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HMRC in outflanking move

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    HMRC in outflanking move

    We are starting to see evidence of how HMRC will be approaching years 2011/12 and beyond.

    For those of you who made a return for that period but had no enquiry notice, you will get a letter saying that HMRC has examined 12/13 and have questions that may extend to 11/12 so can they please have some information. Relatively easy to deal with.

    For those of you who DID NOT make a return for 11/12 you are likely to get a letter asking you to make a return within 3 months. Failure to do so will result in a section 28C TMA 1970 determination.

    The determination is essentially an assessment based on HMRC guesses.

    You CANNOT appeal the determination.

    You CAN displace it by submitting the return.

    However the letter inviting a return starts with a warning that HMRC's Counter Avoidance team believe you have committed tax avoidance. The implicit threat is that a return without loan amounts will be seen as incomplete and perhaps open for penalty. A return with loan values shown as income is perhaps an admission of income that has escaped liability.

    Remember that this is SELF assessment, so you have to careful.

    Throw in Cotter and de Silva so that nobody knows what a return is or is not and we have a brewing recipe for more accusations of HMRC being less than straightforward.

    If you get a letter first check that you have not submitted a return or had one submitted on your behalf. If you are in this situation, just tell HMRC that.

    If you have NOT submitted a return - GET ADVICE.

    The rules here mean that the determination has to be issued before 31/1/16.

    The current crop of return requests has a deadline of late November. Expect more.
    Best Forum Adviser & Forum Personality of the Year 2018.

    (No, me neither).

    #2
    I never submitted a tax return. So you fill in the form with the loan amounts and then appeal any assessment. Why did you say "GET ADVICE" like that? What am I missing here?

    Comment


      #3
      Originally posted by foobar View Post
      I never submitted a tax return. So you fill in the form with the loan amounts and then appeal any assessment. Why did you say "GET ADVICE" like that? What am I missing here?
      If you complete the form claiming (via the white space) that the loans are loans and not taxable, you will almost certainly get an APN in due course and depending on how the return/claim is completed might leave yourself open to a penalty in due course, should HMRC win.

      If you complete the form and leave out any mention of the loans, aside from perhaps a BIK charge, HMRC will issue an APN and perhaps claim that the return is incomplete.

      If you complete the form and enter the loan values with no explanation, you may, depending on the outcome of the de Silva case (and a few others) have admitted liability.

      I'm saying that the situation is not simple and the scare tactics adopted by HMRC are not making it any easier either.

      Get professional advice.
      Best Forum Adviser & Forum Personality of the Year 2018.

      (No, me neither).

      Comment


        #4
        Is this only

        sent to people who did not receive a 2012/13 enquiry, or also people who did receive a 2012/13 enquiry?

        My situation is I received a 2012/13 enquiry about contractor loans and HMRC replied back saying no amends needed as I wasn't part of a contractor loan type arrangement, so assume I will not receive a new letter?

        Cheers.

        Comment


          #5
          I'm in the category where I did receive an enquiry for 12/13 and have also now received one of these letters

          Comment


            #6
            Should also add that the letter is for 2011/12 requesting self assessment which I find odd given I was in permanent employment for that tax year and therefore standard paye. Didn't move to contracting till July 2012

            Comment


              #7
              Originally posted by thebear14 View Post
              Should also add that the letter is for 2011/12 requesting self assessment which I find odd given I was in permanent employment for that tax year and therefore standard paye. Didn't move to contracting till July 2012
              I was also a PAYE employee in 2012 but still received one of these saying they believe I was involved in a scheme and that I need to submit my overdue self assessment etc..

              bolloks

              Comment


                #8
                How are you going to play it, send the self assessment back or wait till deadline and then query the validity given your perm status?

                Comment


                  #9
                  I've sent it back, didn't see any harm in doing so or reason not to.

                  Comment


                    #10
                    Fair point, if you weren't using the scheme at that point it'll make no difference. I'm just loathe to give them anything they ask for in any reasonable time frame

                    Comment

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