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BIG GROUP

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    Originally posted by maliksaeed
    I talk to accountant at <mod snip> this spammer was the accountant who couldn't add up < / mod snip> about my situation. I have APN for £46k for 2012-13 and I know I may owe more but he has another way out. Though not tax efficient but would limit the heavy penalties to 5%. HMRC appeal is successful and he has filled all my tax returns correctly. Just waiting on payment arrangement. And Guess what Tax bill come to £72k only including interest and tax penalties. Call him and see if he can help you anything with.
    So you settled a £46k bill for £72k?

    What was his fee?

    Comment


      Settlement

      Originally posted by EBTContractor View Post
      I recently asked HMRC to settle a handful of years worth of loans. They kindly sent me a calculation overview of the delta between a couple of APNs + accrued interest, as well as post 2011 years. I was ready to pay.

      3 weeks ago they sent me another letter saying "unfortunately HMRC's position regarding settlement of the tax affairs of scheme users is now under review and therefor unable to confirm a final calculation of the additional sums that might be payable and to arrange a settlement with you."

      What's this all about?

      Has a) Rangers changed the position or is b) HMRC pushing everything out to 2019 when loans will be taxed as income, so whether you pay now or in 2019 no longer matters to them?


      You are not alone. My settlement is declined by HMRC due to reason that they don't have authority to settle now! They mentioned that HMRC will know within next couple of weeks. Obviously this is HMRC so might take them years to act so figures crossed.

      Comment


        Originally posted by Safe View Post
        You are not alone. My settlement is declined by HMRC due to reason that they don't have authority to settle now! They mentioned that HMRC will know within next couple of weeks. Obviously this is HMRC so might take them years to act so figures crossed.
        I am now convinced that is legal. However challenging HMRC takes years and costs millions.

        Comment


          Originally posted by Safe View Post
          You are not alone. My settlement is declined by HMRC due to reason that they don't have authority to settle now! They mentioned that HMRC will know within next couple of weeks. Obviously this is HMRC so might take them years to act so figures crossed.
          HMRC got the government to agree to change one of the changes made by Finance Act 2017 that they had not properly thought through and which could produce a very favourable settlement. They did this from 21 July. I have no inside information on this but may be they stalled agreeing settlements for a short while until this was sorted. But as I have no inside information on this I may be completely wrong (about the previous sentence, not the first two).

          Comment


            Originally posted by Iliketax View Post
            HMRC got the government to agree to change one of the changes made by Finance Act 2017 that they had not properly thought through and which could produce a very favourable settlement. They did this from 21 July. I have no inside information on this but may be they stalled agreeing settlements for a short while until this was sorted. But as I have no inside information on this I may be completely wrong (about the previous sentence, not the first two).
            Sorry, do you mean would have produced a favourable settlement that they convinced the government to withdraw, or that they have convinced the government to amend so it produces such a favourable settlement ?
            STRENGTH - "A river cuts through rock not because of its power, but its persistence"

            Comment


              Pre and post 2011

              So what I know is that pre-2011 schemes are still OK with settlement which is income tax on the loan you received. For schemes post 2011 their so called 'settlement' terms is on the gross amount so you are being taxed on the money the promoter made and the trustee fee. So from my end that is definitely not settlement so not sure how it could get much worse. For many people they simply wouldn't know what these fees are and wouldn't have pay slips etc. so sometimes they just make up a number and asked to pay tax on money you didn't receive and of course money that should (in the promoters case) have been taxed anyway.
              These are also TWO separate departments whom don't really talk to one another by the sounds of it.
              My guess it is the schemes post 2011 and if it is more unfavourable then the only thing that could make that worse is if they decide to tax you for the money the intermediary made on you. (Of course this is me taking the mickey..)
              For many people with the LC coming in it will be the courts to decide if HMRC are able to tax you for money you never received. N

              Comment


                Originally posted by difficulttimes View Post
                For many people with the LC coming in it will be the courts to decide if HMRC are able to tax you for money you never received. N
                So HMRC will decide then. Challenging HMRC costs millions and takes years.

                Comment


                  Originally posted by regron View Post
                  Sorry, do you mean would have produced a favourable settlement that they convinced the government to withdraw, or that they have convinced the government to amend so it produces such a favourable settlement ?
                  Short answer: It is complicated. But I think they accidently changed something in FA 2017 that meant you could get better tax treatment if you did certain things. They then undid that accident to get rid of this "unintended consequence".

                  A bit longer answer: S554XA allowed a trust to pay income tax and NIC to HMRC without that being a relevant step. So if you had a friendly trustee you could repay part of the loan and the trustee would waive the rest and use the money from you to pay the tax and NIC. The net result was that the loan disappeared and you paid less cash than if you had just waived it (or waited for April 2019). The trustee could also do the same for IHT and corporation tax. But (assuming Parliament approves the next Finance Act with this in) from 21 July if the trustee paid income tax / NIC to HMRC it would trigger a disguised remuneration tax charge and so the benefit of the original change disappears in a puff of smoke.

                  Comment


                    Clarity

                    A question for those that are in the process of settling, did you get charged interest and penalties even though you came forward to settle?

                    Does anyone have a link to s site to work out interest?

                    Comment


                      Originally posted by Bobo View Post
                      A question for those that are in the process of settling, did you get charged interest and penalties even though you came forward to settle?

                      Does anyone have a link to s site to work out interest?
                      Not sure what this has to do with Big Group?

                      Anyway, interest is charged in settlement calculations.

                      I've not seen penalties charged.

                      HMRC's website is a good place to start for a calculator.
                      Best Forum Adviser & Forum Personality of the Year 2018.

                      (No, me neither).

                      Comment

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