If you cant pay an APN, would the judge rule in favour of bankruptcy

[webberg]

[QUOTE=
The two things that still baffle me;

First, if I buy a financial product and am given bad advice, I have recourse to compensation for that bad advice. So as HMRC gave my scheme the bad advice initially (i.e. advising that it was legal at the time - or at least that what my scheme told me), can I get compensation from HMRC to pay my retrospective tax bill?

And secondly, the VAT my scheme charged for services each year exceeded my newly arrived tax bill for each year in the scheme. Do HMRC have to refund the VAT if the earnings are now considered income?[/QUOTE]

First - HMRC did not initially or subsequently give advice. HMRC did NOT tell anybody the scheme was legal or effective. Your scheme provider lied to you if they let you believe that. You will NEVER prove HMRC gave such advice because they didn't.

If you can prove that and the provider is still around, then you have a legal action.

If the provider was FSA regulated (unlikely) you have access to a statutory compensation claim.

Secondly - very good question.

I assume you mean that your nominal employer (IoM company?) raised an invoice on a UK company and charged them VAT?

Let's assume that the VAT was actually paid to the UK Exchequer. The payer of the VAT would have claimed a credit against VAT it owed on sales. Dependent upon the scheme the payer used it may have been partially exempt (especially if a financial services outfit) and therefore the VAT not wholly recoverable.

In that case, if it can be shown that the Government retained some of the VAT and now wants to charge income tax as well, there is a possible (stress possible, not certain) claim that they have taxed the income twice. This is called unjust enrichment and a Court will normally try to ensure it does not happen.

Quite how you go about proving that is interesting. getting the VAT returns of the payer is not possible but they might be persuaded or obligated to supply the information. Sounds expensive in legal terms.

Interesting line to pursue for a while though.

[TykeMerc]

The two things that still baffle me;

First, if I buy a financial product and am given bad advice, I have recourse to compensation for that bad advice. So as HMRC gave my scheme the bad advice initially (i.e. advising that it was legal at the time - or at least that what my scheme told me), can I get compensation from HMRC to pay my retrospective tax bill?

And secondly, the VAT my scheme charged for services each year exceeded my newly arrived tax bill for each year in the scheme. Do HMRC have to refund the VAT if the earnings are now considered income?

I think if you check carefully while the scheme providers may have implied or just stated (which would be an actual lie) that HMRC approved the scheme. To the best of my knowledge HMRC have never "approved" any scheme, any promoter saying they have approval is either outright lying or impying so artfully that their mugs customers read it as such.
There's more chance of you winning the Derby without a horse and then being named Pope, Chief Rabbi and Chief Ayatollah on the same day than getting a penny from HMRC in "compensation". It was your choice to arrange your tax matters the way you did.

As to the VAT, well were you registered for VAT at the time? Did you enter the scheme providers invoice on your VAT returns at the time? I'm sure you can work out exactly where that one is going too, your choice to pay a fee to the provider of the scheme.

[MercladUK]

I think if you check carefully while the scheme providers may have implied or just stared (which would be an actual lie) that HMRC approved the scheme. To the best of my knowledge HMRC ave never "approved" any scheme, any promoter saying they have approval is either outright lying or impying so artfully that their mugs customers read it as such.
There's more chance of you winning the Derby without a horse and then being named Pope, Chief Rabbi and Chief Ayatollah on the same day than getting a penny from HMRC in "compensation". It was your choice to arrange your tax matters the way you did.

As to the VAT, well were you registered for VAT at the time? Did you enter the scheme providers invoice on your VAT returns at the time? I'm sure you can work out exactly where that one is going too, your choice to pay a fee to the provider of the scheme.

Good evening, the curtain twitcher returns with yet more "it was your fault" words of wisdom. Rearrange the words off and bore zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzbd ump

[StrengthInNumbers]

Quite how you go about proving that is interesting. getting the VAT returns of the payer is not possible but they might be persuaded or obligated to supply the information. Sounds expensive in legal terms.

Interesting line to pursue for a while though.

so if provider is around and Vat was paid between employer in IoM and payroll company in UK it is big plus if all documentation is in order?