SP Management - HMRC claims

[DealorNoDeal]

-I think it's shocking that they now want more money to appeal against an issue they have seemingly created. I note they are also trying to refer people on to PTS which I believe is a subset of their company and potentially just another "money spinner".
-Upon speaking to a tax advisor they have advised not to bother paying Carnegie to appeal as they will simply write an appeal letter to HMRC, the issue will then be sent to tribunal at which point Carnegie will either not help any further or will charge you more. I find it hard to believe Carnegie will assist at a tribunal given they are the ones who setup this alleged disguised remuneration scheme.

I agree with the advisor. You can write your own appeal letter (see example earlier in this thread). I wouldn't hold out much hope of winning at a Tribunal

2) I reached out to all the Tax Consultants on this forum for advice. Only one of them has come back to me and that is WTT. You may want to talk to them as they are familiar with SP Management and Carnegie Knox and they have some sort of group initiative in order to appeal against these alleged Tax Avoidance Schemes. I am not sure that I completely understand it yet so I don't want to say too much or mis-quote what they are doing and so I urge you to contact them directly. I am considering joining them however I am also worried about wasting even more money if they are unsuccessful.

IMO, this is a long shot. Other groups have tried a very similar approach and so far none have been successful.

3) I reached out to my business insurance for which I had legal cover for a number of things including HMRC investigations. Needless to say it has been a struggle to get them to acknowledge and agree to take on the case which I have been pursuing all week and is still on-going. If they do agree, there may even be a chance I can get them to pay towards to the WTT group initiative.

I'd be surprised if any insurance would cover use of a tax avoidance scheme.

4) I have thought about contacting HMRC to discuss this, explain that I acted in good faith but stupidly enough got scammed, acknowledge that there is seemingly some sort of problem here and how we got here is irrelevant and that I just want to make this right and settle this problem for my own sanity, but that I don't know how I am going to afford this.
However I am worried that under pressure on the phone they may get me to say something which may make my position worse. I know nothing about tax and company accounts which is why I employed the services of accountants to take care of everything in the first place.

HMRC will almost certainly allow you to pay it off over several years (payment plan/time to pay).

I need to put in my appeal to HMRC within the next week which I will do but obviously just putting in the appeal wont make this go away, and so some sort of action needs to be taken.

If nothing else, lodging an appeal will buy you time.

I am basically pursuing all avenues here as like you I don't know what to do, I have been very shocked to receive these scary letters through the door and quite frankly the stress of it all is impacting on my health.

Take it from someone who's been there. Put your health first. Money is just money at the end of the day.

See above.

[CrazyContract]

Thank you for the feedback DealorNoDeal

I need to put in my appeal to HMRC, is it good enough to just say the following (as per previous comments) or do I also need to provide a reason for the appeal?

-----------------------------------------------------
Dear Sir or Madam,

Regarding your letter of dd/mm/yy, I wish to appeal and request postponement of payment.
-----------------------------------------------------

I would also like to ask HMRC for a Total settlement amount for all the years;

-Can I ask for that in the same appeal email?
-If so, any suggestions on how to word without making my position any worse?
-Is it a good idea to ask about all subsequent years even though I have only been approached for the 2017/18 year so far?

Thank you all again for your help....

[DealorNoDeal]

Thank you for the feedback DealorNoDeal

I need to put in my appeal to HMRC, is it good enough to just say the following (as per previous comments) or do I also need to provide a reason for the appeal?

What grounds did they give for issuing the assessment? You could just say that you do not agree that any additional tax is due.

-----------------------------------------------------
Dear Sir or Madam,

Regarding your letter of dd/mm/yy, I wish to appeal and request postponement of payment.
-----------------------------------------------------

I would also like to ask HMRC for a Total settlement amount for all the years;

-Can I ask for that in the same appeal email? I'd keep it separate.
-If so, any suggestions on how to word without making my position any worse? I don't think asking for a settlement figure would compromise your position at all.
-Is it a good idea to ask about all subsequent years even though I have only been approached for the 2017/18 year so far? Sure.

Thank you all again for your help....

Above.

[CrazyContract]

Above.

HMRC issued to my Ltd Company a Section 8 notice for alleged unpaid NICS and Regulation 80 determination for alleged unpaid PAYE tax.

-The amounts they are requesting seem disproportionate to me, and so I would like to see a breakdown of how they get those figures.
-It's also clearly incorrect as they are asking for unpaid NICS for the entire year when the company didn't even exist for the entire year

So I guess in summary I would like them to:
-Provide a breakdown of the amounts they have requested
-Provide a settlement figure so I know how much they are claiming from me in total

Thanks...

[DealorNoDeal]

HMRC issued to my Ltd Company a Section 8 notice for alleged unpaid NICS and Regulation 80 determination for alleged unpaid PAYE tax.

Since they didn't really give any specific grounds, you can just say that you do not agree that any additional tax or nics are due.

In a separate letter you can ask for a settlement figure, for each year, and a breakdown of how this has been calculated.

[DanielBrads]

A friend of mine lives in Douglas, Isle of Man and they said Knox House was raided by the financial crime unit? I'm not sure if it's true but I hope it is!

[ErrolFlynn]

I have received a letter back from HMRC saying they have accepted my appeal for payment postponement.

What's the next step on this, also if they have only highlighted 1 year, could they uncover more years in the same way in a years time (e.g. for 2018/19)?

I agree health first and keep sane about all this, else it will keep playing on the mind until it's settled in some way.

The NIC calculation is like 20% of the amount they think was received by me interms of payment, this is incorrect right? Can these figures be corrected by HMRC if I
highlight this? As in the amount I actually owe is a lot less than what they are stating to me.

[Fred Bloggs]

A friend of mine lives in Douglas, Isle of Man and they said Knox House was raided by the financial crime unit? I'm not sure if it's true but I hope it is!

I seem to recall that was quite sometime ago. Google might assist if you're curious.

[CrazyContract]

Above.

I have received a letter back from HMRC saying they have accepted my appeal for payment postponement.

What's the next step on this, also if they have only highlighted 1 year, could they uncover more years in the same way in a years time (e.g. for 2018/19)?

-I've asked a few tax consultants now who have all said in all likelihood they will pursue every subsequent year

I agree health first and keep sane about all this, else it will keep playing on the mind until it's settled in some way.

The NIC calculation is like 20% of the amount they think was received by me interms of payment, this is incorrect right? Can these figures be corrected by HMRC if I
highlight this? As in the amount I actually owe is a lot less than what they are stating to me.

-The amounts HMRC are requesting from me also seem over inflated, both the NIC figures and the PAYE figures. As they don't give a detailed breakdown it is hard to tell. The feedback I've had over this is that HMRC just makes an assumption and a rough calculation of what they believe is unpaid and then send that out - I don't know if this is true but it is what I have been told. I have also been told that most times there figures are incorrect and nearly always higher than the real figures.

Like you, my concern is what to do next as appealing is just like "kicking the can down the road".

As a matter of interest have you had any feedback or help from SP Management or Carnegie Knox?

ErrolFlynn
See Above

[Jumper]

This is HMRC we’re talking about. Of course they are going to open enquiries into every year. You now stick out like a sore thumb to them. Let’s remember that most if not all providers were made to handover their client lists to HMRC so they know who you’ve used and how long you’ve used them.

I would personally look back at all of your statements and recorded and determine the total value of your loans. I’m assuming the loan charge will be payable so you can easily add up the total tax payable by adding the total value of your loans as income to tax year 18/19.