Unsolicited 2011/12 letter + from HMRC

[webberg]

ok thanks - I have read a number of the threads and it is a bit hit and miss, i wonder if they are just starting with the most recent year and then once the whole process of appeals etc then they will also go for the other prior years.. The earlier years were all with the same scheme (same trust) and I know that all information within the trust was reported with the disclosure facilities to HMRC.

NO.

HMRC will work the cases based on expiring time limits for discovery.

The 2011/12 tax year moves out of the 4 year discovery window 5/4/16. There are a number of teams in HMRC working now on identifying and issuing DA's for that period.

Once they are through that, they may move on to 2012/13 immediately, or more likely get reassigned and come back to 12/13 just in time for Christmas?

[webberg]

Are you suggesting if I wish to settle I just accept this analysis and pay up?

I'm suggesting nothing.

I'm just giving you information on how HMRC see the situation.

Bear in mind that I have a commercial interest in people not settling and instead seeking resolution via other means so my view is biased. That said , any competent adviser would help you (for a fee) settle, if that is what you want.

The equation is roughly:

Can I cope with the stress of an enquiry and perhaps still have to pay the tax eventually but balanced by the chance of a lower tax payment?

There are a lot of subjective points here.

How much stress can you deal with?
Can you pay the tax now?
Can you live with potentially paying a penalty even if you think you have done nothing untoward?
Is there a price you'd pay for certainty?
Even if you settle is that the end? What about the loans which may still exist?
Do you believe an adviser can get a lower value eventually?
Do you think you can cope with negotiating but not litigating?

All sorts of things an adviser cannot judge.