SP Management - HMRC claims

[GregRickshaw]

*****URGENT Help Needed*****

I have received a Regulation 80 Determination and a Section 8 Decision from HMRC (this is basically saying my Limited company didn't pay Income tax or NICs for me as an employee in the year 2017/2018). I have contacted the accountant (Carnegie Knox) who have said to me, either pay the tax due, or pay them a 3 figure fee to appeal on my behalf.

I need help in terms of what I should do please, as I was using SP Management for the Tax year that HMRC are claiming to (2017/2018).

Please could I get some clarity on this, as I feel I am getting a one sided story from Carnegie Knox who are saying there are hundreds of their clients that have received these letters over the last month and I am being told over all (over the years) 95% of clients are appealing and only 5% of clients are settling without appeal.

My LTD company was closed down in 2020.


Questions I have are:

1) Should I appeal or settle (even though I know HMRCs estimate is more than what I owe).

2) If I appeal would this trigger another issue as in an APN or some other enquiry, so does this mean all an enquiry does is delay the payment due, but I will still have to pay the due taxes and by appealing you just end up spending more money (potentially with Carnegie Knox's settlement department which is called "PTS Settlements" that would charge a 4 figure sum to start the process to carry on appealing with HMRC.

3) I am being told that when one calls HMRC they ask probing questions into income and assets to get information as to ones financial situation to coordinate how much
pressure to put on the payee to get them to pay back the outstanding tax.

4) Would you say it's better to call HMRC or email them and do all correspondence on email?

5) Is this (Regulation 80 / Section 8) anything to do with IR35, I don't have IR35 Insurance, Should one be taking out IR35 insurance for the rest of their life (even if the LTD company is closed down), as it looks like HMRC can come knocking on our doors at any time!

There is a very good thread on this already running,

https://forums.contractoruk.com/hmrc...companies.html

.....but to save you time reading it as there is a lot and you need to move quickly.

Appeal as soon as you can as you only have 30 days from when your determination was issued.

HMRC were meant to have issued (not delivered) them by 5th April 2022 to avoid the deadline of 4 years.

If yours has any date after 5th April 2022 as issued then they can't do anything as they (HMRC) are too late.

However if the issued date is before 5th April you have to move quickly but you probably have enough time to seek professional help

In a nutshell appeal as soon as you can

HTH

cojak another one to add to the title?

[CrazyContract]

Thanks for the advice @GreggRickshaw

All my letters were dated 4th/5th April, however they were only received on around the 13th April. I've never known even 2nd class mail to take that long so not quite sure how that happened. What also astonishes me is that these letters are not even sent recorded mail, it scares me to think what would happen if somebody doesn't even receive them.

[DealorNoDeal]

In the past 22 years I don't know of a single contractor scheme which has successfully appealed, at a Tribunal, against an HMRC assessment.

Giving money to Carnegie Knox just sounds like throwing good money after bad to me. And I seriously doubt a 3-figure sum would take the appeal very far. I bet it wouldn't be long before they were asking for more to continue defending the case.

I know of people who've ended up forking out £thousands in these type of "class actions" with HMRC. But thus far, none have succeeded.

[GregRickshaw]

In the past 22 years I don't know of a single contractor scheme which has successfully appealed, at a Tribunal, against an HMRC assessment.

Giving money to Carnegie Knox just sounds like throwing good money after bad to me. And I seriously doubt a 3-figure sum would take the appeal very far. I bet it wouldn't be long before they were asking for more to continue defending the case.

I know of people who've ended up forking out £thousands in these type of "class actions" with HMRC. But thus far, none have succeeded.

Is this a scheme...?

Most us are appealing only to have the tax set aside in the absolutely vain hope a miracle occurs, and to stop the interest (in my case anyway).

I hear you though re... anyone winning ever. A Crown court judge presiding over a prosecution brought by the Crown in a Crown court? One winner only ever.
and sadly as I have said many times I can't see how CK or Boox or the new ones can win with the capture points.

[GregRickshaw]

Thanks for the advice @GreggRickshaw

All my letters were dated 4th/5th April, however they were only received on around the 13th April. I've never known even 2nd class mail to take that long so not quite sure how that happened. What also astonishes me is that these letters are not even sent recorded mail, it scares me to think what would happen if somebody doesn't even receive them.

Issued on 4th/5th April? Wow that is an absolute panic by HMRC IMHO... Not sure whether if they are the 5th you may have a case to have it overturned, the 4th sadly they have definitely got you and you need to move fairly quickly, to appeal the determination and at the very least get the tax set aside to avoid interest.

[GregRickshaw]

Just out of interest CrazyContract you seem to have been in a DR scheme, which is being investigated AND you also are a possible MSC?

ErrolFlynn you just have the MSC investigations?

[DealorNoDeal]

Is this a scheme...?

It sounds like one to me. Using loopholes, dubious forms of remuneration etc.

Can I smell Isle of Man?

[GregRickshaw]

It sounds like one to me. Using loopholes, dubious forms of remuneration etc.

Can I smell Isle of Man?

Yes the DR is but the OP also has an MSC investigation it seems?

[cojak]

There is a very good thread on this already running,

https://forums.contractoruk.com/hmrc...companies.html

.....but to save you time reading it as there is a lot and you need to move quickly.

Appeal as soon as you can as you only have 30 days from when your determination was issued.

HMRC were meant to have issued (not delivered) them by 5th April 2022 to avoid the deadline of 4 years.

If yours has any date after 5th April 2022 as issued then they can't do anything as they (HMRC) are too late.

However if the issued date is before 5th April you have to move quickly but you probably have enough time to seek professional help

In a nutshell appeal as soon as you can

HTH

cojak another one to add to the title?

I’m not sure that this has anything to do with MSC challenges, this seems like dodgy providers and pure tax avoidance to me.

I’m with DOND on this, it smells like IoM to me too.

[ErrolFlynn]

All please could someone answer the questions I have in my thread.

I honestly feel there are so many contractors who are between a rock and hard place and have nowhere to turn, and can't talk to anyone about it, as no one really understands these schemes!

SP Management was based in Isle of Man at one time, not sure where they are now.

Also the letter from HMRC is dated 25th March 2022, so when do I have until to respond / appeal?

Questions I have are:

1) Should I appeal or settle (even though I know HMRCs estimate is more than what I owe).

2) If I appeal would this trigger another issue as in an APN or some other enquiry, so does this mean all an enquiry does is delay the payment due, but I will still have to pay the due taxes and by appealing you just end up spending more money (potentially with Carnegie Knox's settlement department which is called "PTS Settlements" that would charge a 4 figure sum to start the process to carry on appealing with HMRC.

3) I am being told that when one calls HMRC they ask probing questions into income and assets to get information as to ones financial situation to coordinate how much
pressure to put on the payee to get them to pay back the outstanding tax.

4) Would you say it's better to call HMRC or email them and do all correspondence on email?

5) Is this (Regulation 80 / Section 8) anything to do with IR35, I don't have IR35 Insurance, Should one be taking out IR35 insurance for the rest of their life (even if the LTD company is closed down), as it looks like HMRC can come knocking on our doors at any time!