To think it's fair these tax avoiders pay the tax that's due?

[SuzzieWithEthics]

This scheme was dodgy from the start but lots of NHS and it contractors used it for years. Now face having a bill for hundreds of thousands. But all that's due is the tax they avoided. So it's all fair right?

www.theguardian.com/money/2019/feb/16/thousands-of-workers-hit-with-massive-tax-avoidance-bills?CMP=Share_iOSApp_Other

I don’t think unjust is true. I think non repayable loans do have an obvious smell to them.

I think that they do need repaying but it is not for anyone who avoids taxes in any ways (including ISAs) to rush to moral judgment.

I also think that there should be a limit in how far the HMRC can reach back to reclaim taxes. I believe there is in avoidance (start an investigation within 5 years of scheme if I remember correctly?),

Are they claiming these schemes were fraudulent in order to reach back 10-20 years as some are claiming??

The contractor who worked for HMRC - the due diligence that government departments go through before they agree to work with agencies is extensive - it’s unrealistic to say they didn’t know that individuals working through them were being paid in this way. (Not that anyone is claiming that).

It’s just ludicrous to go after individuals for such large amounts when corporations who also benefited are in the clear - especially as the corporations can actually afford to pay - so HMRC would be more likely to actually get the money!

@Hadalifeonce both myself, one of my brothers and a good friend question everything our accountants do and double-check things but most people do not. If you start talking to people you will find a good number of people who have been completely ripped off by their accountant or have an accountant who refuses to refund them a small amount of money owed to them.

I remember going on a free VAT classroom session over 10 years ago where I learnt a lot including it isn't wrong to double-check your accountants advice. HMRC scrapped them for online learning as it was cheaper though the class was full. The inspectors shared more tax knowledge than just VAT.

So while you know the basics most people don't. Oh and my accountant does my P60 but unlike my previous accountant she better at checking my figures are correct.

HMRC itself used contractors operating through these umbrella schemes.

If the tax office itself participates in an arrangement like this, can you understand why the average contractor thinks that it must be above board? Most of them were getting deductions from their pay that were similar to the amounts they'd pay for tax, but they didn't realise that actually only a small fraction was going for tax and the agency was creaming the rest off as a fee. Their tax returns were being done by the scheme's accountant for them.

How many of you are employed and trust that your payslip is correct every week/fortnight/month? You realise that you are responsible for underpayment of tax in the same way that these contractors are? That there's nothing to stop HMRC coming after you and demanding thousands in unpaid tax because your employer got it wrong.

People who are in reality "employed" get away with saying they are "self-employed". As in the BBC.

HMRC turn a blind eye to it, until they don't.

Employers are 100% at fault, and employers should bear the cost, or reinstating these people as employees.

Note that in most cases the employees/contractors won't be getting protection from dismissal, holiday pay, sick pay, pensions etc etc.

Now I've read the link, this is far worse than personal services companies. This is tax evasion, pure and simple and deservedly the employees should be paying tax on any such income. The employers recommending/setting up the scheme should be fined.

This is far worse than what certain well known entertainers investing in film companies got brought to book over.