HMRC Enquiry letters on Loans from EBT and other schemes

[cojak]

There is one group you could join, although not solely EBT related.

Take a look at the 'No To Retrospective Tax' campaign. DonkeyRhubarb is a major contributor to it.

http://notoretrotax.org.uk/

[Andy123]

This was an employer EBT scheme . . . different thing altogether.

Regardless of the EBT variant, this does demonstrate (to me at least) the resolve and determination of the HMRC to go after all scheme members large or small, employer or employee to the very bitter end.

Furthermore, of all the advisors I have spoken with thus far, I have yet to find one that has said "Yes, I have successfully defended many EBT clients and won against HMRC and my clients had to pay nothing to HMRC".

I am thinking practically and pragmatically given that my particular scheme promoter (TRM) has chosen to adandon us.

This is an open debate and this is my viewpoint!

[bonetired]

The real problem is this will be over multiple tax years and if that's the case most of us will be broke and bankrupt. I'm having the worst weekend of my life with the worry. I imagine there is no chance in paying back in instalments either.

Exactly the same feeling. And to make matters worse it seems that Edge Consulting have walked away by renaming themselves Redstone Services ....

[Snow]

ASMG etc

I got the same letter on Saturday. ASMG are no more and I've been with White Collar Consulting/Financial for a while. I will ring them on Monday but not sure what to do. It's fair to say I'm gutted and feel very foolish.

I will appeal and would not mind joining other parties in doing so. I will write my letter in line with what's been recommended. However based on the comments here the initial feeling of feeling confident about a successful appeal have receded somewhat....


Any advice you can give please let me know.

Hi, also was with them, I emailed Katie, my normal contact to ask them, note that my 2007 return was investigated, still open and they engaged a law firm to handle it, I hope expect similar response.
One question, as the revenue are stating this income should have been subject to paye, is there not some liability for the employee to have paid this and the NI contributions?

[Snow]

Quick question, does the employee also not have liability for paye and NI that should have been paid? If revenue are considering the loans income then they would they not be libel for paye, and NI? Both that should have been paid by the employer since in all cases contractors were paid a base salary? Or am I being naive

[delboy15]

Count me in.

Hi folks,

I got the 08/09 letter yesterday demanding way much more money that I could possibly repay (and these days no longer contract nor earn anything like as much as I did in those glory days). I'm also father of 2 young kids so have a bit more to lose these days than I did then..I guess there are others in a similar circumstance.

I have yet to contact Cascade as it is the weekend - however a quote from "Michael J Perry" does make sense.



If the admin's have no issue - would it be possible to update my account so I can get PM's, what I suggest is all people who are effected specifically by Cascade form a group (we can start a private google + hangout), so whilst it would be ideal if Cascade do the right thing if that fails then we can try and work together and get representation (as surely our situation must be very similar). I don't know about others but I also think it would be a good thing so we can chat about it with people who are in the same situation, I know for me its quite a heavy burden and I don't really want to talk to anyone who is going to give me the "I told you so" talk... so having some "friends" would help. Obviously don't want to do this too publicly on this forum as we know HMRC are surely going to be reading...

Big thanks to Michael J Perry and DonkeyRhubarb for being so active and helpful.

Cascade effected people - if you reply to the comment on this thread to say you want to join at least we can have a show of hands...

Good luck to all...

Costco......also with Cascade and at the same position as you and would be happy to join. Many thanks for your effort

[mrs t]

There are probably ways to pay in installments, if agreed upfront with HMRC. Remortgaging our house will probably be the only option for me. It is all a major worry, needless to say this weekend when I received the letter, I have not had much appetite for eating or sleeping. I was with Edge and finished with them Dec10.

[costo]

The real problem is this will be over multiple tax years and if that's the case most of us will be broke and bankrupt. I'm having the worst weekend of my life with the worry. I imagine there is no chance in paying back in instalments either.

Turnover I PM'd you - yes I am in the same boat and I guess many other people are - the amount of money they are talking (especially over a number of years) would be more than any assets/cash/savings we have or be able to raise so if they really want to go for everyone then surely there would be a rather large amount of bankruptcies.. and how is that good for the economy? and of course human rights.. As morbid as it seems (and anyone who even nearly reaches this should seek help as it is never as bad as it seems) this is so significant I also would not be surprised if some folks took the "easy" option out and through themselves under a bus...

So I think this is far from clear cut and there is going to be a lot more surprises coming up - I do however believe that its important to unite and work collectively on this. Feel free to private message me if you want to chat.

[Snow]

Hi thanks for the above. Gives me some hope. Can you tell me what they initially advised you to do? Did you write a letter of appeal? Or something else?

Hi, not heard back about this, in2007 the scheme was registered, I think it might be the same scheme so naturally all returns were flagged so they could check out the set up etc. they said it was normal, once info was provided then revenue never replied to them while they waited on cases they lost. I will be interested to see if the new return under assessment is on the same scheme as that would certainly give rise to a question on whether revenue can lawfully investigate this one so late in the piece. Will let you know what happens tomorrow, hopefully we get the same response.

[costo]

How many people have got this letter?

This seems to be the most (if only) active thread on the internet about those that have "got the letter" - but given the amount of people who should be effected by this (and have or should be receiving a letter) there only seems a relative few who are discussing? does that mean

a) There are more lurkers than talkers
b) HMRC have only sent the letter to a very limited number of people (< 200) and seeing what steps we take?

Call me paranoid...but if I was playing HMRC's hand I would consider playing a few hands to test the opposition,how will we react? will we appeal? on what basis? because if they sent to everyone effected (which by some estimations is LOT of people) and everyone appealed at the same time they would surely not have the manpower to "reply" to the appeals? If however they could get a grip on the appeals before releasing to the masses then they could have the standard replies and gear themselves up to it....

Just a thought (and I have no prior experience in this matter at all) but am starting to wonder if Hector is playing a game here?

Thoughts...?