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EBT HELL: Assignment Solutions Isle Of Man / Premier Tax Strategies / DMS

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    Originally posted by MrsB1974 View Post
    So... if I receive an APN for tax payable based on a reasonably accurate total of EBT loans, and I pay it within the timeframe allowed, when is the interest applied? Only when HMRC wins against ASIOM (or a scheme with an identical set up)?

    And how do they notify you of the interest payable - by issuing another APN?

    The only thing I'm really nervous about is if HMRC does the dodgy and increases their 'calculation' of loan amounts, thus increasing the tax payable in comparison to the settlement opportunity calc. (Though surely if I have their settlement calc in writing they have to stick with that loan amount?)

    Many thanks
    The APN is a payment on account of a final agreed liability.

    For example;

    You're in a scheme in 2010 and received income of £100. You paid £10 of tax.
    In 2015, HMRC decide that you should have paid £40.
    They issue an APN for £30 which you pay at the due time.
    In 2017 your scheme gets a final Court decision as to liability. This is set at £35.
    You get a final assessment for £35. You have paid £40, being £10 in 2010 and £30 in 2015.
    You are due a refund of £5.
    BUT, you owe interest on £25 (final £35 less £10 originally paid) from 2010 to 2015. Let's say £7.
    HMRC owes you interest on £5 (£30 APN less final balance due £25) from 2015 to 2017, say £1.

    Net position in 2017:

    Tax refund £5
    Interest due to HMRC £7
    Interest due to you £1

    You owe HMRC £1.

    Notification arrives via an assessment and notice on your HMRC account.

    The settlement calculation is irrelevant in the above scenario. The settlement is HMRC's current view of liability. A Court may decide that it is incorrect and impose their own version. The Court's opinion will take precedence.

    There is a well established principle that HMRC's opinion, published or not, is just that, an opinion. You cannot rely upon it being correct. Only a Court can give a final decision.

    A settlement procedure is essentially an agreement between you and HMRC that whatever that final decision, both parties give up their right to reopen the calculation. They are usually said to be unbreakable but if there is a massive difference between the settlement and the final decision I can see that position being challenged. I'm not lawyer enough to guess at the answer there.

    Hope this helps.
    Last edited by webberg; 2 April 2015, 11:58. Reason: spelling - dates
    Best Forum Adviser & Forum Personality of the Year 2018.

    (No, me neither).

    Comment


      Paying an APN, just like paying on account, stops further interest accruing.

      Comment


        Originally posted by DonkeyRhubarb View Post
        Paying an APN, just like paying on account, stops further interest accruing.
        Correct.

        Thanks because I spotted an incorrect date in my example - now corrected.
        Best Forum Adviser & Forum Personality of the Year 2018.

        (No, me neither).

        Comment


          IHT calcs on loan write-off question

          Hi All. Can anybody help with how IHT is calculated on loan write-off, given that no IHT has been added in my circumstance if the loans are not written off? Thanks in advance.

          Comment


            Originally posted by 100Steve33 View Post
            Hi All. Can anybody help with how IHT is calculated on loan write-off, given that no IHT has been added in my circumstance if the loans are not written off? Thanks in advance.
            0.25% per quarter or 1% a year.

            e.g. Trust from 08-09. Will be 7%

            Comment


              APN 'warning' letter received

              Just checking in with other ASIOMers - have you received your warning letter that an APN is on its way?

              I have

              Comment


                Originally posted by MrsB1974 View Post
                Just checking in with other ASIOMers - have you received your warning letter that an APN is on its way?

                I have
                Not yet but I am expecting it. I've been engaging with the settlement line people too.

                Comment


                  Neil99 and MrsB. Are you both on the private forum? Perhaps you might post there as I have an interest in the content of your precursor letter and more information to add. If not, PM me and I will contact the mod and have you added.

                  Comment


                    Originally posted by Boobetty View Post
                    Neil99 and MrsB. Are you both on the private forum? Perhaps you might post there as I have an interest in the content of your precursor letter and more information to add. If not, PM me and I will contact the mod and have you added.
                    I didn;t know about a private forum! Will PM.

                    Comment


                      Originally posted by Boobetty View Post
                      Neil99 and MrsB. Are you both on the private forum? Perhaps you might post there as I have an interest in the content of your precursor letter and more information to add. If not, PM me and I will contact the mod and have you added.
                      Have sent you PM too. Thanks

                      Comment

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