Recent use of offshore loan schemes - anyone approached HMRC? Recent use of offshore loan schemes - anyone approached HMRC?
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  1. #1

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    Default Recent use of offshore loan schemes - anyone approached HMRC?

    Hands up - before I get hit with a shower of abuse I started using a scheme in 2013. Pretty dumb - yes. Ignorance - yes. First contractor position - yes. Not enough research - yes. Introduced by a (former) friend (who was only too keen to trouser his introduction fee) - yes. Please feel free to have a chuckle - when I'm not kicking myself I do as well - my user name was chosen based on how I feel !!!

    Ok now to the questions. All of the posts appear to be about previous years use of schemes and HMRC seem to be focused on 2008 -2011. Why the particular focus on these years? Is it that's how behind they are? Is the cut off at 2011 to coincide with the Disguised Remuneration rules?

    Has anyone approached HMRC off their own back to declare use of these schemes after these dates?

    In HMRC's own releases they are using the date of Jan 2015 for people to be able to approach and settle without penalties. Anyone know if this would apply if you contacted them re. 2013/2014? I am assuming that anyone using a scheme after 2011 is going to get hit hard and am wondering as well as trying to get this millstone from around my neck whether it makes much more financial sense to try and sort it out now.

    Additionally has anyone ever had a "loan" recalled from any of the companies providing this sort of scheme. My paranoia is working overtime now and I wonder if out of spite any companies would do this if you settled with HMRC. And then where do you stand.....

  2. #2

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    The recent letter many people have received from HMRC refers to arrangements used up to 5 April 2011, which does coincide with the introduction of the disguised remuneration legislation.

    HMRC may regard any schemes used after this date as flouting the law, and one option open to them would be to deal with them under the GAAR.

    I think you are right to be concerned that they may take a harder line.

  3. #3

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    Quote Originally Posted by DonkeyRhubarb View Post
    The recent letter many people have received from HMRC refers to arrangements used up to 5 April 2011, which does coincide with the introduction of the disguised remuneration legislation.

    HMRC may regard any schemes used after this date as flouting the law, and one option open to them would be to deal with them under the GAAR.

    I think you are right to be concerned that they may take a harder line.
    GAAR only came into law 2013 iirc so what about years 2011-2012?

    regards

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    Quote Originally Posted by turbowoowoo View Post
    GAAR only came into law 2013 iirc so what about years 2011-2012?

    regards
    Good point.

    I guess they'll have to find some other way of attacking 2011/12 and 2012/13.

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    Quote Originally Posted by DonkeyRhubarb View Post
    Good point.

    I guess they'll have to find some other way of attacking 2011/12 and 2012/13.
    Perhaps they'll use the December 2010 provision that allows them to examine all schemes in use from that date forward?
    Blog? What blog...?

  6. #6

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    For 2013/2014 tax year is it all a moot point after all as there's still plenty of time to declare earnings anyway and pay up?

    BTW I am no longer a user of any of these schemes.

  7. #7

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    Consider yourself lucky you can sort everything out.

    I suggest you go and see an accountant, and get this taxed and accepted.

    Don't sit tight because HMRC won't leave you alone for years and years, hounding you through the courts and making your life a complete misery, just pay the tax that, lets face it, would have been paid anyway.


    ...and remember, you're one of the lucky ones. Some contractors spent years on "water tight schemes" and are now paying a very heavy price indeed.
    Last edited by BlasterBates; 19th August 2014 at 15:55.
    I'm alright Jack

  8. #8

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    Quote Originally Posted by BlasterBates View Post
    Consider yourself lucky you can sort everything out.

    I suggest you go and see an accountant, and get this taxed and accepted.

    Don't sit tight because HMRC won't leave you alone for years and years, hounding you through the courts and making your life a complete misery, just pay the tax that, lets face it, would have been paid anyway.

    ...and don't touch anything like this ever again.

    ...and remember, you're one of the lucky ones. Some contractors spent years on "water tight schemes" and are now paying a very heavy price indeed.
    The scheme will have to go via the GAAR - and found to be wanting - at which point FNs and APNs will be issued.
    If the scheme is non DOTAS, due to grandfathering rules, then that will be changing with upcoming legislation. Again FNs and APNs will follow.

    In neither case will you be hounded through the courts, but you will be required to pay tax+interest+penalties.

    HMRC have set out to kill boutique schemes by ensuring that only the certifiable would join one now.

    Some of the existing schemes may be effective - genuinely they may even work, who knows. That's irrelevant - HMRC and HMG are no longer afraid to introduce legislation to retrospectively target avoidance and whatever the legal state of play is right now that may change, retrospectively, in the future.

    Get out. it's really not worth the hassle.

  9. #9

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    Quote Originally Posted by Mug27 View Post
    For 2013/2014 tax year is it all a moot point after all as there's still plenty of time to declare earnings anyway and pay up?
    Yes.

  10. #10

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    Quote Originally Posted by BlasterBates View Post
    Consider yourself lucky you can sort everything out.

    I suggest you go and see an accountant, and get this taxed and accepted


    ...and remember, you're one of the lucky ones. Some contractors spent years on "water tight schemes" and are now paying a very heavy price indeed.
    Blaster, I do feel lucky now that I've come to my senses and I have a bit of time to sort things out. First step is getting an accountant and progressing from there. Let's see how that goes. The lovely cut that the scheme providers have taken will have to be written off to my "that's what you get for being a t**t fund" or my savings as I believe that's what less certifiable people call it!

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