If it…
Looks to good to be true.
Thousands of people lured into brolly schemes that made other people very wealthy. Like many others at the time, I had the option of using these companies but common sense and genuine figures from prospective accountants kicked the whole thing into touch for me. It wasn’t rocket science to see at that time this was nothing more than toxic. This centered around a loan payment that avoided paying taxes on income altogether. Surely anyone who did some research into how this was being managed would have said to themselves this is wrong?
“It is unfair to ordinary taxpayers to let anybody benefit from contrived tax avoidance of this sort, and that is why the government has taken action to ensure that everybody pays the taxes they owe."
That seems fair enough to me.
yourhavingalarf:
“It is unfair to ordinary taxpayers to let anybody benefit from contrived tax avoidance of this sort, and that is why the government has taken action to ensure that everybody pays the taxes they owe."That seems fair enough to me.
^^^That.
If you want to use brolly schemes or dodgy Ltd schemes then AFAIC, you lose the right to moan about services that are funded by taxpayers.
And no I don’t take a dividend.
Recruiters/Agencies should be liable for forcing umbrella schemes.If you put PAYE only hardly any will employ you because they use umbrella scams .
"There is no tax paid on the £3,000, and the idea is that there is a mutual understanding that the loan will never be repaid. "
“I didn’t think I was doing anything wrong.”
Yeah right. I don’t think I could care any less about any of those people in that article. Even in the article it says such people are very unlikely to get any sympathy from those on PAYE. Bang on.
GasGas:
Thousands of workers hit with massive tax avoidance bills | Income tax | The Guardian
What a muppet post. This is nothing to do with umbrella companies and everything to do with L O A N S.
Jeez a great example of a poster who doesn’t understand what they have posted.
THIS IS ABOUT LOANS AND PAYING YOURSELF IN LOANS not Umbrella companies per se! 
The Umbrella companies use loans (which did not have to be repaid) as a way of avoiding tax. That is the essence of an umbrella scheme.
Sand Fisher:
GasGas:
Thousands of workers hit with massive tax avoidance bills | Income tax | The GuardianWhat a muppet post. This is nothing to do with umbrella companies and everything to do with L O A N S.
Jeez a great example of a poster who doesn’t understand what they have posted.
THIS IS ABOUT LOANS AND PAYING YOURSELF IN LOANS not Umbrella companies per se!
No sympathy with those affected as they must have known they weren’t right with how little tax they were paying.
However it shows the umbrella companies saying do this it’s legal and then down the line HMRC saying it’s not. Can’t help but see a parallel with LTD company drivers personally…
Santa:
The Umbrella companies use loans (which did not have to be repaid) as a way of avoiding tax. That is the essence of an umbrella scheme.
This ^^^
Thing…
You have to remember with HMRC.
It’s their football, their stadium and their rules.
publications.parliament.uk/pa/l … /24207.htm
The flip side to the Loan charge… In keeping with HMRC’s underhand tactics, knowing of these “schemes” for years and years, doing absolutely nothing with the perpetrator’s of the “schemes” and going for the low hanging fruit ie the worker for tax/ni which could have all been prevented had HMRC dealt with them in a timely manner. Easy to make people owe £££££s when handled in such a disgraceful way. If you owe the taxman money in a normal situation they hound you immediately, this report shows they allow rogues to run disguised remuneration schemes for years making the rogues very wealthy and landing the worker in debt. Many of the workers were coerced into these “schemes” by employers including umbrella and agencies and some of the “schemes” seem to have been ok’d by HMRC…disgusting. This Loan Charge is going to bite HMRC in the bum even the Minister who overseas HMRC didn’t even attend the select committee to give evidence even though he was asked on numerous occasions, says it all really.
When a new Act goes through Parliament, isn’t it the job of the Opposition (ie The Labour Party) to raise these points?
Santa:
When a new Act goes through Parliament, isn’t it the job of the Opposition (ie The Labour Party) to raise these points?
These are recommendations by the Economic Affairs Committee for the upcoming Finance Bill 2019. It’s findings are regarding HMRC’s treatment of tax payers and how the balance of power has gone too far in favour of HMRC to the point of justice being eroded for the tax payer.
Bearing in mind that that website has a product to sell I would take anything it says with a pinch of salt.
The NHS has a complicated structure for VAT; both as a purchaser and as a seller. When I worked for the NHS, the hospital where I was based got into serious trouble for not paying VAT on steam… They had an arrangement with a waste disposal company who built a facility on the site (it replaced an older one that wasn’t up to standard). The company used the ‘waste’ heat to generate steam which was used for heating the hospital. HMRC said that the steam had value and was VATable. AFIK ‘medical’ services were not VATable.
Santa:
Bearing in mind that that website has a product to sell I would take anything it says with a pinch of salt.The NHS has a complicated structure for VAT; both as a purchaser and as a seller. When I worked for the NHS, the hospital where I was based got into serious trouble for not paying VAT on steam… They had an arrangement with a waste disposal company who built a facility on the site (it replaced an older one that wasn’t up to standard). The company used the ‘waste’ heat to generate steam which was used for heating the hospital. HMRC said that the steam had value and was VATable. AFIK ‘medical’ services were not VATable.
So going on that theory any site that has a product to sell is to be taken with a pinch of salt?
The site concerned conveys info which is in the public domain, it just places the information on the site for people to read.
It was yet another way for umbrella companies to get round the system…its about time HMRC and the DWP banned these rip off companies, even the Agencies seem to get away with it yet they are the ones pushing you to get paid by umbrella…basically washing their hands of it all.
the way i see it is an umbrella is acting as an accountant, then giving you the bill at the end of the week via deductions…i wrote about this a while ago, still not resolved, but arguing for my wife as they were also deducting things like Employers N.I. which as far as i can see is F/A to do with her, as she is retired and exempt from paying N.I. only tax and other fees they deem necessary.