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An answering machine message at Contractor Financial Planning's London office says simply: "We have ceased trading, please refer to Tenon Recovery."
Simon Thomas, a Director at Tenon Recovery, has been appointed liquidator of the company by the members.
Mr Thomas said: "About 240 people are owed money by Contractor Financial Planning Limited. The Revenue raised an assessment greater than the company was expecting.
"The liquidator, once his appointment has been confirmed by the creditors will have to conduct a detailed investigation to establish precisely what the position is."
Mr Thomas said there would now be a creditors' meeting on the 11 November.
CFP was previously called 'Dignatio Corporation Ltd.'
Prior to that, it was: 'Creative Style Consulting Limited.'
Mr Celso Meira, a Portuguese businessman, is the sole Director of CFP and was also the Managing Director of Dignatio.
The Dignatio Corporation offered freelance IT workers an 'employment benefit trust' which promised a return of up to 80 per cent on gross contract income so long as its recommendations were applied, according to an advertisement published last April.
Companies' House said 'Dignatio Corporation Limited' dissolved voluntarily on 14 September 1999, having filed a 652A form on 23 March that year.
The advert, published on April 9 2001, invited freelance IT workers who were caught by IR35 to manage their finances in 'a tax efficient way' under Dignatio's direction.
The 'employment benefit trust' operated by the company was held by 'Keystone Global Bank' before it was recently acquired by 'Maranatha Bank', which according to its website, is based in Podgorica, Montenegro.
Freelancers at CFP received an email from Maranatha Bank's IT Department explaining they would not be able to access their accounts whilst the 'systems of both organisations were merging.'
It added: 'Please be aware that all funds available within the Keystone Web Site will be available within the Maranatha Web Site.'
Kevin Miller, IR35 expert, said: "We have always counselled caution when dealing with schemes that claimed to take a contractor outside IR35, especially when they involved complex structures that lacked commercial rationale and/or overseas elements. The Inland Revenue has long said it will look closely at such schemes.
"While I am not familiar with the specific circumstances in this case it seems likely that the Revenue may well have raised tax assessments on the basis that the scheme did not avoid the additional liabilities that can arise if IR35 applies to the company's income, or that payments by the company to the employment benefit trust were held not to qualify for tax relief in the company's corporation tax computations. Anyone considering entering into such a scheme must ensure that the scheme has been vetted beforehand by a reputable tax expert as being technically sound and above Revenue attack."
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Richard Powell, © Shout99.com 2002
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