HMRC Scheme Enquiries: Network One

[GemmaC]

Has your enquiry been resolved? did you need to pay anything?

It's ongoing. As far as I know, everyone still using the scheme throughout the 2013-14 tax period will have received the enquiry (inquiry?) towards the end of last year.

Enquiry will likely last for a couple of years.

Having read the 2011-12 letter once more, and has been stated, this is not a tax demand. It's an assessment based purely on the figures they have at hand. Total loans/advances, total income, total tax paid.

Any response will include some text that indicates that the loans were paid back (and how, in follow-up responses). It has to. If you have taken loans and not paid them back then, well, it's not income but it's dodgy.


My gut feeling is that they opened the Network One inquiry late last year... and maybe have decided there was sufficient evidence to make assessments on the past 4 years.

As has been stated, the scheme did change during this period. The hope is that it changed in time and in line with current legislation.

TBH I'm not worried. If you live by the sword you die by the sword. We all entered into these arrangements in the hope that a) it would simplify our tax affairs (because lets be honest, running a ltd company with expenses, overheads, salaries and dividends it's too complicated for my brain) and b) we might end up with a little bit more at the end of the day. My house is on the line here - I kinda hope it works out OK.

[Denver05]

Me too.

I received a letter on Friday requesting 20K for the 2011 - 2012 period with Network One. (Just what I wanted at the end of a hard week).

Will be seeking advice first thing on Monday morning.

[nervousguy]

Im in the exact same position, letter today demanding £9K, I was with Network One also

Sorry to hear that mate - have you had any reply from NetOne?

[nervousguy]

It is clear that Network One is HMRC's current project.

I suspect that iterations of that scheme will follow (Quantum, Endeavour)

Most of you have a discovery assessment for 2011/12.

THIS IS NOT A DEMAND FOR PAYMENT WITHIN 30 DAYS.

It's presented as being so but you are not obliged to pay. Instead you need to appeal and ask for a postponement of the tax.

That needs to be done within 30 days of issue.

I have seen the Network One templated response. I'm not convinced that it does the "appeal/postpone" job.

If, after reading it, you are also not convinced, then GET ADVICE.

Any competent accountant or tax adviser can prepare an appeal/postponement letter.

HMRC will (eventually) follow up with questions. These will be a mix of why did you use the scheme? what did you do? How do you understand it works? how much did you draw under the scheme? etc.

Some of this is a legitimate request, some is HMRC handing out enough rope. At this stage you need somebody who works FOR YOU and who is not conflicted and trying to protect a business. It might also help that they are in the UK and not several time zones away?

There are names of advisers in these threads and opinions from users. 30 minutes reading will help.

I declare a commercial interest here but you do need to take action and ignoring the discovery assessment is not to be recommended.

Thanks for the advice. Do you know how far back they can go?

[thelittleguy]

Sorry to hear that mate - have you had any reply from NetOne?

They asked me to send them invoices etc that I had and they are going to form a reply. Hoping fairly quickly.

[anotherimpactedguy]

Even I got a letter from HMRC to pay £11k. I rang Network one on Friday and they asked me to send few details. Not heard anything back yet.

So wondering whether to wait for Network one to reply or seek any other advice.

[Real Gone Kid]

Network One / HMRC - Unholy Mess

Hello,

I have been with Network One for 8 years.

I have always worked under the knowledge that they are compliant to ALL government regulations.

I have received a letter of assessment that with a sum of 7.5k (inc interest) for tax year 2011 / 2012. I do not have that knd of money, I rent my house, I have debts, and I will probably end up BR if I receive further assessments go on to look at further years and HMRC wins litigation.

I will be appealing the assessment as I have not (as yet) had any response from Network One, and until I do, I cannot respond in any other way to HMRC.

If anyone on here needs anyone to talk, through this forum, I will be here as someone who will help them through what maybe some tough times ahead. I am not an expert on any of this, but what I will say is this, I will fight my corner every step of the way as I entered into this arrangement probably a bit blind, definitely a bit stupid but NEVER with the intention of avoiding tax through breaking the laws of the land.

If anyone wants to share the progress of this thing going forward, then I am available and willing to share any information I get. We perhaps should set up a private Google Hangout if others feel the same.

Thanks for reading.

[cojak]

Hello,

I have been with Network One for 8 years.

I have always worked under the knowledge that they are compliant to ALL government regulations.

I have received a letter of assessment that with a sum of 7.5k (inc interest) for tax year 2011 / 2012. I do not have that knd of money, I rent my house, I have debts, and I will probably end up BR if I receive further assessments go on to look at further years and HMRC wins litigation.

I will be appealing the assessment as I have not (as yet) had any response from Network One, and until I do, I cannot respond in any other way to HMRC.

If anyone on here needs anyone to talk, through this forum, I will be here as someone who will help them through what maybe some tough times ahead. I am not an expert on any of this, but what I will say is this, I will fight my corner every step of the way as I entered into this arrangement probably a bit blind, definitely a bit stupid but NEVER with the intention of avoiding tax through breaking the laws of the land.

If anyone wants to share the progress of this thing going forward, then I am available and willing to share any information I get. We perhaps should set up a private Google Hangout if others feel the same.

Thanks for reading.

And of course proof is a two-way thing.

[nervousguy]

Hello,

I have been with Network One for 8 years.

I have always worked under the knowledge that they are compliant to ALL government regulations.

I have received a letter of assessment that with a sum of 7.5k (inc interest) for tax year 2011 / 2012. I do not have that knd of money, I rent my house, I have debts, and I will probably end up BR if I receive further assessments go on to look at further years and HMRC wins litigation.

I will be appealing the assessment as I have not (as yet) had any response from Network One, and until I do, I cannot respond in any other way to HMRC.

If anyone on here needs anyone to talk, through this forum, I will be here as someone who will help them through what maybe some tough times ahead. I am not an expert on any of this, but what I will say is this, I will fight my corner every step of the way as I entered into this arrangement probably a bit blind, definitely a bit stupid but NEVER with the intention of avoiding tax through breaking the laws of the land.

If anyone wants to share the progress of this thing going forward, then I am available and willing to share any information I get. We perhaps should set up a private Google Hangout if others feel the same.

Thanks for reading.

Hello, I am also in the same situation. I would recommend joining Big Group and speaking on there.

[OMG]

pls join the Big Group and we can speak there - there is a dedicated tread for net1.

WTT Consulting | Tax Enquiry Specialists | London