We at C4J Ltd have worked tirelessly to find a resolution for Contractors or Workers affected by the Loan Charge Legislation.

During this time we have seen numerous challenges  in the Courts with cases such as Hoey (First Tier Tribunal and Appeal to Upper Tier Tribunal) and Finucane (Court of Session), and while we don’t profess to have found a way to defeat the Loan Charge,  we have identified in conjunction with both Leading Tax and Employment QC’s another angle to mitigate the tax liabilities being imposed by HMRC.

So how can C4J help?

C4J are able to assist Contractors or Workers in reclaiming moneys already paid to HMRC under the Loan Charge Legislation. If you have settled your indebtedness with HMRC under a Settlement Agreement, entered into a Time to Pay Arrangement (TTP) or have paid or are paying, an Accelerated Payment Notice (APN), we will seek to recover those monies for you.

 In addition, we are also able to claim Holiday Entitlement that you should have received but did not.

How are C4J able to reclaim these monies?

Under Tax statute a Contractor or Worker is chargeable to Income Tax and Class 1 NICs on sums earned under the Income Tax (Earnings and Pensions) Act 2003 (“ITEPA”) on the basis that:

(a) The sums constitute “earnings” from employment under the general provisions in ss 10 and 62 ITEPA; and

(b) The sums earned are to be treated as “earnings” from employment under the provisions relating to persons providing services through an agency in s 44 ITEPA (and corresponding provisions relating to NICs) (“the agency rules”).

The Agencies are to be regarded as the employer for the purposes of the PAYE rules;

(a) Accordingly, under those rules, those parties were liable to (but did not) deduct the income tax and Class 1 NICs due in respect of the earnings from sums paid by them under the arrangements.

HMRC was entitled to, but did not take action to enforce such obligations against those parties, and they are as culpable as the Agency.

It is both our and Counsel’s view that as a consequence of the failures by the Agencies:

(a) The contractor or worker is entitled to claim from the Agency for any pecuniary loss they suffered as a direct result of the Intermediary placing you into a tax avoidance structure, which has resulted in you suffering a loss.

(b) Under the Law of Principal & Agent, the Principal (The Agency) is liable for the actions of their Agent (The Intermediary) and if you suffered a loss as a result of the Intermediary’s actions, then the Principal is responsible under Law for that loss you suffered.

We will also cite as part of our claim that The Agency were negligent in their failure to operate PAYE under the Agency Rules (s44 ITEPA).  If they had applied these rules, which they had an obligation to do so (because you were supplying personal service to the client) then the Loan Charge would never have been enacted as it would not have been necessary.

Under normal circumstances, the Law of Tort allows a claim to be brought within three years of someone finding out they have a claim and allows a claimant to go back six years from that date. However, under certain circumstances, this can be extended to 15 years where it can be shown and proven the person was “Wilfully Neglect or Negligent.”

We believe the Agencies are Wilfully Neglect as the judge defined this in R. v IRC ex p. Chisholm (1981) STC 253, who stated “Wilful” means ‘deliberate’ or ‘intentional.’ The persistent failure to deduct tax must therefore have been ‘wilful’, which is also supported by our QC.

So how much is this going to cost?

C4J operates on a “no win no fee” basis also known as a conditional fee arrangement that allows you to make a compensation claim without financial risk. You only ever pay anything if your claim is successful.

C4J are offering two options for Loan Charge clients:-

Option 1 – Pay no registration fee and pay on No-Win/No-Fee success fee of 40% plus VAT based on any award you receive as per our website

Option 2 –. Alternatively, pay a registration fee of £249.99 (including VAT) and pay a No-Win/No-Fee success fee of 25% plus VAT based on any award you receive.

How do I join up, and what am I expected to provide?

Simply go to the registration page and fill out the registration form.

Upon receipt of your completed registration form, you will be sent a questionnaire, our DBA Agreement, and a request for KYC. We will also ask you to supply supporting documents such as copies of Settlement Agreements, Time-to-Pay Arrangements, APN Notices or any correspondence from HMRC concerning the Loan Charge.

If you wish to take advantage of the discounted success fee, once you have completed the registration process, pay the registration fee (£249.99) to the bank account given below.

Account Name:                                   C4J Ltd

Sort Code:                                            20-50-21

Account Number                               33175936