The Way Ahead
There has been a lot of panic on the forum recently – it’s been a week since the judgement was handed down and it’s now time to be rational and level headed.
The Judicial Review
The Judicial Review was dismissed. But this is far from over. I have studied the judgement and I can tell you that to my layman’s eye it is flawed in both fact and law. However, the judge has done us a great service in bringing this into the court system and sending us to a higher court.
Update
In the next few days, everyone who used the scheme should receive an update from his or her provider. This will not give exact details of the basis of appeal, and there will be no substantive discussion of the same on the forum either. But it is clear that there are strong grounds for appeal.
Amnesty?
In addition, while it might be tempting for HMRC to offer an amnesty, the tax planning industry cannot allow this judgement to stand. Because of how the judgement was worded, it is essential to their business that this judgement is corrected. We now stand with some of the biggest names in the industry.
Can HMRC demand payment?
I think the biggest question on everyone’s mind is whether HMRC can now demand payment of any tax that they claim is ‘due’. I don’t believe they can. If you have received a closure notice then your provider should have appealed that notice. All notices under appeal are suspended pending the outcome of the judicial review. The judicial review is not over until either a verdict is accepted (ie 28 days have passed without an appeal) or the courts have refused appeal.
If HMRC pushed for payment then the taxpayer would demand a hearing at the tax courts. That court would be bound to adjourn pending the outcome of the higher court (in this case the Court of Appeal or (if we’re lucky) the Supreme Court). If HMRC are extremely awkward then we can ALL demand a hearing. HMRC could combine all the cases for the purposes of the DTA part but due to the structure of the scheme every single individual has elements of the scheme that would have to be decided individually – they would have to grant all 2 – 3,000 hearings. It’s in their interests to wait on this one.
Should I save cash?
Yes, if only to reduce the stress of the threat. Put the money in a Cash ISA with a interest rate better than HMRC's rate.
When will the next hearing be?
It’s going to be months until this gets back to court. There will be a written application for an appeal – this will probably be rejected (just as our original JR was), then there will be an oral hearing. Then a hearing will be heard. This will probably be at the Court of Appeal but it could go directly to the Supreme Court as this has now become a very important and constitutional issue. Our case could be fast tracked but the word right now is that it will be towards the end of the year.
So what to do?
If you receive any letters from HMRC consult your provider. Don’t be alarmed, you know their letters will arrive on a Saturday morning and you know they are bullies. Let your provider deal with them.
If you receive any ‘unusual’ or particularly alarming letters from HMRC – then report them on here. We can still write to our MP’s. It’s high time that HMRC had a ‘duty of care’ imposed on it – the rest of us have.
The Way Ahead
Other than that, get through Winter, look forward to Spring, have a great Summer
and we’ll see you back here in the Autumn.
There has been a lot of panic on the forum recently – it’s been a week since the judgement was handed down and it’s now time to be rational and level headed.
The Judicial Review
The Judicial Review was dismissed. But this is far from over. I have studied the judgement and I can tell you that to my layman’s eye it is flawed in both fact and law. However, the judge has done us a great service in bringing this into the court system and sending us to a higher court.
Update
In the next few days, everyone who used the scheme should receive an update from his or her provider. This will not give exact details of the basis of appeal, and there will be no substantive discussion of the same on the forum either. But it is clear that there are strong grounds for appeal.
Amnesty?
In addition, while it might be tempting for HMRC to offer an amnesty, the tax planning industry cannot allow this judgement to stand. Because of how the judgement was worded, it is essential to their business that this judgement is corrected. We now stand with some of the biggest names in the industry.
Can HMRC demand payment?
I think the biggest question on everyone’s mind is whether HMRC can now demand payment of any tax that they claim is ‘due’. I don’t believe they can. If you have received a closure notice then your provider should have appealed that notice. All notices under appeal are suspended pending the outcome of the judicial review. The judicial review is not over until either a verdict is accepted (ie 28 days have passed without an appeal) or the courts have refused appeal.
If HMRC pushed for payment then the taxpayer would demand a hearing at the tax courts. That court would be bound to adjourn pending the outcome of the higher court (in this case the Court of Appeal or (if we’re lucky) the Supreme Court). If HMRC are extremely awkward then we can ALL demand a hearing. HMRC could combine all the cases for the purposes of the DTA part but due to the structure of the scheme every single individual has elements of the scheme that would have to be decided individually – they would have to grant all 2 – 3,000 hearings. It’s in their interests to wait on this one.
Should I save cash?
Yes, if only to reduce the stress of the threat. Put the money in a Cash ISA with a interest rate better than HMRC's rate.
When will the next hearing be?
It’s going to be months until this gets back to court. There will be a written application for an appeal – this will probably be rejected (just as our original JR was), then there will be an oral hearing. Then a hearing will be heard. This will probably be at the Court of Appeal but it could go directly to the Supreme Court as this has now become a very important and constitutional issue. Our case could be fast tracked but the word right now is that it will be towards the end of the year.
So what to do?
If you receive any letters from HMRC consult your provider. Don’t be alarmed, you know their letters will arrive on a Saturday morning and you know they are bullies. Let your provider deal with them.
If you receive any ‘unusual’ or particularly alarming letters from HMRC – then report them on here. We can still write to our MP’s. It’s high time that HMRC had a ‘duty of care’ imposed on it – the rest of us have.
The Way Ahead
Other than that, get through Winter, look forward to Spring, have a great Summer
and we’ll see you back here in the Autumn.
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