Talent Resource Management

[Michael J Perry FCA]

Cherrylon Marketing Limited

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Hi All,
I am new to this and I have been reading a few blogs on here to find one relevant to my situation and this seems the most relevant as TRM and Cherrylon have been mentioned.

I recently received a letter from HMRC Local Compliance office in Bootle thanking me for my Tax return for year end 5 April 2011 but they would now like to check my return and quated Section 9A Taxes Management Act 1970 under Code of Practice 8.

They note that I took part in arrangements whereby I was involved in an offshore scheme with Cherrylon and received sums of money in the form or Loans or Expenses.

1: They now want to know what sums I received as loans or expenses
2: what amount of the loans have since been repaid and on what dates.

Does this mean I am being investigated or are they fishing for evidence? It seems they are not actually aware of what I received as they ask about loans "or" expenses. It seems they have got wind of Cherrylon and chasing the people who signed up.

Does anyone have any experiance of this and any advise on what I should do?
I will try to contact Cherrylon but I believe they changed names or that scheme was transferred. I need to do more digging but this seemed a good place to start.

Any advice or feedback would be greatly appreciated as it seems we are all in the same boat here and we could all help each other.

I can confirm that various HMRC offices have been issuing letters last month relating to Cherrylon Marketing and Sanzar Solutions (and possibly others) for 2010/11 Tax Returns and they follow the same pattern as Talent Resource Management although they differ in as much as I understand these were EBT schemes and therefore different considerations apply.

I am awaiting replies from HMRC on a number of cases after responding to their opening letter and we will need to see how they intend to pursue these cases on an individual basis.

[Sammynbrown]

I can confirm that various HMRC offices have been issuing letters last month relating to Cherrylon Marketing and Sanzar Solutions (and possibly others) for 2010/11 Tax Returns and they follow the same pattern as Talent Resource Management although they differ in as much as I understand these were EBT schemes and therefore different considerations apply.

I am awaiting replies from HMRC on a number of cases after responding to their opening letter and we will need to see how they intend to pursue these cases on an individual basis.

Hi Michael,

I have also just recieved a letter from HMRC reqesting the same information. Can you please get in contact as i'm guessing you offer support / representation

Thank you.

[cojak]

I would suggest that you Google him or find him on LinkedIn.

Mr Perry is on a very short leash on this forum.

[BlasterBates]

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Hi All,
I am new to this and I have been reading a few blogs on here to find one relevant to my situation and this seems the most relevant as TRM and Cherrylon have been mentioned.

I recently received a letter from HMRC Local Compliance office in Bootle thanking me for my Tax return for year end 5 April 2011 but they would now like to check my return and quated Section 9A Taxes Management Act 1970 under Code of Practice 8.

They note that I took part in arrangements whereby I was involved in an offshore scheme with Cherrylon and received sums of money in the form or Loans or Expenses.

1: They now want to know what sums I received as loans or expenses
2: what amount of the loans have since been repaid and on what dates.

Does this mean I am being investigated or are they fishing for evidence? It seems they are not actually aware of what I received as they ask about loans "or" expenses. It seems they have got wind of Cherrylon and chasing the people who signed up.

Does anyone have any experiance of this and any advise on what I should do?
I will try to contact Cherrylon but I believe they changed names or that scheme was transferred. I need to do more digging but this seemed a good place to start.

Any advice or feedback would be greatly appreciated as it seems we are all in the same boat here and we could all help each other.

Yes you are being investigated.

HMRC Specialist Investigations – Code of Practice 8 and other non-fraud investigations

Looks like they'll be charging tax on loans that haven't been paid back.

You need some advice from a specialist accountant. Hopefully you haven't been in the scheme too long.

Did occur to me that paying back the loan might get you off the hook for a while and you then you could figure out how to get your money out in the most tax efficient way. Since HMRC won the Rangers case it doesn't look very good for EBT loan schemes.

Good luck.

[Michael J Perry FCA]

Talent and Cherrylon (Edge Consulting and others)

It has been pointed out to me that HMRC are issuing enquiry letters on Edge Consulting Limited.

I have existing clients who are already under investigation by HMRC relating to their employment with Edge Consulting Limited going back to the 2004/05 tax year. Most of these cases commenced around mid 2009 and are on-going.

I also have clients that were with Edge; then Talent; and then Cherrylon or Sanzar (or others)!

So, I think we need to be prepared for any possible combination and the obvious worry is for those taxpayers that belonged to one or more schemes and are under HMRC enquiry for one scheme and not any other ..... (yet).

[Leebok]

Did occur to me that paying back the loan might get you off the hook for a while and you then you could figure out how to get your money out in the most tax efficient way. Since HMRC won the Rangers case it doesn't look very good for EBT loan schemes.

Good luck.

HMRC lost their case with a majority vote, although they are appealing.

BBC News - Former Rangers Football Club wins Big Tax Case appeal

[Michael J Perry FCA]

Rangers FC - hmrc lost their case!

That is quite right, HMRC did lose the Rangers Case and that seems like good news for EBT's, but I believe it will have limited application in defence of Contractor Pay schemes.

You might find that HMRC will be relying on HMRC v PA Holdings Limited where they won at the Court of Appeal but the taxpayer is likely to appeal to the Supreme Court next year.

How these cases will reflect on non-EBT schemes like TALENT remains to be seen but the NIC aspect is worrying.

[LisaContractorUmbrella]

That is quite right, HMRC did lose the Rangers Case and that seems like good news for EBT's, but I believe it will have limited application in defence of Contractor Pay schemes.

You might find that HMRC will be relying on HMRC v PA Holdings Limited where they won at the Court of Appeal but the taxpayer is likely to appeal to the Supreme Court next year.

How these cases will reflect on non-EBT schemes like TALENT remains to be seen but the NIC aspect is worrying.

Believe HMR&C are now appealing the decision in the Rangers case

[craftmaker]

Hello,

I’m new here, and I wish it were on better terms.

I’ve recently received a letter from the taxman in regard to Talent Resource Management asking for me to pay x thousand pounds in tax for 2008/9 when I worked for TRM.

I’ve never received any inquires from HMRC before when letters were being sent out to people back in 2008-9 and so this letter is totally out of the blue.

The letter basically said it was under the “discovery provisions of Section 29 Taxes Management Act 1970” and they think I owe money on the TRM loan and they are classing the loads as “taxable income”. I have a month to appeal. They also added on 4 year’s interest to the bill.

They didn’t seem to have any details except the amount of the loan and earnings for that year. The thing is I paid the loan back on TRM’s advice under their currency system, so as far as I was aware it was paid off, and when I had it, I was also charged interest on it, so no benefit in kind, as were all others who used TRM.

Has anyone else had a letter like this? I stopped working for TRM back in 2008, and have not used any other companies like them, so I’ve either been employed or unemployed, and never had any letters.

Were there any recent cases where Talent Resource Management’s loans were re-classed in law as “taxable income” for this to happen? I’ve not heard of any. The letter does seem to have the same tone as a TV License letter, “we believe”, but no facts, just a bill and “pay it” demand. I will appeal, but I don’t know why they wait five years to then suddenly say they think an interest bearing loan that was repaid is now suddenly “taxable income”?

Any help is appreciated

[cojak]

Talent Resource Management

Hi Craftmaster.

Take a look at the 'HMRC Enquiries' sub-forum in Accounting/Legal.

Everyone who's had an HMRC letter is posting in there.

http://forums.contractoruk.com/hmrc-...bt-thread.html