Another Consulting Overseas Victim?

[aova]

Just found this forum and am reading with interest - however, after trawling back through the thread a bit I'm confused if the discussion relates just to the Sandiford (?) scheme that CO used to run or if it relates to AML too.

I was never in the first one but was an AML member/employee for 2.5 years before the MSC market went to pieces in February 2007 (at which point I got set up by CO/AML with my own Ltd. co which they quickly had to hand over to me completely.

I've received HMRC letters giving me notice that they are inquiring into my tax affairs for 2 tax years that I was under AML and in both cases they have said it relates to earnings and dividends relating to my empllyment with Actinium. The letter says they don;t intend to ask me any specific questions at this point.

Is anyone else in this situation? HMRC will not elaborate further with me directly. I have managed to contact a former director of Actinium who says they have picked a handfull of individuals under that sceme and are 'drilling down' into their individual returns and into the AML scheme - he said Actinium are actively involved in suplying HMRC with details they request and have their tax council on board too.

Their position is that they have councils advice that the sceme was legal and legit - but he did ssay that HMRC's stated intention is to prosecute.

Anyone else in the same situation (or is anyone actually one of the poor sods who have been picked on for personal attention)? My own position is that AML committed that they'd received councils advice that it was legit and I would ultimately go after them (or their insurer) for reimbursement if that advice was wrong. I think the problem is that they may end up doing a deal with HMRC where lots of employees take the hit and AML disapere from the face of the earth with HMRC blessing.

Anyone who is specifically affected by this I'd be interested in hooking up so we can share info.

Handy.

I received a letter today from good old HMRC letting me know that they intend to enquire into my tax returns in respect of dividends received from Actinium Ltd. and fishing for information on this.

Anyone willing share info please contact me

Aova.

[Sarkyn]

I would like to get a group together to see if we can go after the Directors of CO and sanfield as a group if the HMRC are correct and we have been conned!!!!!!!! I already have about 30 contacts willing ....

Would you be so kind as to contact me?

I've just received a massive pile of back-mail from my old address and I'd like to talk to you as it seems we are in a similar boat.

[email protected]

Thanks!

[Dan]

Consulting Overseas Victim...I sure am

I was also contacted by the Revenue letting me know that they intend to enquire into my tax returns (specifically income received from the Amazon partnership). After reading through the information on this site I fear I’m in a real mess and have lost sleep over not being sure what action I should take. I am keen to work with other partners of this scheme (or should I say victims) and take proactive action.

Just found this forum and am reading with interest - however, after trawling back through the thread a bit I'm confused if the discussion relates just to the Sandiford (?) scheme that CO used to run or if it relates to AML too.

I was never in the first one but was an AML member/employee for 2.5 years before the MSC market went to pieces in February 2007 (at which point I got set up by CO/AML with my own Ltd. co which they quickly had to hand over to me completely.

I've received HMRC letters giving me notice that they are inquiring into my tax affairs for 2 tax years that I was under AML and in both cases they have said it relates to earnings and dividends relating to my empllyment with Actinium. The letter says they don;t intend to ask me any specific questions at this point.

Is anyone else in this situation? HMRC will not elaborate further with me directly. I have managed to contact a former director of Actinium who says they have picked a handfull of individuals under that sceme and are 'drilling down' into their individual returns and into the AML scheme - he said Actinium are actively involved in suplying HMRC with details they request and have their tax council on board too.

Their position is that they have councils advice that the sceme was legal and legit - but he did ssay that HMRC's stated intention is to prosecute.

Anyone else in the same situation (or is anyone actually one of the poor sods who have been picked on for personal attention)? My own position is that AML committed that they'd received councils advice that it was legit and I would ultimately go after them (or their insurer) for reimbursement if that advice was wrong. I think the problem is that they may end up doing a deal with HMRC where lots of employees take the hit and AML disapere from the face of the earth with HMRC blessing.

Anyone who is specifically affected by this I'd be interested in hooking up so we can share info.

Handy.

[DonkeyRhubarb]

I emailed one of the former directors to see what's happening.

They knew in advance it would get investigated because it was a registered tax avoidance scheme. I would expect that it's a formality that every registered scheme gets looked into, so the fact that the Revenue have opened enquiries may not mean anything in itself.

AML have provided the info that HMRC requested but haven't heard a dicky bird since.

They will post any updates on www.actinium.co.uk but at the moment there is nothing to report.

[handyandy]

Yes the AML scheme was nothing like your assuming TazMan - it was more like the kind of return you got through a Ltd. Co. outside IR35 (and all the contracts with the agency/client where checked for IR35 status and deemed outside).

Probably begs the question why go with AML rather than Ltd Co - good question all I can say is that it seemed a lot less hassle and the MSC model was very popular back then and seeme dto have more certainty around it.

As I said before I think the revenue have a potential claim for NIC but not much else - the frustration is that they open an enquiry then decide not to ask you for any information directly as they are getting all the relevant details for a handfull of scheme members then, if they feel they have a case, will try and apply their 'assessment' to everyone.

[DonkeyRhubarb]

The AML scheme was nowhere near that aggressive, with a similar retained income to being outside ir35. In hindsight, the MTM scheme was probably taking the p*ss somewhat.

They will only add 100% to your tax bill in the case of evasion. At no point have they accused anyone of doing anything illegal, and they are "only" talking about interest penalties.

The worst case scenario is that you have to pay back the tax which you would have paid in the first place + interest. Of course, their interest rate is a couple of points higher than you could have got in a savings account but not the end of the world.

The real problem arises where people (and I know a few) have already spent the money.

Fortunately (or unfortunately), the amount of money I've got riding on this is not enough to justify really drastic measures, otherwise I'd be doing exactly what you suggested and talking to a travel agent right now

[ChimpMaster]

The tax you might owe must be enormous. Let's take an example where a contractor brings in revenue of 100k each year. Approximate calculations are:-

================================================== ====
Gross = 100,000
PAYE = 30,500
Employee NI = 4,500

i.e. HMRC will have expected some £35,000 in taxation from you each year.
================================================== ====

Now, assuming MTM/AML/etc pay you a nominal salary of 25k and the rest as a loan:

Salary = 25,000
PAYE = 4,000
Employee NI = 2,000

So you have paid £6,000 in taxation each year. You have probably paid no tax for the loan.
================================================== ====

In this example you could owe £30,000 in taxes for each year ... £150,000 for 5 years. Plus interest. And can they add 100% to the value of the outstanding tax?

I think you'd be better off leaving the country and throwing away your passport...

[DonkeyRhubarb]

If you click on my name in the thread, you should be able to send me an email.

I tried with yours but that option was not available, and I'm guessing it's because you have only just registered.

[handyandy]

Good points - my view is that they may be going after AML for avoiding NI contribs (in which case they could come after us for Employees contribs - but the employees are at least capped, emprs are not).

I think the killer would be if they deem the complex international share/company ownership structure to be ilegal and start claiming that the tax credit attached to divis is not valid - that would potentially hit us with additional basic rate tax on the divis.

Not sure how to PM you?

[Likely]

PS.

One thing which is different about the AML investigation, than the Montpelier one, is that the letters do not mention interest penalties or invite us to make any payments on account to mitigate them. You will have to take my word on this but the letters are also a lot friendlier and so far they have not accused the employees of doing anything wrong.

I could be mistaken but it sounds to me like they are targetting the Company in the first instance. That's not to say that they won't come after us in the end but at least there is a chance that they may waive any interest penalties.

With all the buzz lately about Tax Avoidance Schemes , some must become scapegoats eventually. I am considering going back LTD , that is soon after I've spent a few months with a scheme provider.