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HMRC Letter - Compliance Check Re Disguised Remuneration Loans

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    #11
    Double Limited Scheme perhaps?
    STRENGTH - "A river cuts through rock not because of its power, but its persistence"

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      #12
      Originally posted by regron View Post
      Double Limited Scheme perhaps?
      Or something like that - I suspect HMRC want the transaction details of companies related to that accountant as a lot of them were probably just collecting points / fronts before the money was forwarded into the scheme.
      merely at clientco for the entertainment

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        #13
        If this was just a simple Ltd company and dividends set up, how can HMRC issue an enquiry other than a big fishing exercise to see if anyone bites. Makes no sense at all. There must be more to this, there cannot be smoke without fire.
        Vote Corbyn ! Save this country !

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          #14
          Originally posted by fullyautomatix View Post
          If this was just a simple Ltd company and dividends set up, how can HMRC issue an enquiry other than a big fishing exercise to see if anyone bites. Makes no sense at all. There must be more to this, there cannot be smoke without fire.
          HMRC ask for a list of clients using that accountancy firm (probably by looking at agents approved to handle reports) and write to all of them as they won't know from the details they have whether they are dodgy or not.
          merely at clientco for the entertainment

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            #15
            When responding to HMRC, don't get shirty with them.

            Don't antagonise them.

            That s9a for DR loans could easily turn into an s9a for IR35.

            Hopefully, once they're satisfied that you never received any loans, they will close the s9a.
            Last edited by DealorNoDeal; 30 October 2020, 11:58.
            Scoots still says that Apr 2020 didn't mark the start of a new stock bull market.

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              #16
              Go and get some advice because a lot of comments above are guesses or misleading or both.

              HMRC will open an enquiry into a YEAR (never limited to just one aspect within that year) based either on information held or because your record has been pulled up in an algorithm HMRC has devised to search their database for particular "risks".

              Sometimes, this is based on HMRC's evidence that certain agents may be connected with particular risks (i.e. are facilitating or promoting "schemes"), sometimes more specific information based on personal circumstances.

              These days a "random" enquiry is not very likely. HMRC is way too busy, especially now, to tie up staff in enquiries that will not produce a return.

              I would therefore say that HMRC has spotted smoke and is looking for fire.

              I suggest that you ask HMRC what the enquiry is about and what prompted it.

              If it is indeed the fact that you have been targeted because of your agent, you need to call the agent and ask them why.

              Depending on the answers you need to consider whether to stay with that agent or not.

              For the avoidance of doubt. I am not suggesting that this agent - whomever it is - has been facilitating or promoting tax avoidance in any form. The enquiry may have been sparked by HMRC asking all agents known to have clients in a particular industry or sector.
              Best Forum Adviser & Forum Personality of the Year 2018.

              (No, me neither).

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                #17
                Loan Charge

                Thanks for the responses & advice :

                What are we Checking and Why
                We are checking your return to see whether it should have included information about disguised remuneration loans. Our records indicate that it should have.

                If we find we need to check anything else, we’ll write to let you know.

                All the information requested is about loans, response email address is ca.loancharge@hmrc.gov.uk

                I have contacted my tax investigation insurance provider, according to them there have been number of these letters which have been sent to individuals who have not been members of any arrangements. I will write back to HMRC once I have received advice on wording.

                Comment


                  #18
                  Originally posted by eazy View Post
                  Thanks for the responses & advice :

                  What are we Checking and Why
                  We are checking your return to see whether it should have included information about disguised remuneration loans. Our records indicate that it should have.

                  If we find we need to check anything else, we’ll write to let you know.

                  All the information requested is about loans, response email address is ca.loancharge@hmrc.gov.uk

                  I have contacted my tax investigation insurance provider, according to them there have been number of these letters which have been sent to individuals who have not been members of any arrangements. I will write back to HMRC once I have received advice on wording.
                  They seem to be templated letters, I received 2, both in the same envelope and with the same date on. However first one was in regards to the original return I submitted back in Jan and then the other letter corresponds to the ‘amended’ return I filed later in the year which included some updates before the Sep deadline.
                  Interesting as the 2nd letter seems to acknowledge the updates I have disclosed and does ‘not require any further information until told.....’. But the first letter is requesting all the usual information around any loans ‘you may have had’ etc. Quite confusing actually if I really need to provide all of the answers again. It actually does also state in first letter that you should only provide information if the loan charge/ outstanding loan exists. Probably safe to still respond and ack receipt of both letters. The info provided in 2nd return to be reiterated and expect nothing further for now unless told otherwise....?

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