HMRC has opened the contractor loans settlement opportunity to enable recipients of such income to bring their tax affairs up to date. The amnesty applies to tax years up to 5 April 2011, and is open until 9 January 2015.
HMRC has opened the contractor loans settlement opportunity to enable recipients of such income to bring their tax affairs up to date. The amnesty applies to tax years up to 5 April 2011, and is open until 9 January 2015.
A contractor loan scheme is a tax avoidance arrangement under which a non-UK employer has paid untaxed income or granted a loan instead of salary. The recipient may be liable to income tax. HMRC has said about 16,000 people who used complex avoidance schemes involving offshore loans would be offered a ‘settlement opportunity’ to pay the tax and interest they owe by next January, or risk additional tax charges and penalties if the dispute ended up in the courts.
It has been reported that thousands of contractors in IT, finance, consulting and healthcare have been given these six months to settle a £430m dispute with HMRC over what it calls a ‘particularly aggressive’ type of tax avoidance scheme. On average, the users of the contractor loan schemes are said to face bills of £11,000 for each year they participated.
HMRC has opened the contractor loans settlement opportunity to enable recipients of such income to bring their tax affairs up to date. The amnesty applies to tax years up to 5 April 2011, and is open until 9 January 2015.
HMRC has opened the contractor loans settlement opportunity to enable recipients of such income to bring their tax affairs up to date. The amnesty applies to tax years up to 5 April 2011, and is open until 9 January 2015.
A contractor loan scheme is a tax avoidance arrangement under which a non-UK employer has paid untaxed income or granted a loan instead of salary. The recipient may be liable to income tax. HMRC has said about 16,000 people who used complex avoidance schemes involving offshore loans would be offered a ‘settlement opportunity’ to pay the tax and interest they owe by next January, or risk additional tax charges and penalties if the dispute ended up in the courts.
It has been reported that thousands of contractors in IT, finance, consulting and healthcare have been given these six months to settle a £430m dispute with HMRC over what it calls a ‘particularly aggressive’ type of tax avoidance scheme. On average, the users of the contractor loan schemes are said to face bills of £11,000 for each year they participated.
