AM Limited COP8 HMRC Investigation Letter..

[DonkeyRhubarb]

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

You're not kidding. That's a tax rate of 64%.

At 40% you would be looking at a gross of £75k. (75k * 40% = 30k)

Even if they were taxing you on AML's fees as well, there's no way it should come to anywhere near £30k.

[DotasScandal]

That's the standard modus operandi of HMRC.

1/ Send assessment with completely over the top figure
2/ Hope taxpayer misses the relatively narrow 1 month appeal window. If so, that's a win for the Treasury.
3/ If taxpayer protests, claim the assessment was made "to the best of their knowledge"

In other words: it's a government-backed, risk-free scam.

[ITrecruiter1]

You're not kidding. That's a tax rate of 64%.

At 40% you would be looking at a gross of £75k. (75k * 40% = 30k)

Even if they were taxing you on AML's fees as well, there's no way it should come to anywhere near £30k.

Thanks for the insight guys. So I am waiting for AML to come back to me.

Are they the only ones that can tell me how much i should have paid since they have all the info?

Do people recommend i call HMRC to appeal this? or is this something AML do?

[DotasScandal]

Thanks for the insight guys. So I am waiting for AML to come back to me.
Are they the only ones that can tell me how much i should have paid since they have all the info?
Do people recommend i call HMRC to appeal this? or is this something AML do?

You need to lodge the appeal in writing.
Please take this advice: do not call HMRC for ANYTHING, always write.
You'll thank me later.

[webberg]

Thanks for the insight guys. So I am waiting for AML to come back to me.

Are they the only ones that can tell me how much i should have paid since they have all the info?

Do people recommend i call HMRC to appeal this? or is this something AML do?

Get advice.

What do you want AML to do and are you sure that they're acting fro you and not for themselves?

Only by appointing your own agent can you be sure somebody is working for you and not protecting a commercial position.

[ITrecruiter1]

I was hoping they would advise if they will be sending a letter of appeal on my behalf since they are an authorized agent.

I also wanted them to verify the numbers i received from HMRC is correct or not and tell me what the real number would be if i had been a ltd company/used umbrella company.

Am i expecting too much?

Get advice.

What do you want AML to do and are you sure that they're acting fro you and not for themselves?

Only by appointing your own agent can you be sure somebody is working for you and not protecting a commercial position.

[Incandescent]

I was hoping they would advise if they will be sending a letter of appeal on my behalf since they are an authorized agent.

I also wanted them to verify the numbers i received from HMRC is correct or not and tell me what the real number would be if i had been a ltd company/used umbrella company.

Am i expecting too much?

@ITrecruiter - If you call AML, as I did yesterday, they appear to be most helpful. They will handle the appeal on your behalf. Whether, as others have said, they really have our interests or their own at the centre of their efforts is debatable. They are however, from what I can glean, one of the few tax planners who are still around and defending their work. You will of course need to authorise them as your agent if they aren't already, so they can talk to HMRC.

I have a concern which I wonder if someone here can answer. If AML appeal, what is a likely time frame / range for HMRC to respond. Can they just say "appeal denied" or do they effectively have to prove that this was some sort of aggressive avoidance / evasion? And wouldn't the latter require some legal proceedings and some form of case law / precedent to rule PBTs as 'illegal'? Is it possible that HMRC after appeal could sned me an APN for the full ridiculously over estimated amount? Would that be the stage to supply them the full actual figures or is too late?

Thanks to all who have been so helpful with their replies so far. I really do appreciate it.

[DonkeyRhubarb]

I have a concern which I wonder if someone here can answer. If AML appeal, what is a likely time frame / range for HMRC to respond. Can they just say "appeal denied" or do they effectively have to prove that this was some sort of aggressive avoidance / evasion? And wouldn't the latter require some legal proceedings and some form of case law / precedent to rule PBTs as 'illegal'? Is it possible that HMRC after appeal could sned me an APN for the full ridiculously over estimated amount? Would that be the stage to supply them the full actual figures or is too late?

Tax appeals are decided at a tribunal. (Google "first tier tax tribunal")

If the AML scheme was notified under DOTAS then HMRC can issue APNs.

[DotasScandal]

I also wanted them to verify the numbers i received from HMRC is correct or not and tell me what the real number would be if i had been a ltd company/used umbrella company.
Am i expecting too much?

Probably.
I would be surprised if they had the resources to do all these calcs/reconciliations for all their clients/former clients. Not exactly a revenue-generating activity.
Appreciate that most of these guys still out there are primarily concerned with keeping their business going, not necessarily looking after your well being.
But by all means, ask. I might be wrong.
At any rate, consider joining Big Group. This will not be a short journey.

[ITrecruiter1]

Finally spoke to someone at AML, who told me the same as the above OP.

I asked to get list of all of my loans for that year so i can get my accountant to do the calculations on what i would have paid as a ltd company.

Interestingly the AML guy told me they have made a few appeals so far which have been successful and none have been declined as of yet, i found that hard to believe and asked him to verify that and confirm over email, which he has done.

i forgot to ask about timeframes? I just feel like getting the correct numbers and settling with HMRC, but then if it's a 6-9 month window before this comes to a close then i dont mind risk paying that extra interest incase AML win there argument.

Probably.
I would be surprised if they had the resources to do all these calcs/reconciliations for all their clients/former clients. Not exactly a revenue-generating activity.
Appreciate that most of these guys still out there are primarily concerned with keeping their business going, not necessarily looking after your well being.
But by all means, ask. I might be wrong.
At any rate, consider joining Big Group. This will not be a short journey.