BN66 - Court of Appeal and beyond

[Godber]

Retrospective Pension Contributions

I have made enquiries into making backdated pension contributions and under the new pensions legislation you are able to apply contributions to the last three tax years up to a max of £50k per year. Unfortunately, you have to use this tax years £50k up before moving on to previous years!

Hope this helps

[DonkeyRhubarb]

I have made enquiries into making backdated pension contributions and under the new pensions legislation you are able to apply contributions to the last three tax years up to a max of £50k per year. Unfortunately, you have to use this tax years £50k up before moving on to previous years!

Hope this helps

Thanks for this. Unfortunately, the last tax year of the scheme was 4 years ago - 2007/8.

Many people like myself were in it 10 years ago.

[johnnyguitar]

Thanks for this. Unfortunately, the last tax year of the scheme was 4 years ago - 2007/8.

Many people like myself were in it 10 years ago.

So, should be looking into case law for a ruling where a person was allowed to make retrospective changes to their tax return ? There's got to be one somewhere.

[seadog]

retrospective tax planning

So, should be looking into case law for a ruling where a person was allowed to make retrospective changes to their tax return ? There's got to be one somewhere.

Its not just pension contributions.

If HMRC had told us their view that Partners included Trusts and their beneficeries we would have kept the money in our company as retained profit and paid 20% tax. As it stands they now want 40% tax and NI.

How fair or proportionate is that?

Something for the QC to raise at the Supreme court appeal.

[bve534]

Retrospective pension payments

The retrospective change to the tax law in S.58 goes back to 1987 although in reality to 2001.

Therefore I am seeking to make retrospective pension payments dating back to the tax year 2001-2002 and for every year thereafter until tax year 2007-2008. Just for the record, in tax year 2006-7 the pension allowance was £215,000 and for 2007-8 was £225,000, capped at 100% of an individuals earnings. So if an individual earned £225,000 in year 2007-2008 they could pay that sum into their pension fund. With the tax relief available (from HMRC) on these contributions that adds up to an interesting sum. It is tax deductible and the payment receives additional contributions from HMRC based on the level of tax being paid. I realise not everyone can make such payments but I would rather hand it over to a pension company to squander (and remember I lost a very large sum with Equitable Life in 2001!!).

Yes we know the pension laws say this cannot be done and they will fight it tooth and nail but a precedent has been set with the introduction of retrospective tax law changes with demands for tax and penalties going back to 2001, therefore a precedent should be applied to pension payments. At least it should in a true democracy!!

An individual should be allowed to arrange his tax affairs to his own advantage is an unwritten UK rule, which MP mentioned in a reference to the House of Lords, at the very first seminars. If a democracy decides retrospective taxation on their citizens is acceptable then those citizens should be given the opportunity to retrospectively arrange their tax affairs.

Regards

[screwthis]

The retrospective change to the tax law in S.58 goes back to 1987 although in reality to 2001.

Therefore I am seeking to make retrospective pension payments dating back to the tax year 2001-2002 and for every year thereafter until tax year 2007-2008. Just for the record, in tax year 2006-7 the pension allowance was £215,000 and for 2007-8 was £225,000, capped at 100% of an individuals earnings. So if an individual earned £225,000 in year 2007-2008 they could pay that sum into their pension fund. With the tax relief available (from HMRC) on these contributions that adds up to an interesting sum. It is tax deductible and the payment receives additional contributions from HMRC based on the level of tax being paid. I realise not everyone can make such payments but I would rather hand it over to a pension company to squander (and remember I lost a very large sum with Equitable Life in 2001!!).

Yes we know the pension laws say this cannot be done and they will fight it tooth and nail but a precedent has been set with the introduction of retrospective tax law changes with demands for tax and penalties going back to 2001, therefore a precedent should be applied to pension payments. At least it should in a true democracy!!

An individual should be allowed to arrange his tax affairs to his own advantage is an unwritten UK rule, which MP mentioned in a reference to the House of Lords, at the very first seminars. If a democracy decides retrospective taxation on their citizens is acceptable then those citizens should be given the opportunity to retrospectively arrange their tax affairs.

Regards

I can't agree more with this.

I don't accept that HMRC are the only party who can use the time machine and that we will have no hope of implementing this.

They are telling us we have to pay full tax and full NI.
They are resetting things to "normal" parameters.

Under normal parameters we are able to plan our tax affairs.
To be denied these rights that every tax payer has is beyond unfair.

I will speak to HMRC myself about this if it comes to it.
They need to explicitly refuse us this right and provide a reason why.

What possible reason can they put forward apart from that we tried to flaunt the law and are therefore being punished.

If we are denied pension contributions it is not a level playing field.
The COA judgement relied in part on the premise that we were getting an uncompetetive advantage over other service providers whose businesses had to pay full tax. If we are not allowed to plan our tax affairs within normal parameters then we are being given an unfair disadvantage.

[RedWine]

could anyone recommend an accountant ......

Due to personal situations I am considering plea bargaining with the IR - can anyone recommend a good accountant who understands the situation and could help with negotiations? Preferably in the London area but for the right person it doesn't matter too much. I am sure I read something 1/2 years ago on the old blog but I can't find it now.
Any advise much appreciated.
and thanks for keeping us up to date with the blog - its the only way I know to find out what is going on.

[DonkeyRhubarb]

Due to personal situations I am considering plea bargaining with the IR - can anyone recommend a good accountant who understands the situation and could help with negotiations? Preferably in the London area but for the right person it doesn't matter too much. I am sure I read something 1/2 years ago on the old blog but I can't find it now.
Any advise much appreciated.
and thanks for keeping us up to date with the blog - its the only way I know to find out what is going on.

I have PM'd you.

[phileds]

DR - am thinking the same re entering negotations - could you PM me as well (any thoughts appreciated)

[DonkeyRhubarb]

DR - am thinking the same re entering negotations - could you PM me as well (any thoughts appreciated)

Will do.

I think it's very unlikely that you will get much in the way of concessions but I can't see any harm in asking.

A word of warning though.

I would be very wary about contacting HMRC yourself. Unless any negotiation is done without prejudice you could find yourself being tricked into admitting liability.

It's best to go through an accountant or tax advisor who is experienced at dealing with them.