Things about to get very serious and much more real? / Felicitas Letters

[MrsPatricia]

I haven’t heard anything further from W28 or the debt collection agency.

I have however been contacted from HMRC saying I owe them over £50k for 2018/2019 tax year when I was permanently employed and had nothing to do with the loan schemes… been on hold for an hour trying to talk to someone to dispute it as they’ve given me 20 days to pay…

[GregRickshaw]

I haven’t heard anything further from W28 or the debt collection agency.

I have however been contacted from HMRC saying I owe them over £50k for 2018/2019 tax year when I was permanently employed and had nothing to do with the loan schemes… been on hold for an hour trying to talk to someone to dispute it as they’ve given me 20 days to pay…

You may not have been involved during those years, however the loan charge and the DR can reach back further to when you were involved in some kind of DR, and I am assuming here, if you have had a loan recall from the loan providers, this suggests you did have a loan at some point and should have declared it on your SAR for 2019.

HMRC had until today April 5th 2023 to issue enquires on schemes declared or not on the 2019 SAR, hence the flurry of recent activity from HMRC.

I imagine also the deadline is for HMRC to issue rather than send the demands, so it could be months until the demands stop coming.

Get professional help as soon as you can.

[MrsPatricia]

I have worked out the issue. I received 3 payments from Birling Management when they swapped me from Infinity totalling around £2k. So tax owed is about £400.
I had already paid the tax from infinity and had missed these 3 payments.
When I spoke with HMRC they said the amount was a guesstimate based on the average people were being paid through Birling Management. How that is in any way acceptable I don’t know.

I have sent my appeal with all documents and offer of paying the remaining tax and interest.

[Rohit]

Hi,

Yesterday i received huge demand of 65k from HMRC ([email protected]). I was using the loan scheme in the year 2012 to 2015(Garraway, AML and IQ).


In 2014 September i have received a check of SA tax return from Counter-Avoidance team for the tax year 12-13 and 13-14. I emailed them back and gave all the loan figures which i have received and they re-calculated my tax and additionally i had to pay 18k. I have received the closure statement in which they clearly mentioned the below.

My Decision

Is that additional tax is due on income initially described as loan.



Now they are demanding 65k by 3rd of May 2023.


Any expert suggestion how can i proceed ?

[DealorNoDeal]

Any expert suggestion how can i proceed ?

If you've already settled all of the years, then it sounds like they might have assessed you for the Loan Charge in error. The figure will be bigger because the LC taxes all the loans in a single year (2018-19) on top of whatever else you earned in that year.

Go back to them and point out you already settled on X date.

[DealorNoDeal]

When I spoke with HMRC they said the amount was a guesstimate based on the average people were being paid through Birling Management. How that is in any way acceptable I don’t know.

In the rush to meet the deadline (5/4/23) for assessing the 2018/19 loan charge, HMRC will be taking all sorts of short cuts and probably making a lot of errors.

The goal is probably to get assessments out of the door, regardless of whether they're accurate or not.

[Paralytic]

When I spoke with HMRC they said the amount was a guesstimate based on the average people were being paid through Birling Management. How that is in any way acceptable I don’t know.

This is perhaps something worth highlighting to the many people across many schemes who have stated that they cannot work out how HMRC have calculated their figures. If they're doing this for one scheme, its likely they'll also be doing it for others. If true, they're effectively making it up and hoping people will just pay. How they can be allowed to do this is unfathomable.

[Chevalier]

Hi,

Yesterday i received huge demand of 65k from HMRC ([email protected]). I was using the loan scheme in the year 2012 to 2015



Now they are demanding 65k by 3rd of May 2023.


Any expert suggestion how can i proceed ?

From what you’ve said above you received loans in the 14/15 and possibly the 15/16 tax years which it doesn’t look like you’ve settled.

The loan charge would apply for these amounts, if not otherwise settled and would these loans would be added to your 18/19 taxable income.

If you still don’t recognise the numbers then I would appeal immediately and contact HMRC to discuss how they’ve reached their numbers.

[Snooky]

How that is in any way acceptable I don’t know.

I completely agree. How many others, who may not know they can come here and ask questions, will end up paying far more than they owe just to make it go away?

In your position, I'd get a revised assessment from them, pay the tax and then raise a formal complaint about the way they're assessing tax owed, especially when they dump it on unsuspecting taxpayers with a deadline to pay of just a few weeks. I'd also be getting my MP involved because HMRC are just taking the ****.

[DealorNoDeal]

HMRC have done the same with CK/Boox clients. Many of the assessments were just finger in the air but it appears all they cared about was getting something out before the 5th April enquiry window closed.