AM Limited COP8 HMRC Investigation Letter..

[webberg]

It appears that the letter from HMRC is along the lines of "your APN is due, we've agreed not to collect it as you're part of the APN but if the APN is eventually due, you will be charged a penalty based on the original due date".

So I suspect not a demand for the penalty (although that assumes that the JR action including no collection, applies to the penalty as well as the liability) but rather a warning that you might get one eventually.

Anyway, that's how we read the letter.

[jrock]

Notice of assessment 11/12

Yesterday I received a dreaded brown letter which is a notice of assessment for tax yr 11/12.

The letter is using language exactly as an APN with pressure to pay up in 30 days. Also the sum calculated is astronomical and although I was with AML for only 4 months of that tax year they have estimated a sum owed for the whole tax year even though I went PAYE afterwards and paid full rate tax.

This is truly unfair and adds to the nightmare that is already causing distress.

Has anyone else received such a letter on top of the APNs for previous tax years and has anyone had contact with AML recently?

[DotasScandal]

Hej Jrock,

A lot of people at Big Group are receiving these, after getting APNs for pre-2011 schemes. There's also a lot of AML'ers on there. You might want to consider joining.

Anyway, what you need to do in the immediate term is appeal the notice of assessment.

And yes, we agree the whole thing is designed to bleed us dry, and a complete disgrace. Osborne hoping to patch the deficit he created by robbing easy targets, nothing more and nothing less.
If you have a minute, send us a testimonial.

[Incandescent]

AML PBT Assessment 11/12

Yesterday I received a dreaded brown letter which is a notice of assessment for tax yr 11/12.

The letter is using language exactly as an APN with pressure to pay up in 30 days. Also the sum calculated is astronomical and although I was with AML for only 4 months of that tax year they have estimated a sum owed for the whole tax year even though I went PAYE afterwards and paid full rate tax.

This is truly unfair and adds to the nightmare that is already causing distress.

Has anyone else received such a letter on top of the APNs for previous tax years and has anyone had contact with AML recently?

I too received one of these menacing letters on Friday. Having read this entire thread and many more, dubbing HMRC gangsters is not as dramatic as I may have first thought. These kind of letters could kill someone with a weak heart.

I joined the AML PBT in October 2011 and was 'employed' by them for just 5 months.

They have "estimated" the 'loans' I received at something like 6 times the actual amount, with the actual amount being rather small in the grand scheme of things. Indeed, perhaps naively I called HMRC and the individual with whom I spoke commented that 'it was only an estimate as AML didn't want to give them the figures". I have already written to HMRC to refute the assessment and ask for the tax to be stood down until further representation is made (which I intend to do in the coming week)

I have three questions if someone with more insight and a kind streak could spare a moment to reply?!

1. As the actual correct amounts are quite small, for the stress of it all, should I just offer to pay what would have been owed as if I had received the actual income as a self-employed individual?
2. HMRC's calculations seem to suggest they deem the basis of my work as being self-employed and not employed per the AML tax return submitted on my behalf. If this is so, then I am quite within my rights to offset my valid expenses for that period against the profit?
3. Have PBTs actually been ruled illegal? The person to who I spoke at HMRC admitted that the scheme didn't seem to have a DOTA SRN....

Heartfelt thanks in advance and my commiserations to all caught up in this sorry mess.

[EBTContractor]

Firstly... HMRC has sent these demands to tens of thousands of people. I know PAYE people that also got the letter.

In my opinion they have sent hares running with this scatter-gun approach.

I can see this campaign of fear & terror being shut down.

See below my thoughts.

I have three questions if someone with more insight and a kind streak could spare a moment to reply?!

1. As the actual correct amounts are quite small, for the stress of it all, should I just offer to pay what would have been owed as if I had received the actual income as a self-employed individual?
2. HMRC's calculations seem to suggest they deem the basis of my work as being self-employed and not employed per the AML tax return submitted on my behalf. If this is so, then I am quite within my rights to offset my valid expenses for that period against the profit?
3. Have PBTs actually been ruled illegal? The person to who I spoke at HMRC admitted that the scheme didn't seem to have a DOTA SRN....

Heartfelt thanks in advance and my commiserations to all caught up in this sorry mess.

1. Do what is right for you - if you think paying this fictional debt will make HMRC leave you alone then do so, and if it means you will sleep better at night. You could put the amount into a deposit account with HMRC (like payment on account), so it doesn't accrue interest. 5 months can't be that much as the rough calculation should be 34% tax on the loan amount. Personally I've forked out 100k+ in APNs so far.
2. Yes, if self employed you can offset certain expenses like travel, accommodation etc. Not lunches.
3. Not illegal, but as HMRC says, this kind of artificial planning that serves no commercial purpose do not work technically. Good thing is being non-DOTAS means HMRC can't issue an APN for the time being. March 2016 budget will probably change this.

Also have a trawl through these threads. Suggest you join Big Group as well so we can all unite and fight those feral ba$tard$.

[DotasScandal]

3. Not illegal, but as HMRC says, this kind of artificial planning that serves no commercial purpose do not work technically.

Please could you point us to case law that determined that PBTs "do not work technically"?
Thanks.

[EBTContractor]

Please could you point us to case law that determined that PBTs "do not work technically"?
Thanks.

I have no references to case law - for those who have received more than one brown envelope you may have seen the enclosed "Spotlight", where HMRC makes the above claims, along with their "we win 80% of all cases" fictional spiel.

[DotasScandal]

I have no references to case law - for those who have received more than one brown envelope you may have seen the enclosed "Spotlight", where HMRC makes the above claims, along with their "we win 80% of all cases" fictional spiel.

Yes, I have seen the "spotlight". My comment was slightly sarcastic.
As we know, HMRC has so far never managed to convince a judge that EBTs "don't work technically" (Boyle was not EBT based, and as for Rangers / Murray group, HMRC lost 2 times out of 3 and the case is headed to the Supreme Court). So the correct answer was: "there is no relevant case law".
HMRC is trying to spread an unbelievable amount of FUD.
There is no particular reason to give them a hand.

[ITrecruiter1]

Letter from HMRC

Hi, I also received a letter from HMRC last week for 11/12.

They want 30k +3k in interest so total of 33k for a 47k loan i received from AML. (this is the number AML provided them)

30k out of 47k sounds alot to me, or am I looking at this the wrong way?

Can anyone advise how i can get the number HMRC are quoting verified ? Can only AML do this since they got all the time sheets?

[EBTContractor]

Hi, I also received a letter from HMRC last week for 11/12.

They want 30k +3k in interest so total of 33k for a 47k loan i received from AML. (this is the number AML provided them)

30k out of 47k sounds alot to me, or am I looking at this the wrong way?

Can anyone advise how i can get the number HMRC are quoting verified ? Can only AML do this since they got all the time sheets?

You are being taxed on the full income i.e. also the fees paid to aml. So salary + loans x 15% = income x 35% = fictional amount owed.

I know, insanity.