Steve D., London
“I am writing this testimonial to protest against the APN retro tax legislation of 2014 and in addition the “Tackling disguised remuneration Technical Note 16th March 2016” paper raised the March Budget 2016. I currently have no APNs against me but the new proposed law is effectively an APN in disguise which will trigger in April 2019.
I am a hard working UK contractor. I’m not a rich person financially and believe this is the case for many contractors. We are highly skilled workers who are experts in our field and work for clients who have specific projects. We are not employees of these companies and receive none of the benefits and therefore take the risk that once the project is completed we have to find other assignments.
Past governments brought in the IR35 which was not meant to be directed towards contractors who work in this way, however HRMC and HMG have been using IR35 to target such contractors. Due to uncertainty with IR35 I signed up with a scheme which I told was fully legal and compliant with HMRC and had QC backing.
I now have a discovery assessment for the first year that I was with the scheme and am expecting more to come in the coming months for other years I was with the scheme. I have stopped using the scheme.
This is causing me and my family immense stress. I can’t believe that something that was legal can now be retrospectively called illegal (something that HMRC has failed to prove so far). If HMRC believe that these schemes do not work and therefore deemed illegal, then why have they dragged their feet for so long in closing down the schemes?
I am in my early fifties so I am not a young person. Getting contract work will become harder for me due to my age and HMGs onslaught on contractors trying to make a living. At this rate I’ll have very little pension as I may have to use some of my pension pot to pay for this “retrospective” unfair tax. I’m very stressed out for the future of myself and my family. I have three children all still at school so won’t be able to help them through university and therefore their prospects are harmed by this legislation. It’s totally unacceptable that HMG is being allowed to introduce these bills – they either do not care or do not understand that they will ultimately destroy many families.”