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AccountingWeb : HMRC and ASA join forces to fight tax avoidance

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    #11
    Originally posted by DealorNoDeal View Post
    Yep, probably more than anything else, that will kill off the schemes.

    Agencies and end users simply won't touch anyone who isn't working through a fully PAYE compliant entity.

    The old trick of inserting a dummy UK intermediary between the Isle of Man and the agencies won't work anymore.
    Checks what most agencies think is enough due diligence - Nope, most agencies think a listing on FCSA / Professional Passport is enough.

    Thankfully that is changing as I give them a reality check.
    merely at clientco for the entertainment

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      #12
      I've been out of contracting for a few years, so I'm not up to speed on the new (public sector) IR35 rules. Is it the end user who is ultimately liable for any unpaid PAYE? Or could the agency be on the hook?

      If a contractor somehow managed to still use a scheme, I wonder who HMRC would go after?

      Contractor <- scheme <- agency <- end user
      Scoots still says that Apr 2020 didn't mark the start of a new stock bull market.

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        #13
        Originally posted by DealorNoDeal View Post
        I've been out of contracting for a few years, so I'm not up to speed on the new (public sector) IR35 rules. Is it the end user who is ultimately liable for any unpaid PAYE? Or could the agency be on the hook?

        If a contractor somehow managed to still use a scheme, I wonder who HMRC would go after?

        Contractor <- scheme <- agency <- end user
        If inside IR35 it would be up to the fee payer (agency) to show they performed suitable due diligence - FCSA claim that using their members is enough - whether a court would accept that is an interesting test case (and I suspect it won't be if more diligent checks were available elsewhere that went beyond FCSA's annual "random" anonymous audit check.

        But the reality is that the contractor is responsible for the tax they are supposed to pay so were the contractor to knowingly enter a scheme using an "umbrella" that wasn't part of the agencies recommendations I believe the blame and costs would be passable back to the contractor.

        Which means you have in interesting cross over point where say the agency insists on a FCSA / Professional passport umbrella and the umbrella is dubious..

        * Worth pointing out my interest here - as I'm working on a scheme that provides umbrellas with continual compliance checks so that agencies and end clients are 100% sure that everything is fully compliant and HMRC won't come knocking.
        Last edited by eek; 16 December 2020, 16:46.
        merely at clientco for the entertainment

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