• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Unsolicited 2011/12 letter + from HMRC

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    #11
    Originally posted by mav2010 View Post
    Agreed! The extra 15k actually makes a lot of difference when taxed at 40% I would pay them 12k today if it meant getting them off my back. I can even provide bank statements to prove the loan amounts were 15k less than what they state. Scared to pick up the phone and speak to them though
    If you have data showing a lower value, then a simple letter to them along the lines of, "I've checked my bank statements and they say that the loans were £xx,xxx. Please issue an amended assessment and in the meantime suspend collection".

    If you don't want to speak with them, appoint somebody else to do it.
    Best Forum Adviser & Forum Personality of the Year 2018.

    (No, me neither).

    Comment


      #12
      Originally posted by webberg View Post
      If you have data showing a lower value, then a simple letter to them along the lines of, "I've checked my bank statements and they say that the loans were £xx,xxx. Please issue an amended assessment and in the meantime suspend collection".

      If you don't want to speak with them, appoint somebody else to do it.
      Thanks for the advice.

      Should I send them my bank statements to prove this as well?
      On the calculation page they have provided am I right in assuming the "Other Income" is purely for the loans?

      The other two amounts they have used to come to a figure for "total income received" are "Profit from partnerships" and "pay from all employments" which was my wage basically.

      Comment


        #13
        Originally posted by mav2010 View Post
        Thanks for the advice.

        Should I send them my bank statements to prove this as well?
        On the calculation page they have provided am I right in assuming the "Other Income" is purely for the loans?

        The other two amounts they have used to come to a figure for "total income received" are "Profit from partnerships" and "pay from all employments" which was my wage basically.
        Bank statements - I would say not.

        Other income - probably, yes.
        Best Forum Adviser & Forum Personality of the Year 2018.

        (No, me neither).

        Comment


          #14
          Discovery letter and prior years

          ok thanks - I have read a number of the threads and it is a bit hit and miss, i wonder if they are just starting with the most recent year and then once the whole process of appeals etc then they will also go for the other prior years.. The earlier years were all with the same scheme (same trust) and I know that all information within the trust was reported with the disclosure facilities to HMRC.

          Originally posted by webberg View Post
          These threads are full of information on time limits.

          Broadly though, if you submitted returns for the earlier years and have had no enquiry letter or assessment, chances are that HMRC have missed those periods and cannot now recoup them.

          Read the threads though as this is not a simple process.

          Comment


            #15
            If you were self-employed for that period, HMRC are definitely after more than the tax on the loan amount, they are currently asking people for the "full amount that was paid by the client".

            Comment


              #16
              Originally posted by Tomandjerry View Post
              If you were self-employed for that period, HMRC are definitely after more than the tax on the loan amount, they are currently asking people for the "full amount that was paid by the client".
              Yeah that's what the "Other Income" figure looks like. They are trying to include the full amount that was paid by the client. Are they having a laugh? I've never received the amount that went to the Scheme Provider. How can I pay tax on money I've never seen?

              Comment


                #17
                Originally posted by mav2010 View Post
                Yeah that's what the "Other Income" figure looks like. They are trying to include the full amount that was paid by the client. Are they having a laugh? I've never received the amount that went to the Scheme Provider. How can I pay tax on money I've never seen?
                Because the analysis used by HMRC says you have had it.

                Their analysis says that 100% of the money went to you and you then volunteered (by signing an agreement) to pay the scheme provider. That payment is not tax deductible and ergo; you are taxed on the full value.

                The fact that you allowed the Scheme Provider to syphon off their fees and pay you the net, does not detract from the legal analysis HMRC allege. The above is just a convenient mechanism and does not alter who owned what cash legally.
                Best Forum Adviser & Forum Personality of the Year 2018.

                (No, me neither).

                Comment


                  #18
                  Originally posted by webberg View Post
                  Because the analysis used by HMRC says you have had it.

                  Their analysis says that 100% of the money went to you and you then volunteered (by signing an agreement) to pay the scheme provider. That payment is not tax deductible and ergo; you are taxed on the full value.

                  The fact that you allowed the Scheme Provider to syphon off their fees and pay you the net, does not detract from the legal analysis HMRC allege. The above is just a convenient mechanism and does not alter who owned what cash legally.
                  Are you suggesting if I wish to settle I just accept this analysis and pay up?

                  Comment


                    #19
                    Why don't you ask them under which legislation or case they are asking you for the amount paid by the end client to the supplier. I don't think they can tell you. It is ludicrous.

                    Comment


                      #20
                      Originally posted by mav2010 View Post
                      Are you suggesting if I wish to settle I just accept this analysis and pay up?
                      It's not analysis, it's synthetic thinking.

                      Comment

                      Working...
                      X