HMRC letter querying loan amount with Winchester contracts

[BSri]

Hello all,

I have received letter from HMRC (second one) querying my tenure with an umbrella company called Winchester contracts. I used to work through them in 2015-16. Then I moved to limited company.
It looks like HMRC is trying to tax me retrospectively on the wage paid by Winchester as "loan amount".
I am very stressed as most of the wage was paid as "loan amount". I went with Umbrella company as I was moving from permanent to contract role and I found Winchester on google. I had no intention to save tax but to get good deal on take home. Winchester contracts said they work under HMRC regulations. I feel cheated. HMRC should query umbrella company not me. I don't know what to do.
Is any help available?

Thanks

[cojak]

Read this thread, someone who has answered may be able to help.

https://forums.contractoruk.com/hmrc...r-contact.html

[Fred Bloggs]

Hello all,

I have received letter from HMRC (second one) querying my tenure with an umbrella company called Winchester contracts. I used to work through them in 2015-16. Then I moved to limited company.
It looks like HMRC is trying to tax me retrospectively on the wage paid by Winchester as "loan amount".
I am very stressed as most of the wage was paid as "loan amount". I went with Umbrella company as I was moving from permanent to contract role and I found Winchester on google. I had no intention to save tax but to get good deal on take home. Winchester contracts said they work under HMRC regulations. I feel cheated. HMRC should query umbrella company not me. I don't know what to do.
Is any help available?

Thanks

Unfortunately, you didn't engage a true umbrella company. You participated in a tax avoidance scheme. Knowingly or not, that is what you did. There are hundreds of posts here from people in the same situation that can help you see a way through it.

[cojak]

And regarding ‘a good deal on take home [pay]’, no umbrella does this, umbrellas work INSIDE IR35 and will take out tax and NI - if you use any legitimate umbrella you will take home around 65% of your day rate.

If an umbrella promises more than this they are a tax avoidance scheme.

The only way to get 'a good deal' is to save tax.

[QCApproved]

Take comfort from the fact that as a relatively recent user HMRC will inform you of your "liability" within a relatively quick period by their standards, and you have not been caught out by the geological timeframes they have been adhering to mostly.

[me206et]

Take comfort from the fact that as a relatively recent user HMRC will inform you of your "liability" within a relatively quick period by their standards, and you have not been caught out by the geological timeframes they have been adhering to mostly.

Yes. 15/16 years.