BN66 - Time to fight back (Chapter 3)

[BrilloPad]

For anyone also considering this; I contacted TQ about settling the loan payments that I received since mid-March, and here's how to do it...

I note your comment about the loan payment from the Rathowen Business Benefit Trust, please inform John Cuddy's team in the IOM that you want the loans written off and they will become taxable income in 2008/2009.


DR: Perhaps put this on the front page?

Very interesting post : I hope DR put on front page.

Can we pick in which year to get the loan written off?

[BrilloPad]

Also - I may have missed some posts - why are there users wanting to write off the loans? Is the scheme not very sound?
Ta.

The scheme is probably sound. But I dont like it as much as the double tax thingy.

[Acaman]

HMRC shuts down new personal tax avoidance scheme

Noticed that HMRC have closed a new tax avoidance scheme:
http://www.accountancyage.com/accoun...rc-cracks-200m

Interestingly this was shut down in 'a matter of days' and does not apply retrospectively. Is this because they were on siolid ground with this one?

Details of closure http://www.hmrc.gov.uk/news/pta-technote.htm

If they want to close a scheme surely this is the way to do it.

[DonkeyRhubarb]

What I'm trying to achieve

I want to back the Govt into a corner. By making the following allegation, I am hoping to give them little room for manoeuvre.

Both Committees specifically asked how long and to what extent HMRC had been aware of the scheme but at no point did the Government disclose any details of HMRC's ongoing investigation.

I hereby allege that the Government withheld details of HMRC’s investigation, which the Committees should have been made aware of, in order to make the use of retrospection appear more legitimate.

It is a matter of written record that the Committees were not told any details of HMRC's investigation, so the only possible responses are:

1) HMRC didn't tell the Govt and the Govt didn't bother to ask

2) The Govt asked HMRC but HMRC fobbed them off with a load of BS

3) HMRC did inform the Govt but the Govt didn't think the Committees needed to know

none of which are acceptable.

[Emigre]

I want to back the Govt into a corner. By making the following allegation, I am hoping to give them little room for manoeuvre.

Both Committees specifically asked how long and to what extent HMRC had been aware of the scheme but at no point did the Government disclose any details of HMRC's ongoing investigation.

I hereby allege that the Government withheld details of HMRC’s investigation, which the Committees should have been made aware of, in order to make the use of retrospection appear more legitimate.

It is a matter of written record that the Committees were not told any details of HMRC's investigation, so the only possible responses are:

1) HMRC didn't tell the Govt and the Govt didn't bother to ask

2) The Govt asked HMRC but HMRC fobbed them off with a load of BS

3) HMRC did inform the Govt but the Govt didn't think the Committees needed to know

none of which are acceptable.

Great work DR on all our behalf. On your draft letter, run it through a spellchecker before sending (concealed). Its the kind of letter I suspect they won't answer but if they do it will have all the same words that we have seen previously. The good news is it becomes public record.

The Govt require us to account to them for every penny we earn and, from a business perspective, every penny we spend. Yet according to the earlier posts about MPs expenses they are not prepared to do the same, even though we are paying for them. I'm also reminded of the Treasury Minister's response to the question of the HMRC cost benefit of chasing IR35 claims - something along the lines of "we don't keep information at that level"!! This would make an interesting FOI request, to demonstrate lesson not learned or their true motives?

Bottom line is they are the cheats and liars but believe they can avoid such criticism through retrospectively sweeping it all under the carpet. Unfortunately for them such action is evasion, not avoidance, and is illegal.

[ChimpMaster]

Very interesting post : I hope DR put on front page.

Can we pick in which year to get the loan written off?

If you write off the loan, what tax will you become liable for? Will it be 40% of the loan? Wouldn't this be not far off what HMRC are seeking from you anyway?

[BrilloPad]

If you write off the loan, what tax will you become liable for? Will it be 40% of the loan? Wouldn't this be not far off what HMRC are seeking from you anyway?

I would guess it would depend on your income already. AFAIK HMRC have not attacked many loan schemes : yet. I am sure there was a thread on one such loan scheme.

just found a link http://forums.contractoruk.com/624671-post295.html

[nuffsaid]

Also - I may have missed some posts - why are there users wanting to write off the loans? Is the scheme not very sound?

It probably is safe and I haven't seen anything to suggest otherwise. I personally just didn't like the idea of having it as a loan for life.

Can we pick in which year to get the loan written off?

I didn't specifically ask this question but would presume that you could write all or part of if off at any time.

[seadog]

I wish I had more time to pull everything together and visit my MP armed with a very clear and specific dossier of accusations and questions.

I think it would be an excellent idea if we had a single ducument which outlined all the statements questions responses and non responses from HMRC, Jane Kennedy, the various committees etc in a single document which we could all then take to our MP's.

This would suely show the poor case whcih HMRC have and the underhand way in whcih they have dealt with this matter

[nuffsaid]

If you write off the loan, what tax will you become liable for? Will it be 40% of the loan? Wouldn't this be not far off what HMRC are seeking from you anyway?

Yes, it would be taxed at the normal rates so there is no financial gain from writing it off... unless you get put on the bench and settled it at the start of a new tax year...
and didn't earn much else for the rest of the tax year...

... and didn't need the potential tax money to get through the year.


Of course it could bump you into the new £140k @ 45% bracket if your not careful.