Have you been contacted by HMRC demanding payments with regards to the loan charge scheme? If you have previously been involved in what is now considered a “tax avoidance” scheme you may have HMRC requesting huge amounts of money from you in relation to unpaid tax.
In 2017 the “Loan Charge” was introduced and many people from all walks of life have now had demands of payment from HMRC. Many people worked in finance, IT and Construction via Umbrella Companies, many of which were based offshore and have since liquidated leaving people stranded with no help or advice in relation to these sudden payment demands.
Over 50,000 users have been estimated to have been affected by this retrospective taxation and in most cases, people have used these types of schemes for at least two years. As most of these people received a high income at the time the tax demands can be extremely high.
The scheme has attracted much criticism and is controversial to say the least. People have been hit with thousands of pounds of outstanding tax and subject to your circumstances this can be a very tricky situation to deal with.
In HMRC’s view these “loans” were never designed to be repaid-hence why they are now classing them as income. Over the years the position of HMRC has changed from trying to tax the employer or umbrella corporation to taxing the person that received the payments.
HMRC have agreed various schemes with regards to repayment including settlements and placing charges against property that has reasonable equity, but this does not help people in certain situations.
So, what other solutions are there to consider?
Filing bankruptcy from abroad due to the HMRC Loan Charge
The BfA Group have helped many clients to clear their retrospective tax demands using the option of bankruptcy. People living overseas are not immune to the demands from HMRC and in many cases filing bankruptcy in England can clear all outstanding tax demands.
We have dealt with clients from Australia, Canada, Asia, and America who have found themselves in this awkward situation. Filing bankruptcy from abroad can clear all debts in the UK; even if they have not been fully calculated or clarified by HMRC.
Filing bankruptcy to clear HMRC loan charge demands, means that the person will be bankrupt in England for 12 months. As soon as you are bankrupt all HMRC tax demands will cease and HMRC will have to clarify any final outstanding liabilities directly to the Official Receivers office. In many cases this will resolve the situation that you are in.
We would advise using our consultation service and arranging to speak to one of our advisors. If you proceed with our bankruptcy service, we can deal with HMRC on your behalf and advise you every step of the way.
Contact us now for friendly advice and assistance.