Settlement Opportunity

[lastManStanding]

Trying to work out some things but don't currently understand the interest, so...
If I owed 10,000 in tax year 2010/11 would I only be liable for 3% on that amount in total or would that be 3% per year? i.e. would I owe

300 for 2010/11 300 for 2011/12 300 for 2012/13 300 for 2013/14 = £1,200 or would it just be £300 or is it even worse than that

It's my understanding that it is 3% simple interest for each year.

So £1,200 seems about right.

And every year longer it takes to get a ruling you can add another £300. If you pay the APN I believe the tax accumulation for the amount of the APN would stop.

[Aisling81]

2011 onwards

Hi,

Can someone tell me why they are treating that after April 2011 differently??

They say they will not be able to 'offer arrangements' on these years as easily as they have pre 2011.

From what I can see the settlement offer is of now advantage- so not really sure what they are implying?

I saw someone on here saying legislation changed post 2011 and hmrc treating it differently as they know they will win if they bring a case from that year to court.. So will go after that later and believe they will undoubtedly win.. Is this true?

[lastManStanding]

Hi,

Can someone tell me why they are treating that after April 2011 differently??

They say they will not be able to 'offer arrangements' on these years as easily as they have pre 2011.

From what I can see the settlement offer is of now advantage- so not really sure what they are implying?

I saw someone on here saying legislation changed post 2011 and hmrc treating it differently as they know they will win if they bring a case from that year to court.. So will go after that later and believe they will undoubtedly win.. Is this true?

They changed the law to stop avoidance using ebt benfits from trusts in April 2011, backdated to December 2010 when the law change was announced.

I'm sure any ebt scheme still operating after dec 2010 would have changed there arrangement so as to not fall foul of the new legislation. If they did not, then yes they would be an easy target for hmrc.

[Aisling81]

They changed the law to stop avoidance using ebt benfits from trusts in April 2011, backdated to December 2010 when the law change was announced.

I'm sure any ebt scheme still operating after dec 2010 would have changed there arrangement so as to not fall foul of the new legislation. If they did not, then yes they would be an easy target for hmrc.

Thanks for the info!

So this means they will just have to argue those years differently in court?? Or is it taking longer for them to figure out how to go after those years (as companies would have changed their arrangements their arrangements not to fall foul of the new legislation)?

Sorry for all the questions.

They never opened an enquiry on my 2012/2013 year... Could they still do this? I have one for 2010/2011 and 2011/2012

[ShouldLiveinSwitz]

I to have received a letter from HMRC yesterday morning and would like to know the best course of action.

I used a scheme promoted by Cascade and overseen by Kingston Smith tax advisors from 22-10-09 until 01-11-10.

The letter seems to be quite general and doesn't include an amount I should be paying back, only that I should contact them to find out the amount I need to pay (shouldn't they already have this information as it is clearly stated on my tax form that was sent to them?)

The only thing that I am required to do is to contact them by the 09-01-15, nothing other than that. No amount to be paid.

At this present moment, any tax rebate would effectively bankrupt me, as I have been out of work for over 18 months and have no real cash to pay this.

As far as I I knew this tax scheme was legal in 2009 when I used it, so to have this changed and then backdated seems somewhat out of order? They only state that:

HMRC strongly believes that these arrangements do not work and the amounts described as loans are taxable.

Only a belief? no law change? illegal operations?

I will contact Cascade in the morning and see what they say.

I am interested to know what other people have done in the same situation previously and what other people would recommend.

Thanks

[Michael J Perry FCA]

Maybe i'm amazed!

The details of the Contractor Settlement Opportunity were available well in advance but the effective start and closing dates were not certain until last week.

The devil is in the detail . . . example . . . two contractors in the same scheme, for the same tax years and the same amount of loans. One can settle for £50,000 but the other would need to pay £180,000 . . . How is that equitable? Answer: It is not . . . but apparently that is how it works.

[Nissan07]

If I have been PAYE since 2010 - used similar schemes prior to that, does that make me exempt technically if the law was only backdated to 2010 and therefore those prior years are perfectly within the law.

My letter states up to 2011

[AnotherContractor]

If I have been PAYE since 2010 - used similar schemes prior to that, does that make me exempt technically if the law was only backdated to 2010 and therefore those prior years are perfectly within the law.

My letter states up to 2011

Correct me if I'm wrong but i think it means 6 years to 2010/11 i.e. backdated

[convict]

No it means years for which you have either an open enquiry or an appeal against a discovery assessment.

[Boobetty]

Inheritance Tax

Afternoon, first ever post so apologies for it being a question.

I do not understand the mention of IHT in the offer letter from HMRC. I appreciate that IHT has a £325k threshold but for argument's sake lets say we are above this threshold: do they plan on calculating a charge to IHT AND to Income Tax on the same funds?