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

[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.

[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.

[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]

All HMRC have to do is (1) deem the loans as disguised employment income, which should have been subject to PAYE, then cite the Court of Appeal decision in Hoey to (2) disapply the PAYE regs and transfer the liability to the employees.

People may not be able to appeal against (2) but surely they can still appeal against (1)?

It's different with Hoey himself, and NTRT, because in their appeals they asserted that it was employment income. The only remaining question was who was liable for the PAYE and, unfortunately, the Court of Appeal ruled that HMRC was entitled to use (2) to transfer it.

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

[ns1]

Loan charge was payments received post November 2010 (from memory I've not double checked).

I forgot about that.

Pre-2010 must be vulnerable to a Hoey attack now. All HMRC have to do is deem the loans as disguised employment income, which should have been subject to PAYE, then cite the Court of Appeal decision in Hoey to disapply the PAYE regs and transfer the liability to the employees.

I suspect an awful lot of people are about to get a very nasty surprise courtesy of Hoey. And they won't even be able to appeal to a tribunal.

Cue the fallout...

[eek]

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.

Loan charge was payments received post November 2010 (from memory I've not double checked).

[ns1]

I'm not caught by loan charge and the scheme I was in (Actinium Management Ltd) was way back in 2006/7 and I have no idea whether they have done anything since then as their initial letter opening an inquiry said they were just speaking with the scheme and not to looking for any information from me.

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.

[handyandy]

Got one of these recently that used Covid as an excuse for why nothing has happened - interesting as the last communication I got form them was about 4-5 years ago!

Nothing specific just saying I should contact them to settle and that they will be restarting any investigations they had paused during Covid.

I'm not caught by loan charge and the scheme I was in (Actinium Management Ltd) was way back in 2006/7 and I have no idea whether they have done anything since then as their initial letter opening an inquiry said they were just speaking with the scheme and not to looking for any information from me.

[busgrw]

Do you have HMRC Open years where they opened a discovery? If no open years you dont have much to worry.

If you have open years, readup on the Hoey's appeal case which has made some headway, and is looking for financial support to push it further. There are a couple of threads on here. I know nothing about your scheme but it may be that Hoey's case is of benefit to you.

The letter from HMRC basically says we dont currently have any legal powers to take money from you, but will keep bugging and nagging you till you are so anxious and come to us for voluntary settlement

Thanks for your response LuxCon. Not entirely sure if I have any open years where they opened a discovery.... How would I check? They did come at me in 2016 because i'd used AML for a few weeks in 2011 before setting up my own LTD but I settled with them as was only circa £127 and didn't want to fight it.

Good to get your take on the letter . I'm not overly anxious just yet but will maybe get in touch with WTT for advise.

I'll also read up on the Hoey appeal case as sounds interesting and I could learn

Cheers.

[luxCon]

I just received this letter at the weekend and it's actually the first letter i've received from HMRC on any wrongdoings using Quantum etc and that a case has been opened on me so came as a surprise. Doesn't even say on the letter how much they think I owe, for what years etc. I was only involved with Network One in 2009/10.

Are people still using WTT Consulting for Network One/ Quantum advice etc? Any Network One specific forums/ threads I should be joining to find out more info?

Thanks

Do you have HMRC Open years where they opened a discovery? If no open years you dont have much to worry.

If you have open years, readup on the Hoey's appeal case which has made some headway, and is looking for financial support to push it further. There are a couple of threads on here. I know nothing about your scheme but it may be that Hoey's case is of benefit to you.

The letter from HMRC basically says we dont currently have any legal powers to take money from you, but will keep bugging and nagging you till you are so anxious and come to us for voluntary settlement