Under these arrangements, the users receive a substantial proportion of the fees for their services in payments which are said to be loans. But HMRC does not agree that these arrangements succeed in avoiding tax.
On its website, HMRC says:
"Individuals using these schemes may have received letters opening enquiries into their recent returns. Over the coming months, HMRC will be sending tax assessments to those who have used these schemes between 2008 and 2011. If you receive an assessment you can either:
- accept the assessment and pay the tax due
- appeal against the assessments and begin the process to have your case heard by an independent tax tribunal if you canít reach an agreement with HMRC"
Further information about the rules on assessing and how to appeal will be issued with the assessments.
HMRC advising that anyone can contact them via email to discuss paying the tax due, the assessments or the use of the arrangements, you can send HMRC an email with any questions, information or requests for a call back .
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Susie Hughes © Shout99 2013