HMRC Enquiry letters on Loans from EBT and other schemes

[bluerover]

"I have received a template from someone at TaxTalk:

I wish to appeal against the 2008/09 Assessment recently issued.

I disagree that the amount assessed constitutes taxable income and I do not agree the figure issued.

I wish to apply for a full postponement of the tax demanded pending further clarification."


My only concern at the moment is that I have NOT received an assessment yet. I've only had a letter advising me that I will be asked to sign up for Self Assessment. My thining is that the wording of this letter does not apply to me at this stage and that I should wait until I receive anything else.

Thanks for sharing the wording of the letter. Much like Shevlane I was dismayed at the response of TaxTalkUK. Very uninterested and made more disconcerting as they are apppointed by Raingold (ex TRM) to deal with ex TRM staff.

Of course this post is related to all the companies at this time but we are all in the same boat particularly as we all seem to be having trouble getting any support from these providers (in whatever form they currently exist).

I'm throwing this out there. Do people feel we should use this template as an initial appeal and band together is it goes any further. Keep this post updated with any contact or just to confirm you have appealed. As with anything involving a number of individuals communication and shared information is the key. As DonkeyRhubard says one step at a time. Do we really need to worry about engaging an advisor to represent us if we don't even know HMRCs next step after the appeal letter? Given the timescales getting the appeal in is the most important thing at this stage.

I ask this openly so please I won't be hurt if people strongly disagree or feel I am being naive.

[DonkeyRhubarb]

"I have received a template from someone at TaxTalk:

I wish to appeal against the 20xx/yy Assessment recently issued.

I disagree that the amount assessed constitutes taxable income and I do not agree the figure issued.

I wish to apply for a full postponement of the tax demanded pending further clarification.


My only concern at the moment is that I have NOT received an assessment yet. I've only had a letter advising me that I will be asked to sign up for Self Assessment. My thining is that the wording of this letter does not apply to me at this stage and that I should wait until I receive anything else.

The wording above is what I would expect, and could be used by anyone who has received an assessment with 30 days to appeal.

[DonkeyRhubarb]

I'm throwing this out there. Do people feel we should use this template as an initial appeal and band together is it goes any further. Keep this post updated with any contact or just to confirm you have appealed. As with anything involving a number of individuals communication and shared information is the key. As DonkeyRhubard says one step at a time. Do we really need to worry about engaging an advisor to represent us if we don't even know HMRCs next step after the appeal letter? Given the timescales getting the appeal in is the most important thing at this stage.

I ask this openly so please I won't be hurt if people strongly disagree or feel I am being naive.

The most important thing is to get an appeal in within 30 days, so you don't get stung with a 5% penalty.

And send it recorded delivery because, with the shear scale of this, some appeals are bound to go astray.

[Vthomson]

Email from tax talk uk

The wording above is what I would expect, and could be used by anyone who has received an assessment with 30 days to appeal.

I have got letter to pay tax on loan for trm
And even though I haven't contacted tax talk uk I got
Email from them as below


We understand that you have received an assessment for 2008/09 in respect of sums received in the year that relate to an employment arrangement entered into with Talent Resource Management (TRM).

We have no knowledge of its basis, or of any correspondence relating to it. You may have previously appointed a different accountant or tax advisor to assist you with this and if so, you should pass your notice to them without delay.

If you have no previous advisor in this matter, we would be prepared to help you with it but we would need to agree terms for this engagement.

In any event, we suggest you should appeal against the assessment as soon as possible and apply for full postponement of the tax pending clarification of the situation. The suggested wording to be used is as follows:-


Appeal wording

I wish to appeal against the 2008/09 Assessment recently issued.

I disagree that the amount assessed constitutes taxable income and I do not agree the figure used.

I wish to apply for full postponement of the tax demanded pending further clarification

I only have 30 days to appeal
Still unsure on it
Anyone on same boat please advise

[EBTContractor]

Edge / Norla Consulting

Managed to round up a tax lawyer in my circle of friends and the person has reviewed my 2008 loan contract, pay slips and loan emails.

The person says it's perfectly within the eyes of the law as it was at the time.

Only thing that should have been changed is "interest free loan", LIBOR interest would have been more correct.

As Edge is still operating post the 2010 EBT clampdown, the view is that HMRC is after anyone who has ever dealt with Edge as the scheme has moved from tax avoidance to evasion. Shotgun approach?

My key takeaway is HMRC doesn't have a leg to stand on for anyone having received claims from 2008/2009 as Edge's EBT scheme, while being set up very creatively, was still fit for purpose at the time.

I'm going to RMSD an appeal hopefully today.

Hoping to have some professional wording put together which I'll share in this thread (mods, if not allowed please let me know).

[DonkeyRhubarb]

I only have 30 days to appeal
Still unsure on it
Anyone on same boat please advise

You have nothing to lose by appealing.

At the very least it buys you time to consider your options, and you can always settle at a later date if you so choose.

Appealing the assessment does not commit you to going to court (tribunal).

[contractor1985]

I agree with DonkeyRhubarb - priority is to respond with appeal, I suggest everyone uses the same template if we are in agreement (Vallah - would you concur this template is ok?)

Appeal Template v01:

"I wish to appeal against the 20xx/yy Assessment recently issued.

I disagree that the amount assessed constitutes taxable income and I do not agree the figure issued.

I wish to apply for a full postponement of the tax demanded pending further clarification."

Bluerover - I agree, get the appeal in, continue to monitor progress on this thread and then engage advice as/when required.

[EBTContractor]

You have nothing to lose by appealing.

At the very least it buys you time to consider your options, and you can always settle at a later date if you so choose.

Appealing the assessment does not commit you to going to court (tribunal).

This is also what the above mentioned tax lawyer mentioned to me..

Just a one liner, "I am appealing against the figures used.... Looking forward to hearing from you regarding next steps".

And for goodness sake use FedEx or send RMSD.

[ads1980]

I also received a letter before Christmas regarding payments I received as loans and the repayments I made for 2010/11. This is now being dealt with by the company who I was using at the time. Last week I received another letter relating to 2008/09 advising that HMRC didnt believe that these loan payments were genuine and I had 30 days to repay the amount of outstanding tax due. Again, the EBT scheme I was using at the time have now sent an appeal on my behalf. They have been very helpful even though I have not used them for 2 years now. They did send a response back to HMRC advising the below response.




We should be grateful if you will accept this letter as our client’s formal appeal against the assessment. The grounds for the appeal are :

1. The loans which you have referred to are precisely that, genuine loans. As such they are not taxable as income and we have no idea how you have arrived at such a conclusion, particularly following the decision and dicta in the recent case of Murray Group Holdings and others v The Commissioners for HMRC (2012 / UKFTT 692 ( TC ) TC 02379 ). In the circumstances the assessment is bad in law and excessive.

2. The assessment is made under the discovery provisions of S 29 TMA 1970 but in our view this is ultra vires HMRC’s statutory authority as the conditions of S29 (5 ) (6 ) are clearly not met. In regard to this the recent decision in HMRC v Charlton & Corfield FT C73/2011 (2012) UK FTT 770 (TCC) is particularly in point and in our opinion the assessment is time barred and consequently invalid.

In addition we wish to request the postponement of all tax assessed as shown as payable in the notice of assessment. The amount to be postponed is therefore £XXXX
We look forward to receiving acknowledgment of this appeal and postponement application.

[shevlane]

Again, the EBT scheme I was using at the time have now sent an appeal on my behalf. They have been very helpful even though I have not used them for 2 years now. They did send a response back to HMRC advising the below response.


We should be grateful if you will accept this letter as our client’s formal appeal against the assessment. The grounds for the appeal are :

1. The loans which you have referred to are precisely that, genuine loans. As such they are not taxable as income and we have no idea how you have arrived at such a conclusion, particularly following the decision and dicta in the recent case of Murray Group Holdings and others v The Commissioners for HMRC (2012 / UKFTT 692 ( TC ) TC 02379 ). In the circumstances the assessment is bad in law and excessive.

2. The assessment is made under the discovery provisions of S 29 TMA 1970 but in our view this is ultra vires HMRC’s statutory authority as the conditions of S29 (5 ) (6 ) are clearly not met. In regard to this the recent decision in HMRC v Charlton & Corfield FT C73/2011 (2012) UK FTT 770 (TCC) is particularly in point and in our opinion the assessment is time barred and consequently invalid.

In addition we wish to request the postponement of all tax assessed as shown as payable in the notice of assessment. The amount to be postponed is therefore £XXXX
We look forward to receiving acknowledgment of this appeal and postponement application.

Hi ads1980... thanks for sharing this. It sounds like a professional response, particularly since it is coming from your representative (and reads 'we', rather than 'I'). It sounds like your provider is being a lot more helpful & proactive than what ours are (Talent Resource Management / Raingold at least). Who was your EBT scheme with?