Contractor loan schemes

HMRC have announced that tax assessments will be sent to those contractors and other professionals who have sought to avoid tax by entering into a contract of employment with an offshore employer while providing their services in the UK. HMRC does not agree that these arrangements succeed in avoiding tax. Individuals who used schemes of this type between 2008 and 2011 may already have received letters opening enquiries into their returns report Harris & Co chartered accountants Northampton, the specialist small business accountant.

An individual receiving an assessment can either:

•accept the assessment and pay the tax due; or

•appeal against the assessment and begin the process to have their case heard by an independent tax tribunal if an agreement can’t be reached with HMRC.

Further information is available from HMRC.

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