Settlement Opportunity

[slatt]

They're all generic at the moment

The April 2011 reference is because that's when they changed the law, so any scheme used after that date needs to be dealt with differently

[jbryce]

I'm intrigued as the letter i received simply states Arrangements used up to 5 April 2011

I recall one letter of enquiry to the scheme that the umbrella dealt with which may constitute and open enquiry but nothing else. This according to my accountant could allow HMRC to go back more than the 6 years if they have an open enquiry lodged.

So is everybody else receiving specific letters for specific years or are they also generic

it's generic - I spoke to HMRC last week - and will apply to any outstanding enquiries. New ones would need to be opened under the existing rules.

[silvys]

National Insurance question

I too received a settlement opportunity letter a few days ago..

I used in the Nola/Edge EBT scheme for a short period back in 2006. Luckily I was only part of the scheme for a short period of time and I can get hold of the funds required to meet any settlement.

However, I'm unclear how much money an early settlement could potentially save me (my gut feel is HMRC will probably get hold of the money eventually). Reading the letter the 3 things early settlement could save me are:
(i) Interest on Income Tax owed,
(ii) National Insurance which they may aim to pursue if I don't settle early, and
(iii) Inheritance Tax.

I'm not even going to give the time of day to the (iii) inheritance tax comment, and with accelerated payment notices being sent out the funds will probably be sitting with the HMRC shortly anyway, so the (i) interest argument goes away as I will no longer being be accruing additional interest.

It is the (ii) national Insurance argument that most interests me. Does anyone know if that is something that HMRC are likely to attempt to reclaim? (I'm no expert on the Boyle case - did that include reclaiming national insurance?) If so, I'd be tempted to settle up early - saving myself the national insurance means I'm not getting out of this too badly at all. After all there any many umbrella solutions out there where contractors are paying both employers and employees NI.

However, if HMRC are unlikely to come after the NI then I've got nothing to lose from holding on and waiting to see what happens.

I'm not expert on any of this, so please feel free to shout at me if I'm talking rubbish

[Poppy]

Not closing the loop on arrangers

Close down the arrangers (still advertising HMRC compliant schemes) and then will see. Need to stop harassing and bullying the earners.

And pull, the government trust - users.

One rule for all and not be deliberately selective - double standards.

Where possible, make a claim for the fees (c.10%) paid over all these years, get technical advisor appointed asap.

We want the same sweetheart deals as Bernie E, Goldmans, Vodafone - the list is endless, you can't create a precedent and then impose these so-called 'legal' rules.

Not my fault, the government is constantly in deficit.

Just about had a enough.

[jbryce]

Getting something straight

The sttlement opportunity relates to those years for which HMRC have open enquiries. It gives you an opportunity to get it over and done with for those years. There are multiple reasons why you would want to settle and a myriad of reasons why you wouldn't. Read the threads.

You are not obliged to settle for years which are not under some form of COP 8 enquiry.

So, should you feel the urge to lessen the administrative burden on HMRC and avoid the APNs which will cause them a massive headace, then write to them and ask them what years they are after.

..oh and start saving...

[Poppy]

Key is have strong defense team

Get ready to appoint strong defense teams, to fight legality and not be threatened by illegality !.

[Not Losing Any Sleep]

Get ready to appoint strong defense teams, to fight legality and not be threatened by illegality !.

Just because HMRC has focussed on a couple of years and you settle these, don't think you are out of the woods for prior years.
Any settlement will open the door for HMRC to go back and review past years.

[dirk]

This government really has no clue, alienate a large selection of voters in order to garner votes from the same group of voters when they turn round and say "look at how much we reduced the deficit by!"...."Just don't worry about those bankrupted guys over there, we have a strong feeling they are guilty of something"

[DonkeyRhubarb]

Just because HMRC has focussed on a couple of years and you settle these, don't think you are out of the woods for prior years.
Any settlement will open the door for HMRC to go back and review past years.

It depends what sort of response they've had.

If thousands approach them offering to settle, and they are inundated, then they may not dig any deeper.

However, if it's only a few hundred, those individuals could find themselves under the microscope.

[jbryce]

Rangers appeal...

It depends what sort of response they've had.

If thousands approach them offering to settle, and they are inundated, then they may not dig any deeper.

However, if it's only a few hundred, those individuals could find themselves under the microscope.

Talking the Rangers case through with my accountant yesterday. his view is that, for EBTs, FN will be an issue if they try and use Boyle. HMRC wanted to use Rangers.

As for APNs, they may choose to issue them, but then they *have* to go to court at some point. The Rangers case *may* suggest that they will lose a lot, clog the courts up and destroy their 80% success rate.

The settlement opportunity is an attempt by HMRC to wriggle off the hook they have put thmselves on.