HMRC/RCDTS contractors (summarised in FOI2020/01832) affected by the 2019 Loan Charge

The request was refused by HM Revenue and Customs.

Dear HM Revenue and Customs,

Following the information published in FOI2020/01832, which details 18 x different contractors (listed and identified in your response as Contractor 'A' through to Contractor 'R') who worked directly or indirectly for HMRC and/or RCDTS, please confirm:

a) which of these 18 x contractors (by using the same alphabetic identifiers) are subsequently affected by the 2019 Loan Charge,
and
b) which of those same 18 x contractors have received communication to that effect from HMRC.

Yours faithfully,

Adam Bridgen

no-reply@hmrc.ecase.gsi.gov.uk on behalf of FOI Team, HM Revenue and Customs

Our ref: FOI2020/02635

Dear Mr Bridgen,

Freedom of Information Act 2000 Acknowledgement

Thank you for your communication of 11th November which has been passed to
HMRC's Freedom of Information Team.

We have allocated the above reference which you should quote if you need
to contact us.

The Team will arrange for a reply to be sent to you which will either
comply with HMRC's obligations under Freedom of Information Act or, if we
think it's an enquiry that we don't need to address under the terms of the
Act, let you know why. If it is the latter we will, if possible, pass it
on to a more appropriate part of the Department for answer.

As you will appreciate, the coronavirus pandemic has provided
unprecedented challenges for Government Departments including HMRC. Over
the coming weeks our priorities are to provide critical existing and new
Public Services for Government to support customers during this difficult
time. As a result, resources may be diverted away from usual compliance or
information rights work. HMRC aims to respond to all FOIA Requests within
20 working days. If for whatever reason this timescale cannot be complied
with HMRC will, where possible, write to you explaining the reason for the
delay and providing an estimated time for response.

Yours sincerely

HMRC Freedom of Information Act Team

no-reply@hmrc.ecase.gsi.gov.uk on behalf of FOI Team, HM Revenue and Customs

1 Attachment

Dear Mr Bridgen,

We are writing in response to your request for information, received 11
November.

Yours sincerely,

HMRC Freedom of Information Team

Dear HM Revenue and Customs,

Please pass this on to the person who conducts Freedom of Information reviews.

I am writing to request an internal review of HM Revenue and Customs's handling of my FOI request 'HMRC/RCDTS contractors (summarised in FOI2020/01832) affected by the 2019 Loan Charge'.

Thank you for your earlier reply.

However, I do not feel that you have provided clear answers to the questions I asked.

In respect of the first question - "which of these 18 x contractors (by using the same alphabetic identifiers) are subsequently affected by the 2019 Loan Charge" - your response indicates that any individual identified through this analysis was already subject to compliance action for their use of disguised remuneration tax avoidance schemes. You follow that by saying that in some circumstances the relevant engagements began after 5 April 2019, therefore whilst subject to compliance action any disguised remuneration loans received during this period would not be subject to the Loan Charge.

This does not answer my question because the list of contractors in FOI2020/01832 includes two (H,I) whose start date is unclear as it only references the year 2019 - no month is listed.

So, please could you review your response and indicate clearly which contractors (identified as A through to R, excluding F and G as their start dates were December 2019) are affected by the 2019 Loan Charge? It is possible that some have been pressured to 'settle' and are therefore not subject to the Loan Charge, so please take this into account when confirming which of these are still subject to the Loan Charge.

In respect of the second question - "which of those same 18 x contractors have received communication to that effect from HMRC” - the only part of your response which I can see has any connection with this question is your statement that any individual identified through this analysis was already subject to compliance action for their use of disguised remuneration tax avoidance schemes. Your choice of wording does not explicitly confirm that any of these 18 x contractors have received communication to that effect from HMRC. What I want to know is which of those 18 x contractors have received actual communication from HMRC (presumably this would be written, but if there is any other kind used, please include that and clearly distinguish the difference in your reply) that they are subject directly, and specifically to the Loan Charge.

I also note from the information contained in FOI2020/01832 that the analysis which HMRC performed in 2018 to inform the letter to the House of Lords Economic Affairs Committee unfortunately turned out to be wrong. Later analysis concluded that, of those five individuals who had a history of using DR schemes, two of those five were actually using DR schemes at the same time they were working at HMRC, so the earlier analysis had in fact been 40% inaccurate.

On that basis, I would appreciate you being 100% accurate in your response to this internal review.

A full history of my FOI request and all correspondence is available on the Internet at this address: https://www.whatdotheyknow.com/request/h...

Yours faithfully,

Adam Bridgen

FOI Central Team, HM Revenue and Customs

Our ref: IR2021/00980

Dear Mr Bridgen,

Freedom of Information Act 2000 Acknowledgement

Thank you for your communication of 4th February which has been passed to
HMRC's Freedom of Information Team.

We have allocated the above reference which you should quote if you need
to contact us.

The Team will arrange for a reply to be sent to you which will either
comply with HMRC's obligations under Freedom of Information Act or, if we
think it's an enquiry that we don't need to address under the terms of the
Act, let you know why. If it is the latter we will, if possible, pass it
on to a more appropriate part of the Department f or answer.

As you will appreciate, the coronavirus pandemic has provided
unprecedented challenges for Government Departments including HMRC. Over
the coming weeks our priorities are to provide critical existing and new
Public Services for Government to support customers during this difficult
time. As a result, resources may be diverted away from usual compliance or
information rights work. HMRC aims to respond to all FOIA Requests within
20 working days. If for whatever reason this timescale cannot be complied
with HMRC will, where possible, write to you explaining the reason for the
delay and providing an estimated time for response.

Yours sincerely

HMRC Freedom of Information Act Team

FOI Central Team, HM Revenue and Customs

1 Attachment

Dear Mr Bridgen,

We are writing in response to your request for information, received 4
February.

Yours sincerely,

HMRC Freedom of Information Team