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HMRC enquiries for EBT schemes through SANZAR

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    Hi All,

    Just joined and interested in joining the private group.

    Can I please get the PM rights first admins?

    Thanks

    Comment


      Private Group Access

      Originally posted by atthebeach View Post
      Hi, can I please have PM access to contact Old Kent Road regarding the Sanzar private rgroup.

      thanks.
      Hi Admin / Old Kent Road, Can someone please grand me PM access so I can contact Old Kent Road about the Sanzar private group.

      thanks.

      Comment


        Originally posted by atthebeach View Post
        Hi Admin / Old Kent Road, Can someone please grand me PM access so I can contact Old Kent Road about the Sanzar private group.

        thanks.
        Also just joined, can somebody grant me access to PM so I can contact Old kent Road to gain access to the private group. I've received a letter from HMRC wanting 20K, even after they accepted and processed my old tax return and gave me 10 pound back! I don't live or work in the UK anymore and need to find out what my options are or any lawyers that are familiar with the case that can assist.

        Comment


          Originally posted by ap79118 View Post
          Also just joined, can somebody grant me access to PM so I can contact Old kent Road to gain access to the private group. I've received a letter from HMRC wanting 20K, even after they accepted and processed my old tax return and gave me 10 pound back! I don't live or work in the UK anymore and need to find out what my options are or any lawyers that are familiar with the case that can assist.
          If you're saying you have received an assessment relating to one of the tax years (which year was it and what's the assessment date), then your options really are limited.

          You will see from reading this forum that 1000's of people are in the same boat, thought that everything was fine and then got hit with huge tax assessments.

          I guess living abroad then you could potentially tell HMRC to poke it (depending on where you live), but for £20k it's not an approach I would take, as that will screw you up UK wise big time.

          £200k.....that's a different story.

          Comment


            There was some talk of this but no firm conclusion in that can we claim expenses for the Sanzar years 08 onwards?
            So after summing up the salary and loans received can we negate our expenses (most significantly mileage) before calculating our 'tax' owed?
            I can't see why not, this will help reduce the numbers considerably for some.
            Any views?

            Comment


              Originally posted by creativity View Post
              There was some talk of this but no firm conclusion in that can we claim expenses for the Sanzar years 08 onwards?
              So after summing up the salary and loans received can we negate our expenses (most significantly mileage) before calculating our 'tax' owed?
              I can't see why not, this will help reduce the numbers considerably for some.
              Any views?
              Claiming expenses against self employed earnings requires that the money was spent "wholly and exclusively" for the business. There are some rules about duality of purpose but HMRC's usual approach for those is to agree a proportion that relates to the business.

              Claiming expenses against a salary requires that the cost is incurred "wholly, exclusively and necessarily in the performance of the duties". This is a much harder test to pass. Costs incurred that put you in a position of being able to carry out the duties (usually travel) would not be allowable UNLESS you had a job that required you to work in multiple locations.

              Therefore if HMRC are alleging that the income is salary, a deduction for costs will be more problematic than if the income is treated as self employment income.

              In turn, this leads to the point about whether HMRC see the loans received as "net salary" or "gross income". I've stated my analysis of that elsewhere (and been shouted down for it) so I'll not repeat it here.

              Comment


                Originally posted by creativity View Post
                There was some talk of this but no firm conclusion in that can we claim expenses for the Sanzar years 08 onwards?
                So after summing up the salary and loans received can we negate our expenses (most significantly mileage) before calculating our 'tax' owed?
                I can't see why not, this will help reduce the numbers considerably for some.
                Any views?
                I chatted to HMRC re this. Their view is that a small amount may be acceptable, but it would need to be receipted and they would reserve the right to investigate such expenditure in detail.

                Comment


                  Originally posted by jbryce View Post
                  I chatted to HMRC re this. Their view is that a small amount may be acceptable, but it would need to be receipted and they would reserve the right to investigate such expenditure in detail.

                  Lets not forget guys that HMRC are NOT claiming that any of these loans were salary, they're purely stating that they're 'additional income', which I believe changes the rules slightly.

                  Remember that if HMRC want to class everything as salary, then I believe they're then duty bound to pursue Sanzar (or it's directors) for payment of all PAYE debts. This is the key reason I believe why they are NOT classing the income as salary, as otherwise they're pushing the liability firmly back onto employers, and that's a battle they really don't want, as scheme promoters have far deeper pockets than scheme users.

                  I've been advised that where you can prove mileage / trains etc were incurred, and where that cost was not re-claimed from Sanzar, then they're valid.

                  This would be providing your employers address was not that of the end client. So seeing as everybody had an employer based in the IoM, and that's also what your self-assessments, P45 and P11D says, it would be a hard one for HMRC to then say you can't claim travel costs to a site in London for example, as that it clearly not your registered place of work.

                  Again, I wouldn't try and claim £50k in mileage for the year, but stick to your guns, it's an allowable expense, incurred 100% in the line of business.

                  HMRC are too damn eager to try and make out that claims like this are not allowed, yet the professional opinion of multiple tax specialists say otherwise.

                  On a separate note, can you believe I was cold-called yesterday by a company trying to sell me an off-shore tax solution to reduce my tax no less. They're obviously getting desperate to get punters, as this has never happened before.
                  Last edited by MrO666; 1 October 2014, 08:18.

                  Comment


                    Originally posted by MrO666 View Post
                    I was cold-called yesterday by a company trying to sell me an off-shore tax solution.
                    Can you share their telephone number? I feel certain there will be a few takers from forum members reading these EBT threads .

                    Comment


                      Thank you 066,

                      That's very interesting, that will reduce my figures a lot as I my expenses were mainly mileage which were required to visit the clients premises due to the equipment being large and very bespoke (I'm an engineer). As for proof, well no fuel receipts from 08-09 years but I have a log of miles and bank statements. The proof of travel is in my type of work.

                      Originally posted by MrO666 View Post
                      Lets not forget guys that HMRC are NOT claiming that any of these loans were salary, they're purely stating that they're 'additional income', which I believe changes the rules slightly.

                      Remember that if HMRC want to class everything as salary, then I believe they're then duty bound to pursue Sanzar (or it's directors) for payment of all PAYE debts. This is the key reason I believe why they are NOT classing the income as salary, as otherwise they're pushing the liability firmly back onto employers, and that's a battle they really don't want, as scheme promoters have far deeper pockets than scheme users.

                      I've been advised that where you can prove mileage / trains etc were incurred, and where that cost was not re-claimed from Sanzar, then they're valid.

                      This would be providing your employers address was not that of the end client. So seeing as everybody had an employer based in the IoM, and that's also what your self-assessments, P45 and P11D says, it would be a hard one for HMRC to then say you can't claim travel costs to a site in London for example, as that it clearly not your registered place of work.

                      Again, I wouldn't try and claim £50k in mileage for the year, but stick to your guns, it's an allowable expense, incurred 100% in the line of business.

                      HMRC are too damn eager to try and make out that claims like this are not allowed, yet the professional opinion of multiple tax specialists say otherwise.

                      On a separate note, can you believe I was cold-called yesterday by a company trying to sell me an off-shore tax solution to reduce my tax no less. They're obviously getting desperate to get punters, as this has never happened before.

                      Comment

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