AM Limited COP8 HMRC Investigation Letter..

[DotasScandal]

Then if HMRC are declaring that whole income paid to Scheme Provider is taxable, then is it not the responsibility(law) of the Scheme Provider to deduct tax & NI? That's in essence the latest finding from the Murray(Rangers) appeal, regardless of finer details, if the income was paid directly to the scheme provider then deduction of ALL taxes should have been made by them.
Also CLSO made a deduction of scheme fees, didn't this set a precedent too?

The schemes discussed here are not "employment" schemes... Therefore I believe Murray does not apply.

[webberg]

My understanding is that in the CLSO (open until last September) the net amount received via the loan was treated as taxed income "by concession".

HMRC's core argument as seen in the Murray case, is that the income is taxable as it arises from the employer. Consequently the gross loan is taxable.

As is pointed out, some of these schemes are not employment schemes and as such the above argument may not be applicable.

Just an example of confused thinking.

[LandRover]

My understanding is that in the CLSO (open until last September) the net amount received via the loan was treated as taxed income "by concession".

HMRC's core argument as seen in the Murray case, is that the income is taxable as it arises from the employer. Consequently the gross loan is taxable.

As is pointed out, some of these schemes are not employment schemes and as such the above argument may not be applicable.

Just an example of confused thinking.

So then if many non-dotas schemes were PBT (Partnership Trusts) and so each partner deemed self-employed, then the Partnership itself was paid the income, it did not go directly to the individual, hence the deduction of tax should have been at the receiver of such income? If not then tell me any self-employed person who does not claim expenses in his line of work.

I am no expert on Partnerships, but they exist for many professionals such as Solicitors, Lawyers etc. If they generate Income for the Partnership then how do they enumerate the individual partners?

[Raj121279]

I got as well for the tax year 2011-2012

I have received the same from HMRC.

Whats the final out put of these guys?

Is AML taking any responsibility?

I got as well..
1. AML does not have tax return copy for 2009/10
2. AML took atleast 18% from the contract rates and did nothing !!!!
3. This tax should be paid by AML not by us. Since HMRC is taxing us on 100% where as we got 82%. So we will be paying 18% + 35% .. this is not right
4. If there is any legal avenue to get 18% back from AML then we all should come together and jointly ask AML..

Any thoughts?

[Raj121279]

I got as well for the tax year 2011-2012

I (stupidly) fell into the trap of the EBT/PBT structures and was taken in with the 'it's 100% legal' and the 'Counsel Approved' sales pitches, along with the 85%+ take home! Fortunately, I changed to running my own Limited Company as of the beginning of this year, mainly direct to clients now.

I was hoping that my naivety (and to be honest, my stupidness) wouldn't come back and bite me in the butt. I finally saw that it wasn't as 'legal' as they made out and was not worth the risk.

Today, I have received a letter from HMRC, which starts with "Thank you for your Tax Return for the year ended 5 April 2011." The letter goes on to say "I would now like to check your return. My check will be made under Section 9A Taxes Management Act 1970, and under HMRC Code of Practice 8 - cases where serious fraud is not suspected."

They go on to explain few general things about how they will conduct this check fairly, and go on to say;

"I note that during the year you took part in arrangements whereby you had entered into a contract of employment with an offshore employer AM Limited and in due course received sums of money in the form of loans or expenses."

Would you please let me know

• What sums you received in the form of loans or expenses during this year endded 5 April 2011, either directly or indirectly with your engagement with AM Limited.
• What amounts of loans you have since repaid, and on what dates.

As you can imagine, I am very worried, haven't properly slept since I got the letter and not sure what happens next. I have asked AM Limited what to do next as I am assuming that it is not just me that is been asked these questions. A tax specialist has advised that this is a 'Project case' and HMRC will be targeting everyone who usedAM Limited.

I have a few questions...

1. I have already provided them the amounts on my Tax Return, why are they asking for the same figure again?
2. Obviously I haven't paid any of the loan back -I am trying to find out what I should answer this question with.
3. When I provide this information, are they going to straight away slap me in the face with a bill for PAYE and NI against the loan amount, or will that come once they have challenged the AM Limited EBT structure/vehicle in a court?
4. If they do send me a tax bill for PAYE/NIC against the loan, for example, for around £60,000, and I cannot afford it (which I can't!), can I pay them monthly? I don't want to go bankrupt.
5. I expect that if AM Limited will not help me, I will need some professional representation to deal with HMRC, and hopefully get across to them, that I was an idiot. Does anyone have any sort of idea how much someone like this would cost to do the communication between me and HMRC?

Constructive comments only please. I know I was naive, I know I was stupid to even go near these companies, but I saw this and changed things earlier this year.

Really grateful in advance. I hope the questions above will be helpful to anyone else in my situation.

Thanks,
(a very worried) Neo222

whats the final out come Neo??

[Raj121279]

Can I get PM rights also please?

[Raj121279]

HMRC Tax Avoidance letter

Hello All,

I have received a tax avoidance letter for FY 2011-12 in the last 2 weeks reg the tax avoidance as I was with AML Loan agreement (I was only with them for an year and moved on), I didn’t even realised it was illeagal.

I have emailed AML reg this and they haven’t come back to me yet on this.

I was go through the forums and I can see there were few people in the same situation as mine in the past, so can you please advise me whats the best option for me to do in this situation and what was the outcome in each of your cases?

Any sort of information is highly appreciated in this regards.

Many Thanks in advance.

Cheers

[webberg]

Replicating posts will confuse you.

AML are apparently resisting HMRC's claims. You will have to speak with them about how and when.

HMRC are determined that most contractor schemes create tax liabilities.

Many groups that have grown from and are being advised by those who sold the arrangements believe otherwise.

Independent groups are thinner on the ground and are a mix of resistance via litigation and technical negotiation.

You pay your money and take your choice.

Which you join (if any) will depend to a degree on your appetite for conflict.

[Raj121279]

Contacted AML and below is the response from them....

HMRC have a timeframe in which to issue these assessments before April 2016, so they are essentially trying to get their foot in the door. When we appeal the letter we will postpone the assessed tax and reduce it to nil whilst this process is ongoing. We will file the appeal on your behalf and notify you by email. We will begin a dialogue with HMRC to ultimately reverse the obligation put upon you to make this payment. If these discussions do not bear fruit, then we will proceed directly to Court to argue our position in relation to the validity of the planning.

In order for AML to appeal on your behalf I have attached the letter stating that AML are your agent, would you please be able to send us a signed copy via email and post the signed original to Mr Rees.

Letter basically says as follows....
I hereby authorise AML Tax (IOM) Ltd to act on my behalf in respect of your check into my return period for the year ended 5 April 2012.

In regards to how HMRC calculate the figures; we are not privy to this information. Our past experiences with HMRC show that they often make inconsistencies with amounts and we are unable to fathom how HMRC make these calculations. It seems that HMRC have given the largest figure, this is part of HMRC’s intimidation tactics which you may have experience in the past. Please be assured that we are handling this situation and we are here if you have any queries.

AML stand firmly behind our planning and will ensure it is defended from challenge by HMRC. If you do receive any communication directly from HMRC, please forward all correspondence to us immediately upon receipt. As stated above, we will notify you when we have filed your appeal so there is no further action required from you at this moment in time. If you have any further queries, please do not hesitate to contact us.

Contacted WTT and their response is as below:-
They are offering help and their rates as below...

<mod snip>

Few Questions:-
Can i be represented by both AML and WTT?
Does WTT of any help and is it worth going with them?

Please shed some light in this situation..Many thanks for your time here

[regron]

Few Questions:-
Can i be represented by both AML and WTT?
Does WTT of any help and is it worth going with them?

Please shed some light in this situation..Many thanks for your time here

Speaking from personal experience only:

Yes, you can be represented by both (I am)
Yes, I am glad I joined WTT (Big Group).