HMRC Enquiry letters on Loans from EBT and other schemes

[DonkeyRhubarb]

Just posted a guide on the main site about this:
Contractors' Questions: How to handle tax enquiry on loans from an EBT? :: Contractor UK

Written by Cobham Murphy.

The only issue I have with this is that it doesn't state the obvious.

Which is that people should contact the scheme promoter/provider in the first instance.

People paid substantial fees (c. 10%) to use these schemes and in most cases part of the fee would have been to cover defending the scheme against any challenge by HMRC.

[KnightRider]

Vthomsen in answer to your question to shevlane (I am in the same TRM 2008/2009 boat). I am inclined to use the below:



At the moment this seems for my circumstances the best way forward. The other letters posted seem to be particular to other companies and as has been said getting the appeal in is the first important step.

Other thoughts from TRM people on the above?

Hi Bluerover, I'm also in the same boat as you all are. And also hoping to use the same wording. However, I have gone through PCG to double check. I'll update you with any development on that later.

[Number5]

The only issue I have with this is that it doesn't state the obvious.

Which is that people should contact the scheme promoter/provider in the first instance.

People paid substantial fees (c. 10%) to use these schemes and in most cases part of the fee would have been to cover defending the scheme against any challenge by HMRC.

It also mentions an "Appeal form" that is included in the notice of assessment from HMRC. Did anyone receive the appeals form that Cobham Murphy refer to?

[DonkeyRhubarb]

It also mentions an "Appeal form" that is included in the notice of assessment from HMRC. Did anyone receive the appeals form that Cobham Murphy refer to?

Check with your promoter but a letter will probably do.

And remember to send it recorded delivery, so you have proof they signed for it.

[Michael J Perry FCA]

Professional specialist advice from a chartered accountant

We are not concerned with the tax structure or legal opinion on the schemes at this time. I am well aware of this on Talent, Cherrylon, Edge/Norla, AM Limited, Darwinpay, Sanzar, etc, etc.

We should be concerned at this point only with protecting the individual and making sure that they do not prejudice their case through incompetence and bad advice.

I would agree with you if the promoter (who caused the problems in the first place) was able to provide immediate, correct and definitive advice to contractors who are being confused and upset by conflicting views and advised to send replies to HMRC which are incorrect (in my opinion) and likely to be referred to Specialist Investigations Office for a technical reply and all that entails.

There is much more to come and is everyone expected to go through all this each time HMRC take some action?

The only safe advice is from a tax adviser who is a SPECIALIST in this ONE area and is also a member of the ICAEW Tax Investigation Practitioners Group or a suitably qualified and experienced CTA.

I am offering free advice because I feel strongly about people being misled but whilst I have no hidden agenda, I am also in practice and will represent clients that wish to instruct me.

I hope this clarifies my postings and do not think I can add anything further.

Good luck.

I applaud your offer to help but we are probably talking thousands of contractors here, across many variants of the scheme, who are affected.

Also, I think the first port of call for anyone should be the promoter who sold them the scheme. Only they will know the precise details of the tax structure and any legal opinion underpinning it.

[Vallah]

Where has anybody been misled Michael? The overwhelmong response from everybody has been to say "get your appeal in".

[cojak]

Be aware that I will not put up with squabbling on this thread...

I have been happy with the information placed on this thread by ALL vendor posters thus far. It is for readers to perform their own due diligence. We can not force people to speak to a Tax Specialist if they don't want to.

If I had not been happy any post would not have remained on here for long.

And as a wise regular once posted. 'Advice is worth the amount of money you spent on it'.

[DonkeyRhubarb]

And as a wise regular once posted. 'Advice is worth the amount of money you spent on it'.

I would add one caveat.

There are genuine advisors out there and there are also sharks/vultures, and it's not always easy to spot the difference.

Quite a few people affected by BN66 have been ripped off by advisors claiming they could help.

[mulberryblue]

letters from HMRC

I received a letter regarding Edge for 10/11, asking for details of all payments made in the form of loans. I sent details back about a month ago, but have not received anything further. Did those of you receiving assessments and requests to pay go through this process initially, or is the assessment the first you heard of it?

And do the requests for tax payments relate to EBT payments before or after Dec 2010, or both? I left the scheme in December 2010 and didn't receive any EBT payments after the HMRC announcement.

I am in the same position as you. I received the letters regarding 10/11 at the end of last year, and replied to those. Today I received a letter regarding 2008/9 and there assessment of unpaid tax due in 30 days. I left the scheme in January 2011 when the law changed. But not sure what to do - as I understood from Edge the EBT was an approved arrangement. Any advice appreciated.

[cojak]

I would add one caveat.

There are genuine advisors out there and there are also sharks/vultures, and it's not always easy to spot the difference.

Quite a few people affected by BN66 have been ripped off by advisors claiming they could help.

I'm speaking within the context of this thread, DR. But you are of course right (I'm making an assumption that everyone around here knows the meaning of the phrase 'due diligence' )