AM Limited COP8 HMRC Investigation Letter..

[DonkeyRhubarb]

Thanks Donkey, the 108 would be gross, so net approx. 80k

If you don't mind me asking, how do you get from 108 gross to 80 net? 80 is only 74% of 108.

[malvolio]

Ok, had a chat with a lady in AML and she gave me the following information

I am in a PBT scheme
We are not Dotas as we are self employed so should not be under the immediate spotlight

If the new bill passes I guess they will get around to us but who knows when, not quite sure how to take this within the bigger picture.

One really has to admire an optimist...

[Christop]

One really has to admire an optimist...

I think I need to be at the moment, not saying they won't chase me but that I may not be the first in line, this would at least give me time to liquidise assets and prepare for the worst

[DonkeyRhubarb]

So, in theory if you earn 108k a year before tax and received 78k in loans and a further 10k in wages which was taxed, the taxable excess would be on the loans?

Not quite. They would add up all your income (wages+loans) and work out how much you had underpaid.

What accounts for the 20k difference between the 108 and the 78+10? That wasn't all fees was it?

[varunksingh]

Ok, had a chat with a lady in AML and she gave me the following information

I am in a PBT scheme
We are not Dotas as we are self employed so should not be under the immediate spotlight

If the new bill passes I guess they will get around to us but who knows when, not quite sure how to take this within the bigger picture.

With no DOTAS, will it not mean higher chance of penalties?

[malvolio]

I think I need to be at the moment, not saying they won't chase me but that I may not be the first in line, this would at least give me time to liquidise assets and prepare for the worst

Very true; it would be foolish to think they aren't going to bite at some point. Being SE will not help of itself, ,especially if they start hanging unrelated cases together on the back of one win. HMRC are taking a very simplistic view of the situation.

[DonkeyRhubarb]

Very true; it would be foolish to think they aren't going to bite at some point. Being SE will not help of itself, ,especially if they start hanging unrelated cases together on the back of one win. HMRC are taking a very simplistic view of the situation.

I don't think people have still fully grasped the implications of the proposed "follower case" legislation.

https://www.whatdotheyknow.com/request/the_boyle_case

[ads1980]

So, what happens now? Do we just sit and wait for the demands to arrive? I have emailed AML but not had any response yet.....

[Christop]

So, what happens now? Do we just sit and wait for the demands to arrive? I have emailed AML but not had any response yet.....

Better to call them

[jrock]

AML budget update

I'm also very concerned about the proposed HRMC new powers. I received this update from AML today
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AML Budget Update
In last week’s Budget, HMRC announced that they intend, in certain cases, to try and press ahead with the introduction of new rules that allow them to issue demands for payments on account of disputed tax liabilities. The Accelerated Payment rules have been heavily criticized by all the leading tax, legal and accountancy bodies.

In particular, the proposals would allow HMRC to issue payment notices to individuals who have an open assessment in relation to a DOTAS registered arrangement. This could affect individuals who were employed by AML up until 5 April 2011.

Our view, supported by leading Tax Counsel, is that the proposals are illegal under UK and EU Law and are simply contrary to public policy in that they give unchecked powers to HMRC.

At this stage we do not know if HMRC would use these powers to make any tax demands from former AML employees. However, AML fully intends to challenge the proposals once the Finance Bill is published. There are over 70,000 people affected by these proposals and there is strong industry belief that these proposals breach EU law and they will be withdrawn.

If they are not withdrawn AML intends to challenge any notices issued under the new rules and has instructed lawyers to prepare a case for Judicial Review.

As always AML stands behind its planning and will take every step necessary to ensure it is successfully defended from challenge by HMRC. Once the detailed legislation is published, we will contact you again with further updates.

You should note that AML PCC, which has been in place since April 2011, is unaffected by the new proposals and complies with the latest Onshore and Offshore Intermediaries rules.
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It's good to know that AML are taking this seriously and will hopefully out up a fight on behalf of AML users.