HMRC using s684 ITEPA 2003 retrospectively with 2001/2 and 2002/3

[s684]

This is a continuation of my earlier thread which has a problem with it (Reply produces an error).
https://forums.contractoruk.com/hmrc...-2002-3-3.html

I've heard from two people who've written to their MP about this. Hopefully other people, who are affected, have done likewise.

You've nothing to lose, and you can do it by email (Google "writetothem").

[woody1]

They don't seem to want to touch these FOIs with a bargepole.

https://www.whatdotheyknow.com/reque...tgoing-1482936
https://www.whatdotheyknow.com/reque...coming-2346267

Maybe MPs will have better luck getting to the bottom of what's been going on.

[eek]

As I said previously the fact they won't answer the question tells you everything you need to know.

There are enough historic FOI requests where HMRC go beyond the FOI's remit to provide an answer that the lack of an answer here, actually provides you with the answer they don't want to provide..

[woody1]

As I said previously the fact they won't answer the question tells you everything you need to know.

Perhaps their lawyers have told them to go "no comment".

[s684]

This is starting to gain a bit of traction now.

If you are affected by this, I would urge you to write to your MP and ask them to challenge HMRC. It only takes a couple of minutes to email them using writetothem.com

Don't just cut and paste this. Adapt it and put it in your own words.

Dear MP

I would like to bring a serious matter concerning HMRC to your attention. I believe they may have been misusing legislation.

In recent years, they have been employing a discretionary power, under s684(7A)(b) ITEPA 2003, to set aside the PAYE regulations with contractor schemes so that they can collect tax from the contractors.

However, astonishingly, it turns out that they have been applying this to periods before the ITEPA 2003 legislation was even on the statute books. In other words, retrospectively. For example, in 2019, they applied it to pre-ITEPA tax years 2001/2 and 2002/3 with a scheme known as "Montpelier DTA".

I would be grateful if you could challenge HMRC to justify what they have been doing.

I look forward to hearing from you in due course.

Yours sincerely,

[stonehenge]

According to an inside source...

NTRT aren't doing anything proactive to specifically challenge 2001/2 and 2002/3, even though many of their members are affected by this.

That seems very remiss to me.

[s684]

According to an inside source...

NTRT aren't doing anything proactive to specifically challenge 2001/2 and 2002/3, even though many of their members are affected by this.

That seems very remiss to me.

That's a real shame because HMRC appear to be on the back foot over this. Just look at their evasiveness with the FOIs. If they were sure of their position, they'd have no trouble spinning responses.

[stonehenge]

That's a real shame because HMRC appear to be on the back foot over this.

They seem confident that they have a winning argument against s684 for all years. It just seems a bit of a missed opportunity not to also pursue this other angle, even though it has more limited benefit. I guess it's all or nothing as far as they're concerned.

[s684]

They seem confident that they have a winning argument against s684 for all years. It just seems a bit of a missed opportunity not to also pursue this other angle, even though it has more limited benefit. I guess it's all or nothing as far as they're concerned.

They're probably too late to add a new argument to their appeal, even if they wanted to. HMRC would object, and the tribunal probably wouldn't allow it. That boat has probably already sailed.

In any case, the courts may not be the best place to argue this. They seem far too willing to side with HMRC. (Which is why I don't share NTRT's optimism about beating s684.)

Getting MPs to call HMRC to account is perhaps the best hope. Long shot? Sure but what does it cost to fire off a quick letter?

[s684]

For anyone in NTRT reading this who thinks writing to MPs is worth a shot...


HMRC misusing legislation retrospectively

HMRC have taken it upon themselves to apply a piece of legislation retrospectively.

The legislation in question is s684(7A)(b) ITEPA 2003.

They have been applying this to periods before ITEPA 2003 was even on the statute books.

For example, in 2019 they applied it to tax years 2001/2 and 2002/3 with a contractor scheme known as "Montpelier DTA".

I would be grateful if you could challenge HMRC about this and call them to account.