Hmrc coming after me after 7 years UMBRELLA COMPANY

[Pleasehelp7]

Hi there.

I am a teacher and always paid my taxes through PAYE, as I have always been employed by the schools and full time.
I get a letter through saying to submit my 2018/2019 SA form as they have records showing I need to do it. Naturally I submit online and tell them.i paid them.PAYE in these years and to go ask my employer (school).

I then read the letter they sent a little further and the issue is an umbrella company I used once for 6 to 8 months in 2015 when the school decided to go through a recruiter for me. This umbrella company has been liquidated and did some tax renumeration thing the gmrc has now clamped down on.

I had no idea they were not above board, and I don't know if they paid the right NI and tax or didn't. It was so long ago I don't have any paperwork etc to check, or anyway I can.

I am slightly angry this is happening now, especially when at the time I do remember the umbrella company saying they will handle everything and I didn't have to submit a tax return they would do it all. If the hmrc and government have since banned these companies, they should have no right to come after people who didn't have a clue this was all going on.

I do not know if I owe them or not,and when u factor in the whole interest they are talking about adding from 7 years ago, on something I had and still have no real idea I was liable for, I'm quite worried.

Please can anyone advise me, I'm desperate for some answers.

Kind regards

[wamstax]

Looks possible HMRC had the information that you had taken advantage of arrangements that might possibly be subject to the loan charge as at 5th April 2019

"The loan charge
The loan charge affects individuals if they used disguised remuneration tax avoidance schemes and they did not either repay their loans or provide HMRC with all the necessary settlement information on or before 5 April 2019.

The loan charge also affects employers who provided loan funds through disguised remuneration tax avoidance schemes if, on or before 5 April 2019, their employee or former employee did not repay their loans, or they did not provide HMRC with all necessary settlement information.

Paying the loan charge does not resolve the underlying tax dispute with HMRC for the years in which loans were made. Tax years that are subject to an open enquiry or assessment will still need to be resolved.".

If you had received any loans at any time and they were not repaid by 2018-19 then you would be best to engage the services of someone experienced in dealing with the HMRC Loan Charge.

However there is a more interesting point here in that you are silent as regards any previous enquiry notice being issued by HMRC that had either not been resolved (as still open) or not issued in the first place. It might also be that the issue isreally arounf the year 2018-19 as opposed to 2015-16 (which could of course still possibly be open if an enquiry notice was issued in respect of that year).

If however it is truly 2015-16 that HMRC are after - with no previous enquiry notice - they may have a great difficulty in recovering 2015-16( unless what you did was provable as deliberate or deliberate and concealed behaviour (as opposed to being wholly innocent or even careless ) and had not issued an assessment prior to 5th April 2022

Hope this helps but please note I do not touch "loan charge cases" but experienced in whether HMRC can recover duties or not based on your behaviour with regards to each year's tax compliance.

[wamstax]

Might also be worthwhile havig a read of the following

https://www.gov.uk/government/publications/disguised-remuneration-independent-loan-charge-review/guidance