Settlement Opportunity

[StrengthInNumbers]

If not taken SO, hmrc will issue apn then try and win a case in court and issue fn. my view personally.

[Leebok]

Tax avoidance clampdown threatens rule of law – Society

Are APN's legal?

Tax avoidance clampdown threatens rule of law

Without having right to appeal and access to the court seems to be the issue.

Quote from artice.
Last month, the committee, responding to a government consultation on strengthening sanctions for tax avoidance, said proposals for tougher penalties against serial users of disallowed tax avoidance schemes were premature and could threaten fundamental rights such as that of appeal.

The committee suggested this week that a new tax charter would set out principles relating to the rule of law and should include taxpayers’ right to access the courts.

[AnotherContractor]

Settlement Statment

I asked the HMRC for a settlement statement to which they duly replied after about 3 weeks. But the loan amounts are totally inaccurate, they've been calculated as either 4*salary or 6*salary.

I have the loan documentation to challenge the loan amounts (and income tax owing) they've calculated, but is this something I could do or would I need to hire the services of an accountant?

[webberg]

I asked the HMRC for a settlement statement to which they duly replied after about 3 weeks. But the loan amounts are totally inaccurate, they've been calculated as either 4*salary or 6*salary.

I have the loan documentation to challenge the loan amounts (and income tax owing) they've calculated, but is this something I could do or would I need to hire the services of an accountant?

If you are confident in your numbers, you can do this yourself. There is no compulsion or legal reason to have an accountant.

HMRC is severely lacking information. As such they have a model that says Scheme A was 4 x salary and Scheme B was 6 x salary and they apply this across the board.

If they tried this approach for an assessment, it would be defeated very easily because you could show that due care had not been exercised. Unfortunately a settlement is different.

I think I would be tempted to ask them first how they calculated the figures, on what evidence?

I would not immediately volunteer "better" numbers, but make HMRC do some hard yards.

[AnotherContractor]

In the HMRC statement I received it had "Settlement" for one year and "Assessment" for the other, what's the difference between these?
Can I appeal both? Thanks

[webberg]

In the HMRC statement I received it had "Settlement" for one year and "Assessment" for the other, what's the difference between these?
Can I appeal both? Thanks

A settlement is an agreement made between you and HMRC that sits outside the formal tax return/assessment process.

An assessment is a calculation made on information supplied or held and leads to a demand for payments.

A settlement cannot be appealed.

An assessment can be appealed.

[Safe]

Settlement VS APN

I've received my settlement figure from HMRC and signed and agreed to settle for one of the years I used the scheme. However I've received APN letter this weekend and the figure is higher than settlement value.
Which one is correct?
Do I need to pay the difference?

Thanks for the any advice.

[webberg]

I've received my settlement figure from HMRC and signed and agreed to settle for one of the years I used the scheme. However I've received APN letter this weekend and the figure is higher than settlement value.
Which one is correct?
Do I need to pay the difference?

Thanks for the any advice.

The settlement is correct.

Write back to the APN issuing office and tell them you've settled.

No you do not have to pay the difference.

[holymoly23m]

Settlement

Looks like its been extended.

https://www.gov.uk/government/public...re-information

Does anyone know if completing the form in any way prejudices appeals? https://www.gov.uk/government/upload...387786/do3.pdf

It does seem like it is providing a lot of information to HMRC that they likely dont have. Assuming they are estimating loan amounts now.

[chr16v]

If you are confident in your numbers, you can do this yourself. There is no compulsion or legal reason to have an accountant.

HMRC is severely lacking information. As such they have a model that says Scheme A was 4 x salary and Scheme B was 6 x salary and they apply this across the board.

If they tried this approach for an assessment, it would be defeated very easily because you could show that due care had not been exercised. Unfortunately a settlement is different.

I think I would be tempted to ask them first how they calculated the figures, on what evidence?

I would not immediately volunteer "better" numbers, but make HMRC do some hard yards.

When i had a phone conversation with HMRC about generating my settlement calculation they said they were using the loan amount from my P11D as the basis for their settlement calculation.
Now i dont know if this would be the correct figure to use or not. Surely most scheme users would have their loan amount referenced on their P11D wouldnt they? And if they do then surely its easy for HMRC? Or do i not have the right understanding on this...
I went through all my old loan trustee emails and crossed checked and totalled the amount and it pretty much matches the P11D figure.
So should HMRC be using this figure and how can i tell if their calculation is correct or not?