HMRC nudge letter - "Your use of tax avoidance arrangements - an update "

[ns1]

Mr Hoey and NTRT may be screwed but I don't see how it changes anyone else's position.

You may be right but if the Hoey verdict stands then it cuts off the avenue everyone was pinning their hopes on. All folks are left with then is trying to argue that the loans weren't disguised wages which is pretty near hopeless.

[DealorNoDeal]

You may be right but if the Hoey verdict stands then it cuts off the avenue everyone was pinning their hopes on. All folks are left with then is trying to argue that the loans weren't disguised wages which is pretty near hopeless.

Yep.

[handyandy]

Was that this Isle of Man company?
https://opencorporates.com/companies/im/109509C

If so, I'm surprised you haven't had your collar felt more aggressively already. You say you're not caught by the loan charge, are your sure about that or is this just wishful thinking? Because I could have sworn AML was a loan scheme.

Yes that is the IOM companyI used but I think you may be confusing it with another scheme called AML that HMRC did aggressively pursue. To the best of my knowledge they have never actively pursued Actinium schemes in the last 17 years. HOwever, if you have any specific details where they have I’d be interested to know and if any other Actinium users have ever heard anything more form HMRC.

[ns1]

Ah, I see, and no I don't know anything about this particular investigation.

HMRC can mothball an investigation for as long as they like, decades even, and restart it whenever it suits them. They shouldn't be allowed to get away with this but sadly they can.

After this length of time, if you do eventually have to settle, I'd brace yourself for a whopping amount of late payment interest.

[DealorNoDeal]

HMRC can mothball an investigation for as long as they like, decades even, and restart it whenever it suits them. They shouldn't be allowed to get away with this but sadly they can.

Yep, once they've opened an enquiry, there's no time limit for concluding it.

[BolshieBastard]

Ah, I see, and no I don't know anything about this particular investigation.

HMRC can mothball an investigation for as long as they like, decades even, and restart it whenever it suits them. They shouldn't be allowed to get away with this but sadly they can.

After this length of time, if you do eventually have to settle, I'd brace yourself for a whopping amount of late payment interest.

Not strictly correct. You can take the matter to an FTT and ask the FTT to determine HMRC should issue a Closure Notice.

[BlueSquid]

I got one of these nudge letters a few weeks back, not knowing what it was to do with I contacted HMRC, they have come back and said it was related to "Actinium Dividend" during the period 2005 - 2007. In this period I contracted through Actinium, a management company that I became an employee of. Their structure saw income split with a proportion being paid as salary to the contractor and the remainder invested into a company in which the contractor was a share holder and received dividends. This was my first contract and it didn't seem sus to me at the time, not so sure now, despite all the assurances this was an HMRC approved solution

Any one else in this situation? If so how are you planning to proceed?

[Fred Bloggs]

I got one of these nudge letters a few weeks back, not knowing what it was to do with I contacted HMRC, they have come back and said it was related to "Actinium Dividend" during the period 2005 - 2007. In this period I contracted through Actinium, a management company that I became an employee of. Their structure saw income split with a proportion being paid as salary to the contractor and the remainder invested into a company in which the contractor was a share holder and received dividends. This was my first contract and it didn't seem sus to me at the time, not so sure now, despite all the assurances this was an HMRC approved solution

Any one else in this situation? If so how are you planning to proceed?

My bold text above. That was your first mistake. HMRC never "approve" tax avoidance schemes. The second mistake was believing the assurances and signing up. I think it likely you are going to need professional help with something potentially as complex as this sounds to me.

[BlueSquid]

Fred Bloggs , thanks for the response. Yep that was kinda where my head was. Is there any recommendations of such profession help, or should I just seek help from my current accountants. I'm assuming there must me people that specialise in this kind of thing?

[DealorNoDeal]

I got one of these nudge letters a few weeks back, not knowing what it was to do with I contacted HMRC, they have come back and said it was related to "Actinium Dividend" during the period 2005 - 2007. In this period I contracted through Actinium, a management company that I became an employee of. Their structure saw income split with a proportion being paid as salary to the contractor and the remainder invested into a company in which the contractor was a share holder and received dividends. This was my first contract and it didn't seem sus to me at the time, not so sure now, despite all the assurances this was an HMRC approved solution

Any one else in this situation? If so how are you planning to proceed?

That's the second mention of that scheme here in the past couple of weeks, and I bet it's not a random coincidence.

I would brace yourself for something unpleasant on the horizon.

Another thing that may not be a coincidence is the timing. It sounds like HMRC have sat on this scheme for well over a decade, so why are they resurrecting their investigation now? They only thing I can think of is the appeal court ruling in Hoey last month. Maybe ns1 above was right and this is a Hoey based attack.