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HMRC - 9/10 contractors are cheating and we know because of SA returns

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    #11
    Well I watched some of it. And it appears that the Committee very soon picked up on the fact that HMRC have based IR35 on assumptions. In fact one of them asked HMRC to provide written proof on one of the points, because if it was that clear the evidence should be plain...

    I noticed that Cherys (sp) lady's "Urrrrghhh"'s got longer the more she struggled with giving a suitable answer.

    Quite impressed when it was pointed out most people forced into brolly companies were going to lose about 30% net income. And can't do anything about it.

    Methinks it hasn't finished yet. Thanks for the link...

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      #12
      Thank you for the video. Its fascinating. The Lords asking very relevant questions, and seeing to the heart of the matter, and the HMRC representatives seeming shifty lying cheaters. Literally just how would you imagine them to be.

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        #13
        Originally posted by HMRCWOT View Post
        The lady from HMRC who is in charge of IR35 implementation said that the evidence that 9/10 PSC's were paying the incorrect tax was from analysis they did on self assesment, she basically admitted that they plucked the number from thin air, didn't have any actual evidence and promised to forward a note showing how they came to that decision - this is critical because if they have their numbers wrong it won't net the treasure what they think it will.
        We know this is how HMRC works. They just see a trend of people in a similar bracket, doing the same things with a similar outcome. Of course it won't result in the tax income that they expect, because they are blinkered to the other aspects, all they can see is that the majority don't pay any NI, including ErNI.

        It's very easy to pick up on the SA. How do you pay yourself? Minimum salary to avoid NI and then dividends. That is where the 90% comes from, it doesn't have to be scientific, or even perfect.

        Most people don't need to do a SA, because they are on PAYE and have no other income or investments. That is their starter for 10.

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          #14
          PSC box, that's how they know it.

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            #15
            Originally posted by NeedTheSunshine View Post
            That's how they operate. Dubious facts and statements. They don't seem to be held accountable to anyone at the moment.

            They can open an enquiry and leave it open for years without taking it any further. The onus (not to mention the time, money and stress) will be on you to prove that they are wrong at some point when they finally get around to addressing your case.
            ^^ this.

            Do you honestly believe that HMRC would go onto live TV and reveal how they work this stuff out? They had a meeting before going in and agreed with each other to act dumb and if the Lords ask for proof, slip it to them later.

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              #16
              Originally posted by Jolie View Post
              ^^ this.

              Do you honestly believe that HMRC would go onto live TV and reveal how they work this stuff out? They had a meeting before going in and agreed with each other to act dumb and if the Lords ask for proof, slip it to them later.
              Unfortunately for HMRC the Lords aren't MPs. They are appointed because they are an expert in their field.

              HMRC can slip their evidence later to not have a bigger hole ripped into them on TV but that evidence will still be torn apart.
              "You’re just a bad memory who doesn’t know when to go away" JR

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                #17
                Originally posted by Lost It View Post
                So HMRC don't have to prove anything? They can simply state it and we have to accept it as fact because they are HMRC?
                That is exactly how it works. HMRC's assessment of your tax status is taken to be correct unless you can sucessfully appeal at a tribunal. In other words, you have to demonstrate that HMRC are incorrect - the burden of proof is reversed, and the taxpayer has to be in a position to provide factual evidence. This is why it is especially important to generate and keep all documentation related to IR35 status, especially comments from the client.

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