Settlement Opportunity

[Rob79]

HM Revenue & Customs: Settlement opportunity: tax on contractor loans

I have yet to read this in detail other than to note it expires 9th January 2015.

Might be worth a thread of its own?

[lastManStanding]

HM Revenue & Customs: Settlement opportunity: tax on contractor loans

I have yet to read this in detail other than to note it expires 9th January 2015.

Might be worth a thread of its own?

Erm, doesn't this say that you can settle with them for the whole amount now if you like - PAYE and NIC? You will only get relief on the benfits in kind you paid for the loan.

What's the incentive to settle now?

[lastManStanding]

On second reading - it seems to imply that it is open to users of a scheme

"Who can do this?
You can take up this opportunity if you're an individual who has used a contractor loan scheme"

But then follow the link to read more about the settlement opportunity and the first line tells you

"HM Revenue & Customs (HMRC) is offering employers who have used Employee Benefit trusts ('EBT') (and similar arrangements) the opportunity to resolve outstanding enquiries."

Seems bit confusing as to who it is actually aimed at.

[fielder]

I have a question relating to this if I may? Where HMRC have clearly got their costings wrong, would this be an opportunity to get the facts straight, specifying monies received only as I did nothing wrong in the eyes of the law then. Even thought I only used EBT for 14 months there calculation are pretty much the same over for both 08/09 and 09/10, clearly wrong plus I have no way of paying this back straight away if they do issue an APN, or should I wait for the APN assuming I will get one before January 2015, thank you.

[convict]

Why are they even bothering with this? Basically this is no different to what one could always do; withdraw one's appeal in line with S54 TMA 1970 and then pay within 30 days.
http://www.legislation.gov.uk/ukpga/...ion/54/enacted

[Rob79]

I will have a proper read of this over the weekend and feedback any thoughts.

In other areas of tax, this sort of settlement opportunity arrives from HMRC in advance of what they consider to be a tipping point in a Court decision. That is usually in the build up to a case going to Court or in the interegnum between hearing and decision.

This gives HMRC the ability to play hardball in any discussion post a positive decision (for them) in calculating tax, interest and penalties. It also allows them to splinter action and litigation support groups as some will always be tempted to settle and not continue.

These offers are rarely "commercial" and in some cases the amounts being asked for have little or no concession to common sense. In many cases therefore the effect achieved is the opposite to that hoped for. For some however the prospect of a loss in Court and the resulting heavy interest and penalty applications is enough. In other tax product areas, liability can be many times the amount invested and that can also be a significant factor.

As I said, I'll have a proper read and report back my thoughts for whatever they're worth.

[lastManStanding]

I have a question relating to this if I may? Where HMRC have clearly got their costings wrong, would this be an opportunity to get the facts straight, specifying monies received only as I did nothing wrong in the eyes of the law then. Even thought I only used EBT for 14 months there calculation are pretty much the same over for both 08/09 and 09/10, clearly wrong plus I have no way of paying this back straight away if they do issue an APN, or should I wait for the APN assuming I will get one before January 2015, thank you.

If you believe the amount of tax HMRC deem is due is incorrect, and even if it were correct you don't have the money straight away, perhaps your best bet is to wait for the APN, wait until the 90 days to pay are nearly up, and then send a letter by recorded delivery to arrive with hmrc before the 90 day deadline requesting that the amount be changed as you believe it is incorrect. You will have to support your reasoning with proof of the actual amounts you received, and then if hmrc agree with you they will issue a re-calculation which I believe gives you a further 30 days to pay.

Its not much of an improvement on your situation, but its probably better than appealing the amount now, in which case you would only get 90 days to pay when the apn arrives

[fielder]

If you believe the amount of tax HMRC deem is due is incorrect, and even if it were correct you don't have the money straight away, perhaps your best bet is to wait for the APN, wait until the 90 days to pay are nearly up, and then send a letter by recorded delivery to arrive with hmrc before the 90 day deadline requesting that the amount be changed as you believe it is incorrect. You will have to support your reasoning with proof of the actual amounts you received, and then if hmrc agree with you they will issue a re-calculation which I believe gives you a further 30 days to pay.

Its not much of an improvement on your situation, but its probably better than appealing the amount now, in which case you would only get 90 days to pay when the apn arrives

Thank you!

[Aisling81]

Past April 2011

• Hi,
  
  Just wanted to ask- we have enquiries open on 2010/2011 and 2011/2012.
  
  Hmrc are being very evasive about how matters are settled after this. Has anyone had any feedback from hmrc about what they plan to do? They say u may not be able to settle as in previous years.. Which makes me think they will put further penalties on these years??
  
  Also- we used the scheme 2012/2013 but have no enquiry... Cascade update say if you don't have a query open on a year then that makes attractive to settle.. Does that mean we would never get charged for that year if we settled for the above mentioned 2 years??
  
  Sorry for all the questions- all these updates are pretty baffling.. And tend to say very little in my opinion!
  
  Thanks for your help!

[EBTContractor]

Settlement Opportunity

It would be silly to settle unless you have other stuff going on in the tax years in question that HMRC hasn't found out about and a settlement is beneficial to you.

HMRC's point of view is really one sided, they only make references to Boyle, not their defeat in the Rangers Tax Case.

Another scare tactic to hit payment targets and aimed at those who didn't cough up when the first round of letters were sent.

If I had a spam button on my letterbox I'd click it.