BN66 - Time to fight back!!!

[smalldog]

I have got a tax assessment from HMRC and it only shows tax/nic + interest. None of the letters I have received from them have ever made any mention of penalties.

Me too, the only time a penalty has ever been mentioned is for not filing the accounts...The illustrations I got some time ago also didnt include any penaltis or mention of them.

[ASB]

I have got a tax assessment from HMRC and it only shows tax/nic + interest. None of the letters I have received from them have ever made any mention of penalties.

In my first hand experience of my investigation - which was as a result of paye compliance and then widened into an enquiry into all my personal SA returns penalties didn't crop up until we had finally agreed the assessment. i.e. it is part of of the closure process of the enquiry. Obviously current practice, or the particular sort of enquiry you are subject to may differ.

I hope they don't try and seek penalties from you - in my rather more simple case the best I could negotiate was 20% though. Everything had been disclosed on my tax returns - even to the extent of ticking a very specific box - but there was a case I didn't know about meant I shouldn't have ticked the box.

[Maddog]

have they included their fees, would that explain the difference?

No, I have accounted for their fees, the loan money and New Media's fees in all my calculations. I have no idea why they have me down as receiving this extra £12K. Their fees surely should not be listed on my SA as trust money received, should it? If they do, then it would amount to more than £12K. Hopefully I will get amended figures in the not distant future or an explanation as to the discrepancies.

I would, however, suggest other schemers check their own figures.

Mad

[smalldog]

No, I have accounted for their fees, the loan money and New Media's fees in all my calculations. I have no idea why they have me down as receiving this extra £12K. Their fees surely should not be listed on my SA as trust money received, should it? If they do, then it would amount to more than £12K. Hopefully I will get amended figures in the not distant future or an explanation as to the discrepancies.

I would, however, suggest other schemers check their own figures.

Mad

thats one of the good points, any monies owed will exclude fees as they wont have been listed as income on the SA... be interesting to see what HMRC's audit of the trust accounts shows...

[BrilloPad]

montp don't think any penalty will be due - all monies have been disclosed and the scheme itself been disclosed under the disclosure legislation back in 2004.

[TheGadgetMan]

montp don't think any penalty will be due - all monies have been disclosed and the scheme itself been disclosed under the disclosure legislation back in 2004.

but thats the whole point of my original post...Hector are asking for Partnership Accounts...well, before they go into Hector I want to be DAMNED SURE that they reflect the monies I received out of the scheme...and the only way I'm going to be sure is if I vet them before they are submitted...

I kept accurate records of every penny I received...and they match the amounts declared on my tax returns... I would expect the Partnership accounts to follow suit...

...as I said before, I received draft accounts a few years ago and they were totally wrong...this time around they've got be totally right...there is no room for error...

if there is any discrepancy between the partnership accounts and my submitted tax returns then MontyP will have just handed Hector a huge sledgehammer to hit with ME with...they'll claim that I didn't disclose everything on my tax return and 'Here's a 100% penalty, thank you sir!'...

I DON'T THINK SO!

I have confidence in MontyP to see us thru this mess - they are the experts...but at this stage, its now 'squeaky bum' time and they will be under huge pressure to complete all these accounts by the deadline...and there will be huge scope for mistakes to be made...

...any mistakes made at this stage could be catastrophic...I can (just about) handle the tax that will be due if we lose the argument...at a huge stretch, I might be able to cope with the interest...but I wont be able to pay a penalty even if its small in comparison - that might mean bankruptcy - I cant even imagine trying to explain that one to my kids and how they're lives would change...if a penalty becomes due because of MontyP errors then that will be a catastrophe...

[BrilloPad]

I kept accurate records of every penny I received...and they match the amounts declared on my tax returns... I would expect the Partnership accounts to follow suit...

When I ran a limited company the accounts rarely reflected reality. Not unless I thought hard and researched. One module of my degree was accountancy. But there is somec weird nonsense in there.

I would not expect much difference from partnership accounts.

What am I missing?

[poppy01]

just had my estimate from MP, 31k plus 11k interest, my wife just stormed out of the room. anyway on the bright side, MP's figures seemed to tally with mine, despite it being 5 years since i was in. never mind I can always just sell one of my 'portfolio' of properties, oh wait a minute, my portfolio consists of the roof over my head...bugger,

shame theres no smiley showing me putting a gun to my head and pulling the trigger....

oh there is

[SantaClaus]

RE: Warr and Co BN66 website

On the website, I found this snippet:

we have a strategy that we believe will allow over 50% of persons such as you to walk away with no tax liability in months rather than years. You won’t hear this option from your scheme provider because it will be them who pay the tax. To find out more click here.

So, in other words, Warr & Co claim there is only a 50% chance of getting you off the hook. Now, who thinks that Montpelier has a > 50% chance of winning? I certainly do.

One other things that springs to mind - if we pin the tax liability on Montpelier and the agencies, dont you think they will then try to sue us for the money? In my mind, that makes his scheme useless.

[DonkeyRhubarb]

just had my estimate from MP, 31k plus 11k interest, my wife just stormed out of the room. anyway on the bright side, MP's figures seemed to tally with mine, despite it being 5 years since i was in. never mind I can always just sell one of my 'portfolio' of properties, oh wait a minute, my portfolio consists of the roof over my head...bugger,

shame theres no smiley showing me putting a gun to my head and pulling the trigger....

oh there is

At least you have discussed this with your partner before the big brown envelope arrives. Some people will be completely unaware that tax assessments will be winging our way in a few weeks time.

I can see this creating a lot of tension in many families. I have suggested to MontP that they should write to everyone warning them about the impending assessments, and at the same time also providing more details of their strategy eg. timetable for the JR.