HMRC and Revenue Comissioners relationship

B

BHead2019

Registered User
Messages
1
All,

Has anyone else been subjected to the grossly unfair ‘Loan Charge’ legislation that affects 50,000 contractors who were using Loan arrangements from Trusts to get paid for contractor work while working in the UK.
I am currently domiciled in Ireland​

They have passed the "Debt" I owe to the Irish Minister for Finance and hence the Revenue commissioners.

How far will Irish revenue go for UK tax authorities in terms of collection of fees? do I have any protection as a Irish citizen as this is a different jurisdiction? no tax legislation was circumnavigated given the rules at the time, this new legislation was rushed through to catch tax dodgers but what I was doing was within the tax laws at the time.

Any advise would be appreciated





 
Yes indeed, it was terribly unfair.

Contractors set up limited companies.
These companies paid no tax.
They lent the money to the contractor and so they paid no tax or social insurance as it was a loan.
The loans were never repaid.

The UK Revenue successfully challenged this arrangement and now want these people to pay tax and social insurance on their income.

After getting big incomes tax-free for years, they are now being asked to pay tax just like other UK citizens! It's disgraceful.

Brendan
 
Surely there is something we can do about this. A protest march? This is just picking on the marginal of society once again who were unfortunate enough to use complex highly questionable tax arrangements to save tax on daily rate contracts worth only a few hundred pounds per day.... These people didn't know. It wasn't their fault. They were just doing what their highly paid accountants/tax advisers were telling them....Again one rule for the rich and another for the poor ordinary folk......

Best of luck fighting this. I really do hope you get justice. Really does bring tears to my eyes....Have you thought about Joe Duffy?
 
In your boots I would be negotiating with the U.K. tax authorities, outline your current position, where you are tax resident now and will be ink the future and agree a repayment plan, it is the mechanism you used whilst in the UK that now fails to meet taxation, it was borderline at best when it was in place.
 
I contracted in the UK for a year about 5 years ago and these schemes were been sold all over the place. Most contractors I had dealings with ran a mile from then. They were nothing but tax avoidance schemes. No different to people here hiding money in off shore accounts in the 1980's and Revenue coming after them years later......
 
Sunny said:
Most contractors I had dealings with ran a mile from then.
Click to expand...

That is very interesting. I have heard this issue discussed a lot on BBC Radio 4 and I have never heard this point being made. It's always "The Revenue is hounding the honest citizen".

As a contractor paying my tax, I would be annoyed at others not paying theirs.
 
Brendan Burgess said:
That is very interesting. I have heard this issue discussed a lot on BBC Radio 4 and I have never heard this point being made. It's always "The Revenue is hounding the honest citizen".

As a contractor paying my tax, I would be annoyed at others not paying theirs.
Click to expand...

Yeah, I have heard people talk about the numbers involved to be something like 50,000 contractors. I would be very shocked if it was the number but I suppose it could be over a number of years. I was warned by the agency that I was using about going down this route with this particular structure. I would imagine all the reputable contracting agencies were doing the same. If you earn money, you pay tax. Anyone who thinks they can avoid tax on up to 90% of their income is involved in tax avoidance. The vast majority of contractors I knew used the umbrella structure which has it's own tax issues but at least income tax and social security were all paid.
 
BHead2019 said:
All,

Has anyone else been subjected to the grossly unfair ‘Loan Charge’ legislation that affects 50,000 contractors who were using Loan arrangements from Trusts to get paid for contractor work while working in the UK.
I am currently domiciled in Ireland

They have passed the "Debt" I owe to the Irish Minister for Finance and hence the Revenue commissioners.

How far will Irish revenue go for UK tax authorities in terms of collection of fees? do I have any protection as a Irish citizen as this is a different jurisdiction? no tax legislation was circumnavigated given the rules at the time, this new legislation was rushed through to catch tax dodgers but what I was doing was within the tax laws at the time.

Any advise would be appreciated
Click to expand...

If the debt is passed to the Irish Revenue, they will come after you. Best to get a tax advisor and approach the Revenue with a view to coming to some sort of settlement before they throw the book at you.
 
You must log in or register to reply here.
Back
Top