Newbie - Notice of Assessment

[tonton]

Hi All,

I have just registered with ContractorUK and I am managing to find a lot of very useful information. Thank you very much.

I have had a notice of assessment for tax year ending 5 April 2016 for some contracting work I carried out under an umbrella company which may be part of the Loan Charge Scheme (I was informed it was all legit and tax efficient at the time)

I have been in contact with a tax advisor, but unfortunately they are not working today due to the holiday and I have one more query.

I will be appealing the decision as advised, but in an email response it said that if I request postponement of the payment, this holds a risk of raising interest in my case so I have the option of paying the charge and lodging the appeal which may reduce that risk. The usual response is appeal and postpone payment.

What are your thoughts on this? I will obviously be in contact with the advisor next week, but I am beginning to lose sleep worrying about what to do and need guidance ASAP.

Thanks in advance.

[Willo76]

" paying the charge and lodging the appeal which may reduce that risk. The usual response is appeal and postpone payment."

Do you think you'll get it back ?

[tonton]

To be honest, I'm not sure what to expect. I think there is probably something to pay but until my tax advisor gets a full grip of all the details I am at a loss.

I was just hoping somebody could assist with whether I should postpone and appeal, or pay and appeal. What will the difference be?

[BolshieBastard]

Hi All,

I have just registered with ContractorUK and I am managing to find a lot of very useful information. Thank you very much.

I have had a notice of assessment for tax year ending 5 April 2016 for some contracting work I carried out under an umbrella company which may be part of the Loan Charge Scheme (I was informed it was all legit and tax efficient at the time)

I have been in contact with a tax advisor, but unfortunately they are not working today due to the holiday and I have one more query.

I will be appealing the decision as advised, but in an email response it said that if I request postponement of the payment, this holds a risk of raising interest in my case so I have the option of paying the charge and lodging the appeal which may reduce that risk. The usual response is appeal and postpone payment.

What are your thoughts on this? I will obviously be in contact with the advisor next week, but I am beginning to lose sleep worrying about what to do and need guidance ASAP.

Thanks in advance.

A lot depends on whether HMRC are only investigating 1 tax year and how much money was passed through the umbrella, basically, what's the amount of your exposure? It also depends on whether you want to join a long drawn out fight or not and whether you are confident you will win in the end.

All I would say is think very hard whether you want this to drag on for years, the worry it will undoubtedly bring and can you afford to settle with HMRC now. Bear in mind if you cannot afford to settle now, you need to be certain you'll win when it eventually is settled as the 'bill' will only get bigger.

[DealorNoDeal]

What are your thoughts on this? I will obviously be in contact with the advisor next week, but I am beginning to lose sleep worrying about what to do and need guidance ASAP.

If you can afford to settle, give really serious consideration to doing this. Chalk it up as a naive/dumb thing to get involved in. Move on with life, don't look back.

The alternative is being in a never ending dispute with HMRC.

[LondonManc]

Hi All,

I have just registered with ContractorUK and I am managing to find a lot of very useful information. Thank you very much.

I have had a notice of assessment for tax year ending 5 April 2016 for some contracting work I carried out under an umbrella company which may be part of the Loan Charge Scheme (I was informed it was all legit and tax efficient at the time)

I have been in contact with a tax advisor, but unfortunately they are not working today due to the holiday and I have one more query.

I will be appealing the decision as advised, but in an email response it said that if I request postponement of the payment, this holds a risk of raising interest in my case so I have the option of paying the charge and lodging the appeal which may reduce that risk. The usual response is appeal and postpone payment.

What are your thoughts on this? I will obviously be in contact with the advisor next week, but I am beginning to lose sleep worrying about what to do and need guidance ASAP.

Thanks in advance.

Telling us the names and details of the scheme would be a good start. Not all umbrellas are loan schemes and not all loan schemes are umbrellas. What did you pay slips look like?

[BrilloPad]

Telling us the names and details of the scheme would be a good start. Not all umbrellas are loan schemes and not all loan schemes are umbrellas. What did you pay slips look like?

+1

Also you can search CUK for the scheme - look in the top right of this page.

[DealorNoDeal]

A notice of assessment (aka discovery assessment) is a big clue that it was a tax avoidance scheme. HMRC don't issue them without good cause.

[LondonManc]

A notice of assessment (aka discovery assessment) is a big clue that it was a tax avoidance scheme. HMRC don't issue them without good cause.

Doesn't sound like an umbrella then, unless it was a dodgier umbrella that ran two books?

[BrilloPad]

Doesn't sound like an umbrella then, unless it was a dodgier umbrella that ran two books?

Many schemes claimed to be umbrellas....