HMRC Enquiry letters on Loans from EBT and other schemes

[Bunnster]

Norla Consulting - Greenbay and Edge Consulting employers - who else?

Hi,
I was employed offshore by Norla Consulting, using Greenbay and Edge Consulting.

I think EBTs were administered by Tenon in IOM.

I received COP8 letters for 2005 and 2006 tax years (in 2007 and 2008 respectively). Nothing since. Norla informed me they were 'dealing' with the enquiry.

In July I received the Settlement Offer letter :-(

So firstly do I just declare any tax free loan income for those 2 tax years (only 2 tax years I was employed by these employers)?

Secondly, is there any group for those using Norla?

Thanks,

Bunnster

:-)

[TheDandy]

Hi,
I was employed offshore by Norla Consulting, using Greenbay and Edge Consulting.

I think EBTs were administered by Tenon in IOM.

I received COP8 letters for 2005 and 2006 tax years (in 2007 and 2008 respectively). Nothing since. Norla informed me they were 'dealing' with the enquiry.

In July I received the Settlement Offer letter :-(

So firstly do I just declare any tax free loan income for those 2 tax years (only 2 tax years I was employed by these employers)?

Secondly, is there any group for those using Norla?

Thanks,

Bunnster

:-)

There is a dedicated thread for the Edge EBT:

http://forums.contractoruk.com/hmrc-...bt-thread.html

You have already declared the loans on the respective SAs for the years in question. That's why you received the COP8s in the first place.

Check out the Edge thread for representation options.

[bkkit1971]

TRM Settlement offer

Hi

I have decided to settle with HMRC based on their SA 2008/2009 figures to close the case and get on with my life. I don't see any added value to put monies in CTD, or wait to pay Layers, TAX consultants, accountants, court fees and possible penalties and further interests later. This obviously applies to my personal circumstances.
My accountant says I can always reclaim the TAX paid back if HMRC will lose their tribunal case with TRM or any court case against individuals.
I will write a complementary letter where I will state I would like to proceed to settlement on the basis of their SA figures although I still disagree with HMRC view that the loan element of my remuneration in the years 2008/2009 constitutes taxable income.

does anyone in this forum share the view of my accountant?

Cheers

[DonkeyRhubarb]

My accountant says I can always reclaim the TAX paid back if HMRC will lose their tribunal case with TRM or any court case against individuals.

If you settle you can never get your money back. Settlement is final and binding.

[Rob79]

Hi

I have decided to settle with HMRC based on their SA 2008/2009 figures to close the case and get on with my life. I don't see any added value to put monies in CTD, or wait to pay Layers, TAX consultants, accountants, court fees and possible penalties and further interests later. This obviously applies to my personal circumstances.
My accountant says I can always reclaim the TAX paid back if HMRC will lose their tribunal case with TRM or any court case against individuals.
I will write a complementary letter where I will state I would like to proceed to settlement on the basis of their SA figures although I still disagree with HMRC view that the loan element of my remuneration in the years 2008/2009 constitutes taxable income.

does anyone in this forum share the view of my accountant?

Cheers

If you've quoted your accountant accurately then it pains me to say that he is probably wrong.

If you enter into a settlement and agree a "price" with HMRC then your position will not be adjusted if the eventual outcome of a Court decision varies from the settlement figure.

On the one hand, if the Court decides your scheme was valid and no more tax is due, you have lost out. On the other, if the final liability is higher than the figure you settled at, you have "won".

Being able to take a benefit in the event of "win" but suffer no downside in a "lose" is not part of the settlement process.

You MUST ask your accountant to clarify this. If he insists he is correct, unless there are circumstances you have not mentioned, terminate his work for you and move.

[dangerouswhensober]

Hi

I have decided to settle with HMRC based on their SA 2008/2009 figures to close the case and get on with my life. I don't see any added value to put monies in CTD, or wait to pay Layers, TAX consultants, accountants, court fees and possible penalties and further interests later. This obviously applies to my personal circumstances.
My accountant says I can always reclaim the TAX paid back if HMRC will lose their tribunal case with TRM or any court case against individuals.
I will write a complementary letter where I will state I would like to proceed to settlement on the basis of their SA figures although I still disagree with HMRC view that the loan element of my remuneration in the years 2008/2009 constitutes taxable income.

does anyone in this forum share the view of my accountant?

Cheers

Your accountant was possibly thinking about your paying an APN - which is not a settlement - it is just an advance payment on a case which will remain open until there is some final tax tribual ruling on the corresponding scheme. HMRC have said that if payments are made in response to APNs and the relevent cases subsequently go against HMRC (in the highest tax court), then those payments will be refunded - with interest ...

(But then HMRC have also made a lot of other statements which, in hindsight, are questionable ...)

[bkkit1971]

Your accountant was possibly thinking about your paying an APN - which is not a settlement - it is just an advance payment on a case which will remain open until there is some final tax tribual ruling on the corresponding scheme. HMRC have said that if payments are made in response to APNs and the relevent cases subsequently go against HMRC (in the highest tax court), then those payments will be refunded - with interest ...

(But then HMRC have also made a lot of other statements which, in hindsight, are questionable ...)

It's not an APN, I have been asked to sign the CLSO2 module where I will agree to settle my appeal and the TAX due (based on SA 2008/2009 figures). This will close the case. My accountant is part of a well known leading UK wide firm, however she might be wrong as I have been reading on this and other forums contracting opinions by different accountants over the years so frankly, I remain skeptical on their opinions anyway, that's why I posted to this forum.

Too many uncertainties, lots of speculations over the years on what's going to happen, there is no panacea here. The only certain thing is that HMRC will stay on these cases for as long as it takes ........not for me

[DonkeyRhubarb]

There is certainly an argument for settling, even though you forfeit the chance of possibly benefiting from a future court case.

Life is short and sometimes it's better to draw a line in the sand and move on. The alternative, when you are dealing with HMRC, is years of uncertainty.

[flamel]

I'm all geared up for bankruptcy next year but suddenly I have a good permanent job offer. Anyone got any idea how this will affect the bankruptcy (I have assets less than 25% of their likely demand and no chance of paying off the balance before retiring in a few years)?

[Vegas]

I'm all geared up for bankruptcy next year but suddenly I have a good permanent job offer. Anyone got any idea how this will affect the bankruptcy (I have assets less than 25% of their likely demand and no chance of paying off the balance before retiring in a few years)?

Check your contract of employment, some have clauses that mean bankruptcy is grounds for dismissal.