HMRC Enquiry letters on Loans from EBT and other schemes

[centurian]

In the real world, they effectively paid Disney £6m and this was "in effect the financial payment for Disney's participation". And Future Films got £44m for organising it all. Lucky Future.

And I suppose that was effectively the PR fee - for being able to say - this is a genuine scheme - we supported movies such as [Insert every Disney movie made since the scheme started], which they seem to keep staunching insisting to the media.

But the reality (and I presume HMRCs argument) is that virtually none of the money ever actually filtered down to a movie set at all.

[nazar]

The letter I received is stated 'Contractor Loans Settlement Opportunity' arrangements used up to April 20xx. This states it requires a response early next year.

It does state they will continue to tribunal if i don't respond

1. Is this the same letter everybody has received
2. Does this need appealing within 30 days
3. Can i confirm an accountant is my first port of call
4. How do I get involved in an action group

Hi Nissan did you get anywhere finding a group for ASMG ?

[nazar]

I am intrigued with this question too. As far as I can ascertain, IHT can arise where the taxpayer pays cash or other assets into a trust. The threshold is £325k and applies on a cumulative basis to the last seven years of transfers. Once this threshold is reached, an IHT liability of 20% applies to all subsequent transfers.

The issue really is that the IHT Act 1984 specifies that where there has been a waiver of remuneration, this does not qualify as a 'transfer of value' and hence IHT is not payable.

In contractor loan arrangements it may be possible to argue that we haven't in fact settled anything into the trust but instead we have waived remuneration. Unfortunately, even If we can successfully argue this we have another hurdle: we need to demonstrate that our offshore employer has not gained any tax relief from the amount of the remuneration waived.

I am not certain about how any of this will apply in practise to be honest, but interesting all the same.

I should also add that in addition to the 20% 'entry' tax there is also an exit charge, which is based on a time-related sliding scale starting at 6% and dropping to zero. Basically, every ten years a trust must pay 6% of the value of the assets it holds. However, in our cases, the age of the trusts is much less than 10 years so the IHT charge is far less significant.

Again I do not know enough about the trusts we used to form an opinion on an expected liability but it makes interesting reading.

For what it is worth, I have emailed HMRC asking for some clarity on the subject of IHT, raising the questions above. If by some miracle I get a substantive reply that isn't penned by the usual hMRC cretin I will pass this info on.

Hi Boobetty did you get that reply and what have you done about your situation so far?

[neil99]

Hi Nissan did you get anywhere finding a group for ASMG ?

Go the the ASIOM thread, look up a post from me or Saleos. Follow instructions. Get a move on.

Here: http://forums.contractoruk.com/hmrc-...ml#post2063798

[sabretooth1975]

Decided to settle?

I used an EBT for around 6 years from 2005-2011 whilst I was contracting. I have now received 4 years of re-assessments. For a while I did think about fighting as my EBT (Penfolds/Hamilton) has a fighting fund for legal costs. However, I am now planning to settle to 'draw a line in the sand'. I also do want this to drag on as I have got married in the past year and want to start a family in the next 1-2 years. I will most likely accept the settlement terms once HMRC have included IHT in the settlement , as the current offer only seems to include Income Tax and NIC. It will cost me around £77k but I am fortunate that as I have access to savings to cover this (due to re-mortgaging my home in 2012 in anticipation of this).

Can I confirm whether anyone else has decided to accept settlement? How long did it take to sort out the arrangements as I have been asked to provided bank statements or P11Ds for two of the years in question?

[jbryce]

I used an EBT for around 6 years from 2005-2011 whilst I was contracting. I have now received 4 years of re-assessments. For a while I did think about fighting as my EBT (Penfolds/Hamilton) has a fighting fund for legal costs. However, I am now planning to settle to 'draw a line in the sand'. I also do want this to drag on as I have got married in the past year and want to start a family in the next 1-2 years. I will most likely accept the settlement terms once HMRC have included IHT in the settlement , as the current offer only seems to include Income Tax and NIC. It will cost me around £77k but I am fortunate that as I have access to savings to cover this (due to re-mortgaging my home in 2012 in anticipation of this).

Can I confirm whether anyone else has decided to accept settlement? How long did it take to sort out the arrangements as I have been asked to provided bank statements or P11Ds for two of the years in question?

I think you need to speak to an accountant.
Settlements do not include NICs.
If you were not under investigation in the years, it may be that HMRC have no right to ask you for back tax.
APNs will not include NICs or interest.

Unless you need to clear your mind - I'd consider joining a group,

[StrengthInNumbers]

Personally cannot see any benefit in settling. Will pay the APN and will fight with group to get the money back which I am quite positive a correctly implement EBT scheme will get.

[derekdunn1873]

Are there any groups on here i could join for assistance

Hello All,

I received a notice from HMRC this week for a figure close to 7,000 GBP for 2010-2011 when i contracted through Bedouin.

I left the company prior to November 2010 and therefore thought that I would be exempt from any of this chasing by HMRC even if they found these schemes to be borderline.

Are there any groups of like-minded contractors out there that want to explore options with regards to what to do next that i could pool resources with?

Another interesting kicker is that I now live in the USA, with little intention to return to the UK, although own some investment property there. As I will be Non-Dom in the next few months, I will not be subject to inheritance or capital gains taxes, so wondering if this affects the position I should take in any way?

[derekdunn1873]

HMRC EBT-Any groups taking members to explore options with regards to what to do next

Hello All,

I received a notice from HMRC this week for a figure close to 7,000 GBP for 2010-2011 when I contracted through Bedouin.

I left the company prior to November 2010 and therefore thought that I would be exempt from any of this chasing by HMRC even if they found these schemes to be borderline.

Are there any groups of like-minded contractors out there that want to explore options with regards to what to do next that i could pool resources with?

Another interesting kicker is that I now live in the USA, with little intention to return to the UK, although own some investment property there. As I will be Non-Dom in the next few months, I will not be subject to inheritance or capital gains taxes, so wondering if this affects the position I should take in any way?

[DotasScandal]

Hello All,

I received a notice from HMRC this week for a figure close to 7,000 GBP for 2010-2011 when i contracted through Bedouin.

I left the company prior to November 2010 and therefore thought that I would be exempt from any of this chasing by HMRC even if they found these schemes to be borderline.

Are there any groups of like-minded contractors out there that want to explore options with regards to what to do next that i could pool resources with?

Another interesting kicker is that I now live in the USA, with little intention to return to the UK, although own some investment property there. As I will be Non-Dom in the next few months, I will not be subject to inheritance or capital gains taxes, so wondering if this affects the position I should take in any way?

I am not sure if there are any defense groups for your particular scheme, but you might want to post this under the Bedouin thread?

If the "notice" you have received is an "accelerated payment" one, you cannot appeal that, so you don't have other options but to pay I'm afraid.
Ignoring the letter is not recommended as HMRC is unlikely to just let it go (though they'll reach for the lower hanging fruits first).

Read up on APNs and FNs on our site www.dotas-scandal.org.

Being non-resident (I assume that is what you meant...) doesn't change a thing.