Contractor loan schemes

HM Revenue & Customs (HMRC) is challenging arrangements used by contractors and other professionals to avoid tax by entering into a contract of employment with an offshore employer, while providing their services in the UK. Under these arrangements, the users receive a substantial proportion of the fees for their services in payments which are said to be loans. But HMRC does not agree that these arrangements succeed in avoiding tax.

Individuals using these schemes may have received letters opening enquiries into their recent returns. Over the coming months, HMRC will be sending tax assessments to those who have used these schemes between 2008 and 2011. If you receive an assessment you can either:

  • accept the assessment and pay the tax due
  • appeal against the assessments and begin the process to have your case heard by an independent tax tribunal if you can’t reach an agreement with HMRC

Further information about the rules on assessing and how to appeal is being issued with the assessments.

Contacting HMRC

If you would like to contact HMRC to discuss paying the tax due, the assessments or the use of the arrangements, you can send HMRC an email with any questions, information or requests for a call back (Monday to Friday, 8am to 5pm).

Contact HMRC by email

Alternatively, you can call the phone number on the correspondence sent with your assessment.

Tax agents and advisers

If you're an agent acting on behalf of a client using these arrangements, you can also email HMRC if you have any general questions about the assessments or the technical position.