In a widely anticipated follow-up session on the Loan Charge by the Lords Economic Affairs Committee, HMRC failed to convince the Committees members on the legal justification for it’s highly controversial retrospective tax that has resulted in thousands of freelancers being pushed to the brink of bankruptcy. The members also poured scorn on HMRC’s poor record of cracking down on rogue umbrella companies which are, according to the BBC, still promoting schemes.The Committee directed … [Read more...]
What the disguised remuneration operators wont tell you
Many contractors we have spoken to over the years have not realised just how much information HMRC holds that would make it easy for them to identify ‘dodgy’ schemes operating in the market. The issue that comes up again and again is why HMRC is not more proactive in its approach and working to close such schemes down faster. Whilst we too take steps to continuously challenge HMRC, there has been little headway. Despite this, contractors need to be alert to the fact that nowadays it is more … [Read more...]
If it sounds too good to be true, it usually is
Public sector nurses and social workers who have been encouraged by recruitment agencies to take their wages through suspected tax avoidance schemes are now in debt of tens of thousands of pounds following HMRC investigations.Employment agencies have been taking business from rivals by allowing workers to be paid through umbrella companies offering between an 80-90% take home pay.These tax schemes, which are usually registered in places like the Isle of Man or Malta, attract workers due … [Read more...]