No To Retro Tax – Campaign Against Section 58 Finance Act 2008

[MMSguru]

Bad News

Happy New Year to everyone.

I had a letter from HMRC dated 21 December 2012 with the following heading "Check Self Assessment Tax Return - Year ending 5 April 2011". When the law changed in March 2008 I then moved onto the loans scheme with Montpelier until November 2010. It seems that HMRC are now going to investigate me for that the period of 2010/11. HMRC have attached a copy of the letter that they have sent to Montpelier requesting various explanations.

Has anyone else received a similar letter?

I've received enquiry letters for all returns from 2005 through to 2013. I think HMRC routinely send enquiry letters to all tax planning scheme users. Are NTRT able to clarify?

[DonkeyRhubarb]

I've received enquiry letters for all returns from 2005 through to 2013. I think HMRC routinely send enquiry letters to all tax planning scheme users. Are NTRT able to clarify?

These days if you put anything on your tax return which indicates use of a scheme then it's pretty much automatic that HMRC open an enquiry.

There is no statutory time limit for them to complete enquiries and many get left open indefinitely, unless you force the issue by demanding closure (insisting they put up or shut up). Unsurprisingly, very few people are willing to put their head above the parapet and do this.

[MMSguru]

Good News

I had a letter from HMRC dated 21 December 2012 with the following heading "Check Self Assessment Tax Return - Year ending 5 April 2011".

I think the Revenue can only open an enquiry up to 12 months from the date you filed your return with them. If they wrote to you on 21/12/12 then have they missed the 12 month deadline?

[DonkeyRhubarb]

I think the Revenue can only open an enquiry up to 12 months from the date you filed your return with them. If they wrote to you on 21/12/12 then have they missed the 12 month deadline?

Year ending 5th April 2011 would have been filed Jan 2012, so 21/12/12 would be within the 12-month window.

Of course, even if they miss the window, they can still use discovery to open it late.

Heads they win, tails you lose.

[Ninja]

Happy New Year to everyone

Happy New Year to everyone.

I had a letter from HMRC dated 21 December 2012 with the following heading "Check Self Assessment Tax Return - Year ending 5 April 2011". When the law changed in March 2008 I then moved onto the loans scheme with Montpelier until November 2010. It seems that HMRC are now going to investigate me for that the period of 2010/11. HMRC have attached a copy of the letter that they have sent to Montpelier requesting various explanations.

Has anyone else received a similar letter?

I received one too

[centurian]

Year ending 5th April 2011 would have been filed Jan 2012, so 21/12/12 would be within the 12-month window.

Is it 12 months from when you file it, or 12 months from the self assessment deadline.

Okay many people tend to file in late December/January, so often there isn't much difference.

But if you do file it in mid April, does that reduce the enquiry window by 9 months?

[DonkeyRhubarb]

Is it 12 months from when you file it (A), or 12 months from the self assessment deadline. (B)

Okay many people tend to file in late December/January, so often there isn't much difference.

But if you do file it in mid April, does that reduce the enquiry window by 9 months?

It used to be (B) but the rules changed at some point to (A).

Montpelier prepare returns for filing in late January so, as you observe, there isn't much any practical difference.

[Morlock]

Is it 12 months from when you file it, or 12 months from the self assessment deadline.

Okay many people tend to file in late December/January, so often there isn't much difference.

But if you do file it in mid April, does that reduce the enquiry window by 9 months?

Yes. And they can only open an enquiry after the closure of the 12 month window by using their "discovery" protocol - which means that there must have been info missing from your return (either carelessly or deliberately). If you declare all the relevant info on your return, then there is nothing to discover, and you have a case for saying that the discovery protocol cannot be used. It makes sense to file your returns early, so that the window will close earlier.

[smalldog]

just got a google alert I have setup against MP, this dounds ominous for those involved!:

International Adviser: HMRC to investigate investors in Manx tax avoidance scheme

[BrilloPad]

just got a google alert I have setup against MP, this dounds ominous for those involved!:

International Adviser: HMRC to investigate investors in Manx tax avoidance scheme

I have no objection to HMRC challenging such schemes. I am quite happy for HMRC to challenge the double taxation scheme.

What I object to is retrospective legislation based on lies.