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

[handyandy]

Got closure notices from HMRC yesterday for Actinium - no amendment to return and no tax due.

see here https://forums.contractoruk.com/hmrc...ml#post2949431

[DealorNoDeal]

As Fred says, once HMRC have opened an enquiry, there is no time limit on when they have to conclude their investigation. They could sit on it for 100 years. The fact that they are citing Covid as a reason for a (15 year) delay suggests even they're a bit sheepish about it but there's nothing you can do about this. The law allows them to take however long they want.

[Fred Bloggs]

I got this letter recently and am another one who was with Actinium in the mid 2000s. I’d be interested to hear what you have to say DealorNoDeal.

I have a meeting with an accountant tomorrow and I guess I am looking at how much HMRC are after in terms of a settlement. I received letters about an enquiry being opened back in 2007 but haven’t heard anything from HMRC since, so this has come out of the blue.

Isn’t there some 4, 6 and 20 year time limit on enquiries? My understanding was that it was only 20 years if HMRC are claiming dishonesty. I guess that’s quite objective, but given I was following the advice I was given at the time, it certainly wasn’t dishonesty on my part, I thought I was in a scheme which followed regulations.

The enquiry opened in 2007 has no natural expiry date. Time to pay up, I would say. Despite what you were told and believed, the scheme was a tax avoidance vehicle. In the end, you are the person responsible for paying the correct tax on your income, not the scheme. Your accountant can help you check that what HMRC are saying is correct. Conventional wisdom these days is that it's a futile fight if you want to challenge the demand for unpaid tax.

[uffe]

I got this letter recently and am another one who was with Actinium in the mid 2000s. I’d be interested to hear what you have to say DealorNoDeal.

I have a meeting with an accountant tomorrow and I guess I am looking at how much HMRC are after in terms of a settlement. I received letters about an enquiry being opened back in 2007 but haven’t heard anything from HMRC since, so this has come out of the blue.

Isn’t there some 4, 6 and 20 year time limit on enquiries? My understanding was that it was only 20 years if HMRC are claiming dishonesty. I guess that’s quite objective, but given I was following the advice I was given at the time, it certainly wasn’t dishonesty on my part, I thought I was in a scheme which followed regulations.

[DealorNoDeal]

If the scheme users want me to reveal what I think HMRC are doing, I will. I don't think I'd be handing anything to HMRC because it's pretty damn obvious.

Alternatively, PM me.

[DealorNoDeal]

+1 - hardly surprising the letters have gone out now given how it worked and a recent appeal result.

Initially I thought it might have something to do with Hoey but now I'm not so sure. I think there is something far more obvious.

[eek]

I think I can guess what HMRC are up to. It only dawned on me when I searched the entire HMRC Scheme Enquiries forum and came across something that happened with this scheme.

I'm not sure I should say what it is just in case it's tempting fate.

+1 - hardly surprising the letters have gone out now given how it worked and a recent appeal result.

[DealorNoDeal]

I think I can guess what HMRC are up to. It only dawned on me when I searched the entire HMRC Scheme Enquiries forum and came across something that happened with this scheme.

I'm not sure I should say what it is just in case it's tempting fate.

[cojak]

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.

Well here’s another poster from a couple of years ago…

Hi

My wife received what appears to be a standard/generic letter regarding the loan charge review, with various pieces of advice on what to do next etc.

However. . . . .

This is completely out of the blue, she has never received any such letter in the past, and to go a step further we don't even know what the "loan charge" is (apologies for being a complete numpty)?

For background I did about 10 years as a contractor (have been permanent for the last 10 years) mostly via ltd company in the early years, then via an umbrella, with 2 years under what I guess the HMRC would class as a scheme (Consulting Overseas, Actinium) in 2004/06 with my wife as a shareholder in 2 x offshore BVI companies. However I don't recall it being any kind of loan scheme, we were paid dividends IIRC. My wife is full time nurse and has only ever had to complete SA for the years 04/06 and has been permanent for the NHS all her life.

Could HMRC just have sent this letter out by mistake, or could it be that how I worked back in 2004 was some kind of loan scheme to which they are referring to?

I know previous schemes by Consulting Overseas (Sandfield?) have been subject to HMRC investigation but I'm not aware of anything related to Actinium.

Any advice (and an explanation of what a "loan charge" is would be most appreciated.

Regards

[DealorNoDeal]

...during the period 2005 - 2007...

I hate to be the bearer of bad news but if you settle those tax years you're looking at a hefty amount of late payment interest on top.

Approximate rates:
2005/6 ... 58%
2006/7 ... 50%

Eg. if your assessed tax/nics liability for 2005/6 was £20,000, then the interest would be another £11,600 ie. total amount owed £31,600