Yep another one - Target Umbrella / Redstone Services - HMRC letter

[lowpaidworker]

I’ve posted on some of the other threads regarding this scheme/schemes

I’ve got a response from the scheme saying as these are loans direct from your employer they are not subject to the 1019 LC

However a few learned people on here doubt that statement

[mayt]

target umbrella + integra, minimal wage + loan for tax avoidance

Hi
I've been contacted from my current employer to join target umbrella, but to do so i have to sign a contract with target umbrella for a minimal wage payment and a contract with integra to receive the rest of my wage as a loan (tax avoidance).
Now everything sound slightly illegal, I asked explanation to my referrer and he said that it's a way to keep the 84% of my wage.
Should I stay away from it? or it's worth taking the risk?

[cojak]

Hi
I've been contacted from my current employer to join target umbrella, but to do so i have to sign a contract with target umbrella for a minimal wage payment and a contract with integra to receive the rest of my wage as a loan (tax avoidance).
Now everything sound slightly illegal, I asked explanation to my referrer and he said that it's a way to keep the 84% of my wage.
Should I stay away from it? or it's worth taking the risk?

No it is not worth taking the risk.

(FFS...)

And I am now investigating you to see if you are trolling this forum.

[HMRC made Atlas Shrug]

Vote them all out or bend over

. . . . . How on earth is this allowed to happen in this country ? . . . .

Because we keep (not me anymore) voting for the same establishment parties in every election. Until we get a "Trump" in the UK and get rid of the crooked sociopaths in the civil service and politics, we have to bend over.

[AZUK]

Scheme Ref Number?

Hi all,

I have searched and read through most of the posts about the HMRC enquiries on loan amounts from Umbrella companies but I’m not sure whether this applies to all umbrella companies that the HMRC are investigating.

I was with Target Umbrella for four months and received loan payments from Integra Management. HMRC counter avoidance have asked me to provide the details which I have done.

Target Umbrella tell me they are sending me a response letter to send to HMRC which will stop them hassling me.

They say they are not DOTAS registered and are fully compliant.

Is this just pie in the sky ? Are HMRC hoping I just settle the tax bill to recoup tax from schemes which are legal but they are opposed to ?

Basically what I am asking is the fact that I have got a letter investigating the loan payments means I just have to settle and that’s the end of the matter. A repsonse from Target / Redstone is not going to get rid of HMRC ?

I know there is a lot of info on here already but I am still not sure whether a letter from HMRC about loan payments automatically means I just have to cave in and I can’t challenge them.

Regards,
Gary

Hi Gary,

I have also been with the same due you mentioned.
In my online self assessment (very very late!), I see an entry for Scheme Reference Number, but I dont have this documented anywhere as I only had 2 employment contracts, one with Target and the other with Integra.

Can you please help?

This is very stressful and it is taking its toll on many contractors and their families..

Much Appreciated,
Aziz

[Merlin100]

Target Umbrella / Integra - is loan charge applicable?

I’ve posted on some of the other threads regarding this scheme/schemes

I’ve got a response from the scheme saying as these are loans direct from your employer they are not subject to the 1019 LC

However a few learned people on here doubt that statement

Hello,
I also received the same response.. so too did another former colleague. However we received another letter today from HMRC about changes to the way HMRC will retrieve tax on loans... so Im not sure if we are implicated or not. Would be great to get some clarity on this.

[Culps67]

Hello,
I also received the same response.. so too did another former colleague. However we received another letter today from HMRC about changes to the way HMRC will retrieve tax on loans... so Im not sure if we are implicated or not. Would be great to get some clarity on this.

I paid the "extra tax" due but what about the tenth anniversary where you have to pay the loan back ?

[lowpaidworker]

Hello,
I also received the same response.. so too did another former colleague. However we received another letter today from HMRC about changes to the way HMRC will retrieve tax on loans... so Im not sure if we are implicated or not. Would be great to get some clarity on this.

Firstly I'm not a Tax expert.

All i can tell you is if Redstone/Target the loans were direct employer loans which Redstone say are not caught by Loan Charge. HMRC disagree with this. They say the Loan Charge captures these arrangements.

I would do acouple of things.

1. Join LCAG if you havent already. They are doing some very good work on getting this whole mess raised in Parliament. However they are not tax advisors just a group (cica 5000 members) who are all in a similar situation.

2. Seek professional advice. There are IMHO some very good ones on here who will give up their time to explain in a bit more detail. It should be pretty obvious from some of the posts who those people are. Not sure I am allowed to say names.

good luck

[DealorNoDeal]

All i can tell you is if Redstone/Target the loans were direct employer loans which Redstone say are not caught by Loan Charge. HMRC disagree with this. They say the Loan Charge captures these arrangements.

Have HMRC given any actual reason why the loans are caught by the LC?

[lowpaidworker]

Have HMRC given any actual reason why the loans are caught by the LC?

None whatsoever. Other than they have written to me saying mine are caught, despite them not referencing any years. To add to the confusion I have seen a letter from HMRC to a scheme member confirming the Target/Redstone loans are not caught by the LC19.

Anyway per my comment above they need proper tax adivce and not just just rely on the ramblings and hearsay on these forums.