HMRC Enquiry letters on Loans from EBT and other schemes

[DonkeyRhubarb]

Any idea what HMRC are waiting for?? Could it be that they also have holes in their case?

HMRC are in disarray. They have a backlog of over 20,000 ebt/loan/intermediary cases, involving over 70 different promoters.

This will take years to sort out and I wouldn't be surprised if many cases end up going nowhere and ultimately get written off.

If you've lodged your appeal I'd just put it on one side and get on with your life.

[DonkeyRhubarb]

Notice of further assessment (discovery)

A number of people who were in the BN66 scheme, who had not previously been investigated, have been receiving the same notices as you guys for 06/07 and 07/08.

From what I hear, sending out these notices has been quite an effective ploy by HMRC, and a significant number of contractors have been spooked into paying up. Not a bad return for the cost of a few thousand 2nd class stamps!

[Michael J Perry FCA]

Further hmrc action

I have not posted on this forum since my London Seminar back in April this year since there was nothing significant to report.

However, you may have received my regular updates entitled CLIENT ALERT!

I predicted further specific HMRC actions back in May and these are now taking place in the form of further assessments under Section 29 TMA 1970.

We will need to see the extent of these current developments.

[varunksingh]

But Nothing yet to worry about

I have not posted on this forum since my London Seminar back in April this year since there was nothing significant to report.

However, you may have received my regular updates entitled CLIENT ALERT!

I predicted further specific HMRC actions back in May and these are now taking place in the form of further assessments under Section 29 TMA 1970.

We will need to see the extent of these current developments.

HMRC are trying to send everyone who used an scheme as earlier as possible they can. But I am yet to see where HMRC legally wins against an EBT used for Loans with independent trustees and no guarantee of loans

[DonkeyRhubarb]

HMRC are trying to send everyone who used an scheme as earlier as possible they can. But I am yet to see where HMRC legally wins against an EBT used for Loans with independent trustees and no guarantee of loans

No but it's worth the cost of a few thousand 2nd class stamps if the letters scare some people into coughing up.

And from what I hear it's working.

[ssbahra]

I'm new to this thread too and have followed the instructions from Edge Consulting to appeal using their template. Sent by guaranteed delivery.

HMRC have now written to me again indicating that they have received my appeal and postponement application.

The letter goes something like this:

I note you appeal against the 2008-2009 assessment, and your contentions in this respect. However, my view remain that the funds you received are taxable - potentially under a number of alternative provisions, including employment income rules and specific anti avoidance legislation. We feel this applies, but will consider any further evidence you may wish to put about the operation of the scheme in our particular circumstances in support of your appeal that the income is not taxable. If you do wish us to consider further details at this time, could you please also confirm the full amount of sums you received as loans, if my original estimate is incorrect. If I do not hear from further from you at this point your appeal will remain open. I will nevertheless continue to review the arrangements and will write to you again in the near future

Then there's further details about the postponement and their estimate, then ways to pay, etc...

Will send a copy of this letter to Edge Consulting on Monday and see what they have to say. But so far Michelle from Edge has been very informative and supportive and mentioned that they have consulted with KPMG their accountants and we should appeal all the way as HMRC have no case.

Agreeing to pay in my opinion is an admission of some sort and all the paperwork I have is that the EBT scheme is legit and that I have a loan which has already been taxed and which I may have to pay back. I'd rather pay back the loan and then have it paid to me as salary at some later date when I'm taking time off so I can be taxed at a lower rate. If they had evidence they wouldn't be asking for it, like the amount I have in loans.

Hi there, how is this going. What did you reply back to HMRC with? Are they still investigating you? Would be good to get an update. Am just jumping into this boat so any advice would be good.

[bubble99]

got a discovery letter for the 09/10 tax year today....

[Michael J Perry FCA]

Latest information from hmrc about further actions

Issued on 11/09/2013:

HM Revenue & Customs: Contractor loan schemes

I am happy to deal with any questions by Private Message.


Michael J Perry FCA

[ME08]

A number of people who were in the BN66 scheme, who had not previously been investigated, have been receiving the same notices as you guys for 06/07 and 07/08.

From what I hear, sending out these notices has been quite an effective ploy by HMRC, and a significant number of contractors have been spooked into paying up. Not a bad return for the cost of a few thousand 2nd class stamps!

when did they get these assessments? Isn't the windown closed for 07/08 and 06/07?

[convict]

I've been reading some past cases. One recent FTT refers to the Murray Group Holdings timeline and gives us an insight as to what is going on:
http://www.financeandtaxtribunals.go...23/TC02800.pdf


One particular section of interest starting at the bottom of page 3:

"witness statements would be filed during the early autumn of this year and a
substantive hearing could realistically be expected to be held in the summer of next
year.

Although a case management hearing is being held this month for Murray
Group Holdings there is no indication when it would be possible to list that case for a
substantive hearing in the Upper Tribunal.

Realistically, it is likely to be at least a year before that case can be heard and clearly it will be sometime thereafter before a decision is released, which may be subject to further appeals. With regard to Forde and McHugh it is understood that the Supreme Court is due to hear that case in January 2014, so that realistically a decision in that appeal may be expected by April 2014"