanks for the advice, I think I'll read up on the big group.

rado
7th November 2016, 10:55
I too have received a similar enquiry from HMRC and used IQContracts in 13/14.

CHS has more or less advised me to question HMRC on why they are asking for information which has already been provided through my P11D and tax return. Furthermore, IQ were DOTAS registered which means HMRC already know how they operate so a lot of the questions they've asked me are things they already know.

Did anyone get independent advice from a tax specialist? Or how did you respond this this enquiry?

It's worth adding that for the 13/14 tax year, IQContracts to date have been no help other than pointing me in the direction if CHS, who will only supply generic advice.

PS. I'm off these schemes now.

Hello,
So Did you respond back to HMRC and what was the outcome?

jbryce
7th November 2016, 17:21
Hello,
So Did you respond back to HMRC and what was the outcome?

I doubt if anyone will get a reply back from HMRC that quickly. If you are in the same boat, I'd suggest you join Big Group....plenty of us over there....

DotasScandal
7th November 2016, 19:34
Also, it's unlikely people will share their experience on this public forum read by HMRC :wave:
The Big Group forum is where it's at.

Barrygbr
2nd March 2017, 18:03
Im am in same situation for 2013-14 and not sure what to do. If anyone else is in same situation ( I assume loads are ) then we should group together and get legal advice.

I absolutely 100% agree with that.

Barrygbr
2nd March 2017, 18:17
Anyone who is contracted with IQ contracts - known as Darwin or Umbrella Requirements needs to get out/leave ASAP - this was advice given to me by an Accountant in London earlier this week as I have just received a letter from HMRC requesting 3 years of self assessment forms and am therefore not a happy bunny...they even sent me the link to this forum and post - if we gathered enough people who worked for IQ based in the IOM and the UK - we could put a case together to bring them to book...I am cut and pasting this post which has obviously been written to assist unlikely souls who thought that they were using a legal and above board company to be duly paid through and this I am afraid is far from the truth...

You need to spend some time reading through the threads - it will be an hour well spent.

In short, HMRC believe that ALL the payments you received from the promoter should be treated as taxable income.

They are preparing litigation against some schemes and that is advanced in a couple of instances. Whether that happens later this year or is delayed by the April 2019 proposed tax charge (see below), we wait and see.

Litigation groups, formed by users of particular schemes, are available. I don't know if this scheme has one. If not, then as has been suggested, somebody needs to grasp the nettle and form one. The first task would be to raise some funds for an initial legal opinion.

Until a case is taken on a scheme that is very similar to the one you used, and a decision reached, perhaps 5 to 7 years, you will not know if HMRC is correct. Costs of litigation groups vary a lot but going all the way in Court is expensive, perhaps £700,000 t0 £1,000,000. Obviously it depends on how many are in (and stay in) the group through the process as to individual cost.

The other option is to reach a settlement. That can be done individually or as part of a group.

Individual settlement at the moment is basically to pay the tax HMRC say is due, plus interest. They are not moving from that position.

Settlement via a group means that some proper research and guidance can be obtained and discussions held with HMRC as to the outcomes available. Membership of such groups tends to be less expensive.

There is no guarantee that a litigation or a settlement group will reach a position of agreeing the liability.

There is a guarantee that HMRC will use their powers to issues APNs where they can, assessments where they can't, make requests for information and tax returns and generally make life as uncomfortable as possible. Whether that is part of a deliberate policy of intimidation as some would have you believe, or part of the agency doing it's job, is for you to judge. Certainly there are instances when through policy or incompetence, HMRC strays over the line in terms of exercising their powers.

In an attempt to draw a line under the EBT sector, a new tax charge in April 2019 is proposed. Details are thin but it means that outstanding loans as at that date will be taxed, regardless of certain protections currently guaranteed for taxpayers. This is being resisted in terms of application (the war against introduction never got started as the law IS arriving).

This charge may render litigation/settlement irrelevant. We don't know yet and will not know until we see the detail promised for this "summer".

So you can choose to stand alone, join a litigation group is there is one still open, join a settlement group or all of the above.

The only guarantee is that HMRC will want to extract cash from you as soon as they can. Eventually they may be forced to give all or some of it back, or you might be asked to pay more.

Find some other people in the same arrangement, speak/email them, make a plan, get advice.

I have spent the last week going to hell and back and have now engaged an accountant to assist me which is costing around 450 pounds - I need help with this, as self assessment forms are not my area of expertise - this is saving peoples lives in the NHS etc...during my journey of going to hell and some of the way back I learnt something very useful about HMRC and this is that they/it do not like the word is "MP" - I wrote to my local MP - a letter indicating that I was troubled as to why HMRC are sending self assessment form to PAYE employees who pay tax and NI etc and who are working through an Umbrella company as a contractor. Might I suggest that you and any one else does the same as if enough letters are sent then we have a voice in parliament. Write the letter with intent and keep it simple and see what happens....

I was with IQ for just short of four years, same scenario.

I will write to my MP as it is worth a try. Anybody else out there please do the same on the off chance that it may be helpful.

webberg
3rd March 2017, 15:54
I was with IQ for just short of four years, same scenario.

I will write to my MP as it is worth a try. Anybody else out there please do the same on the off chance that it may be helpful.

If this were 2010 I'd agree with your suggestion.

Unfortunately HMRC has already poisoned the MPs against you, branding you a tax avoider, and no MP is going to risk his/her reputation or votes in trying to defend you.

This game is not over but the beginning is over and we are about to enter the mid game and as such I'm afraid you've got some catching up to do. Spend a couple of hours reading the forums and then go and get some advice.

BlackPrince
7th March 2017, 09:11
Saw this update on IQ Contractors' website. There is no link to an independent report.

Ww w.iqcontracts.com/news/contractor-tax/hmrc-to-repay-thousands-to-it-contractors

Does anyone know about it?

BigGeorge
14th April 2017, 00:06
Hi all... quick question, in 2012 for a fleeting moment (about 3 months) I was a member of the IQ Contracts scheme, I think set up via Winchester Contracts.

I've received an APN for far more than I actually earned during those few weeks, which I have of course appealed.

I sent them a set of figures from my statements showing what I earned, but they've reponded requesting the actual bank statements.

As I'm a private individual without any company connections and this isn't a business, do I have to send 3 months of statements with all the private transactions involved.

I'm very reluctant to send those statements, for purely personal reasons.


This is the text from the letter:

"You have submitted figures which are from IQ Contracts, could you please furnish me with the bank statements from which these figures have been obtained from. Once I am in receipt of these then I can revise the calculations."

My understanding is that as private individual these aren't statutory records and unless there are exceptional circumstances they don't ask.

Any thoughts.

In case this goes very wrong, can anyone recommend some kind of accountant who's happy to work in this area?

webberg
14th April 2017, 16:13
Saw this update on IQ Contractors' website. There is no link to an independent report.

Ww w.iqcontracts.com/news/contractor-tax/hmrc-to-repay-thousands-to-it-contractors

Does anyone know about it?

That story related to the Montpelier scheme between 2002 and 2008 where APNs were issued and then withdrawn because the scheme was not notifiable.

Long since overtaken by events.

webberg
14th April 2017, 16:16
Hi all... quick question, in 2012 for a fleeting moment (about 3 months) I was a member of the IQ Contracts scheme, I think set up via Winchester Contracts.

I've received an APN for far more than I actually earned during those few weeks, which I have of course appealed.

I sent them a set of figures from my statements showing what I earned, but they've reponded requesting the actual bank statements.

As I'm a private individual without any company connections and this isn't a business, do I have to send 3 months of statements with all the private transactions involved.

I'm very reluctant to send those statements, for purely personal reasons.


This is the text from the letter:

"You have submitted figures which are from IQ Contracts, could you please furnish me with the bank statements from which these figures have been obtained from. Once I am in receipt of these then I can revise the calculations."

My understanding is that as private individual these aren't statutory records and unless there are exceptional circumstances they don't ask.

Any thoughts.

In case this goes very wrong, can anyone recommend some kind of accountant who's happy to work in this area?

Refer HMRC to the Taxpayers Charter which says that you are entitled to be believed by HMRC.

Tell them that asking for bank statements is an unwarranted fishing expedition.

Plenty of tax advisers who operate in this space. 10 minutes on Google looking for contractor tax/APN/Discovery assessment should throw up a list of names.

BigGeorge
17th April 2017, 11:24
Refer HMRC to the Taxpayers Charter which says that you are entitled to be believed by HMRC.

Tell them that asking for bank statements is an unwarranted fishing expedition.

Plenty of tax advisers who operate in this space. 10 minutes on Google looking for contractor tax/APN/Discovery assessment should throw up a list of names.

Thanks, i was thinking of offering them a redacted set of bank statements - ie with every single line item blacked out except the ones with IQ contracts listed.

The reality is what I've said is 100% correct.... i only worked under these systems for a few months. They've actually "estimated" my assessment as far more than i ever earned, which tells me they don't have a clue. They are indeed fishing.

So my name has come up on a list of IQ contractors passed to the Revenue and they've gone after it, why can't they check the IQ paperwork and find the actual amount? Are they too lazy, or don't they have access to the dates\payments info etc??

Fred Bloggs
17th April 2017, 12:27
I guess if IQ are/were off shore then it is beyond HMRC ability to get the information even if it is available, which, I doubt. The people behind IQ are likely in Panama or Belize or someplace nice and sunny where no questions are asked.

Tony S
9th June 2017, 15:10
I guess if IQ are/were off shore then it is beyond HMRC ability to get the information even if it is available, which, I doubt. The people behind IQ are likely in Panama or Belize or someplace nice and sunny where no questions are asked.

Hi,
In Feb17, I received late tax returns letters from HMRC for the period 2013-142014-15 , 2015-16 I was with IQ Contracts during that period. And I have penalty letters as well around Mar17 time. But after that I didnt receive any reminders on this. Do you think I should check with HMRC on these letters or can I ignore these until i get further letter/notice from HMMC.
Please advice. I'm new to this forum.

Thanks.

Move D
2nd July 2017, 13:58
I was with IQ Contracts for one year and and have now received the SA compliance document for the same year (straddling two FY years). Although the document does not refer to IQ by name which, from reading other posts, is unusual.

Definitely looking into joining Big Group. Did you allow Big Group to correspond with HMRC or did you leave that for your accountant? From the previous posters, what was the outcome/is the process still ongoing? PM me if you can. I could do with some info to prepare me for what's incoming from HMRC.Thanks.

BrilloPad
2nd July 2017, 17:36
I was with IQ Contracts for one year and and have now received the SA compliance document for the same year (straddling two FY years). Although the document does not refer to IQ by name which, from reading other posts, is unusual.

Definitely looking into joining Big Group. Did you allow Big Group to correspond with HMRC or did you leave that for your accountant? From the previous posters, what was the outcome/is the process still ongoing? PM me if you can. I could do with some info to prepare me for what's incoming from HMRC.Thanks.

The process is very much ongoing. I reckon give it 10 years. Until the end. Of the beginning.

Hanss
10th April 2018, 11:58
Guys i have just got a letter from HMRC for 13/14 requesting payment in the next couple of weeks.

Did any of you join the big group and sent any correspondence to HMRC on work done via Umbrella contracts / IQ consulting.

I have another3 years of working under them and will shortly be getting letters for those i believe.

Please let me know.

webberg
10th April 2018, 14:32
You probably have a discovery assessment which means that you need to appeal it and ask for the tax to be postponed. Has to be done within 30 days.

Check the date of the assessment and when you received it.

The Court permits a delivery time of 4 days for second class post which is what HMRC usually use.

Therefore as the 13/14 year went out of date on 5th April 2018, an assessment made via second class post should have been posted on 1st April (a Sunday).

In reality most were done seemingly on 3rd April and if sent second class will fail the delivery conditions and are invalid.

If HMRC claim that they sent them first class, then they should have kept proof and you can ask for it.

First class has a 2 day window, so anything sent on 4th April will also be invalid.

Enjoy.

Locumconractor
24th February 2019, 22:32
I was with IQ from April 2012 to September 2015.

I have now been asked by HMRC for SA's for years 2012/13, 2013/14 & 2014/15.

According to CHS, the schemes I was in was DOTAS for only the year 2013/14. My understanding is that this will be the only year I will receive an APN for.

Can anyone advise if this is correct?

Thanks in advance.

No this isn't correct:
I was with IQ from 2013 to May 2016 and thought the same as you but have now also received notice regarding 2014 - 2015.

sunilthakur007
6th April 2019, 21:13
Also, it's unlikely people will share their experience on this public forum read by HMRC :wave:
The Big Group forum is where it's at.

I would like to join BIG GRP , How to join ? procedure?

RobScott
7th April 2019, 18:11
I would like to join BIG GRP , How to join ? procedure?


webberg is the Big Group! message them