Tax "avoider" commits suicide.

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If you've never been a contractor and are referred by a trusted colleague to an agent who can set up an umbrealla company/"do your tax", it's understandable some people would be blissfully ignorant.

The agents selling hard and promising "We will sort everything, don't worry" in the minefield of Ltd company rules/regulations is where the blame should lie.

HMRC don't make it easy for people contracting to do things properly either. Especially given how straightforward PAYE is for the employee.
 
Go by the rule "if it's too good to be true, it probably isn't" facing tax and you are fine.

I cannot for a single moment believe this guy thought it was legit to be only paying 1/2% tax, he clearly saw it, saw the monetary gain and ploughed on in. Him and others like him are tax dodgers, clear and simple and they should be made to pay up now they've been caught. Either that or they or terminally stupid/ignorant and that isn't a defence either.
 
Having been a contractor (I went permanent as IR35 kicked in) I have to agree with stockhausen the scheme sounded dodgy as hell when I read the details too. Even 20 years ago anything "offshore" and "loan" related would have been a big red flag to the inland revenue.
 
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Very sad that he felt no choice but to end it all.

Seems like a ridiculous loop hole but I'd put the blame more on those that promoted / recommended it and also on HMRC for allowing the wiggle room for such schemes to be concocted in the first place.

To apply such a long period of retrospective taxation is going to cause a lot of distress for those that don't have the funds to pay it though I wonder what sort of figures are being agreed to be paid voluntarily.
 
obviously I am wrong but I thought tax accountability only went back 7 years, which would mean anything pre 2012 I thought would now be irrelevant.

like i say, obviously I am wrong but it is news to me.
 
bigmike20vt said:
obviously I am wrong but I thought tax accountability only went back 7 years, which would mean anything pre 2012 I thought would now be irrelevant.

like i say, obviously I am wrong but it is news to me.
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I was never involved remotely in anything like these “loan” schemes when I was self-employed, and when I retired in February 2012, my accountant said, “Keep all your books, tax demands and receipts for tax paid, bank statements, cheque stubs, etc. for 7 years, after that you’re home free”, adding, “you probably got away with murder, but you signed a statement that in effect, cleared me of anything that you may have done wrong, as I counselled you to always tell the truth to HMRC.
 
I too thought it was seven years. But I am guessing they are asking for voluntary back tax for longer to avoid prosecution and a fine over the seven years.
 
Would the 7 year thing be irrelevant in this case because it's concerning loans which are still considered to be 'live'?
 
Jean-F said:
I was never involved remotely in anything like these “loan” schemes when I was self-employed, and when I retired in February 2012, my accountant said, “Keep all your books, tax demands and receipts for tax paid, bank statements, cheque stubs, etc. for 7 years, after that you’re home free”, adding, “you probably got away with murder, but you signed a statement that in effect, cleared me of anything that you may have done wrong, as I counselled you to always tell the truth to HMRC.
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But clearly what you were involved in with tax avoidance which was illegal though going by what your accountant told you???
 
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No1newts said:
Go by the rule "if it's too good to be true, it probably isn't" facing tax and you are fine.

I cannot for a single moment believe this guy thought it was legit to be only paying 1/2% tax, he clearly saw it, saw the monetary gain and ploughed on in. Him and others like him are tax dodgers, clear and simple and they should be made to pay up now they've been caught. Either that or they or terminally stupid/ignorant and that isn't a defence either.
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Entirely my thoughts on it too.
 
stockhausen said:
I feel that HMRC's draconian response appears to be entirely unreasonable but how anybody could ever have believed that this was an acceptable tax dodge is a mystery to me.

The crooks who dreamt up and encouraged the use of this scheme should certainly be held personally responsible for its consequences.
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I am sorry I have very little sympathy. If for 20 years your have only been paying 1-2% tax per annum and HMRC now want you to make an offer otherwise they are going to hit you with a £120k tax bill (on average) then clearly you are a criminal who has been fiddling the state out of their taxes for 20 years.

No different to a serial criminal committing crimes for 20 years and then finally getting caught and deciding to commit suicide.
 
Obviously this man was assassinated by government elites to prevent him from telling all he knows about the corrupt cabal avoiding tax at our expense. There can be no other explanation.
 
What about this bit?

Thousands got paid net of tax and fees via payment services companies that they were directed to by the agencies that employed them. Typically, about 18% of their pay would be deducted.
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Am I reading this wrong or they got their after tax amount, it's the companies that paid them that got a saving?
AKA they still got what they'd have got if they'd paid tax, but the government got screwed?

And even if i'm wrong what about:

Others had no choice because their employers, including many public sector employers, insisted on trust-loan arrangements as a condition of employment.
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Nothing is ever a black and white situation, do I want people who avoid tax to be reprimanded and the tax paid? 100%. But sticking people who might not have been in the wrong with a sudden deadline of a few months away for 20 years of something they weren't even aware was an issue strikes me as a bit off. At the very least work with them over a period of time to repay.
 
Every year I fill out my tax return it asks me if I'm part of a tax avoidance scheme.

And here comes HMRC to crush yet another one.

They know all about them, it's just a question of them wading through the paperwork to get at you and get their money.

Evangelion said:
Obviously this man was assassinated by government elites to prevent him from telling all he knows about the corrupt cabal avoiding tax at our expense. There can be no other explanation.
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I can't believe people are lapping up the establishment story.

X other person went through with debt and bankruptcy without killing themselves.

We will never know the true facts now he's dead.

Typical coverup.
 
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Joshct said:
But sticking people who might not have been in the wrong with a sudden deadline of a few months away for 20 years of something they weren't even aware was an issue strikes me as a bit off. At the very least work with them over a period of time to repay.
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HMRC started telling people about this in 2016 I think, anyone who has left it until now to worry about it only has themselves to blame in that scenario.

They've been offering settlements, payment plans etc.
 
Hard to have too much sympathy. Reads very much like all the people that suddenly realised that they didn't own their houses after paying an INTEREST ONLY mortgage for 30 years with no plans to pay of the capital. Either you are borderline retarded or you know exactly what you are doing. You know its dodgy if you are not paying taxes through the normal means and you are clearly happy not to contribute your fair share to society whilst profiting from your dishonesty.

Have the same amount of sympathy when "celebrities" end up with millions of pounds in unpaid taxes. Pay your damn taxes or suffer the consequences.
 
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