HMRC Enquiry letters on Loans from EBT and other schemes

[Chods]

I am receiving a number of PM's and have supplied over 20 appeal letter templates free of charge.

I am happy to help anyone who is suffering genuine financial hardship and has a problem with HMRC.

However, please do not contact me and question my qualifications and advice. Do your due diligence before calling!

Here is an extract from COP8 in answer to a PM I just replied to and it may be worth sharing for those with their heads still firmly in the sand:

That is correct. HMRC have stated that they consider the loans to be UK taxable income and will pursue each case. You must read COP8 and here is an extract if in doubt:

Most taxpayers pay what is due and others make genuine
mistakes. Some, however, deliberately try to pay less than the
correct amount or take advantage of a scheme or device to
reduce or eliminate a liability that might otherwise be due. If we
suspect this, we will investigate thoroughly to establish the facts.
We do not conduct investigations under this Code of Practice with
a criminal prosecution in mind but towards a financial recovery of
any tax, interest and penalties you owe.

So to clarify Michael. Your expecting everyone to be sent a letter regarding previous years. correct?

[Krung Thep]

TRM "correct" appeal template

I’m posting this tentatively as I don’t want to break any rules on confidentiality etc so to the moderators of this forum if there is any doubt over this posting then please delete.

Is there anyone on this forum that used the Talent Resource Management scheme and has contacted a poster on this forum (I shall not name) and received in this person’s words “the correct” appeal and postponement template?

The subtle difference in wording between this template and the template advised by Tax Talk UK concerns me in that it possibly invites HMRC to open up an investigation which then channels one into using the services of the individual concerned.

I’m not entirely convinced that an investigation would be opened up otherwise.

[BlasterBates]

One of my friends was thinking about repaying the loan and get Hector off the back. And then reclaim the money in the proper way by billing the operators for services through a LtdCo and paying CT on it. Don't know if it is viable. And also he is yet to talk to a proper tax advisor / Cascade. Will be interesting to know the outcome. Will update once any details emerge.

This seems to me to be a good way forward. Can´t see how they could chase a paid off loan. Isn´t it also part of their enquiry, i,e, they want to know if you´ve paid it off?

Can´t do any harm to pay it back in the meantime, and see what they do.

[DonkeyRhubarb]

HMRC's handling of tax avoidance schemes is under intense scrutiny by the National Audit Office and Parliament's Public Accounts Committee, and EBT/loan schemes are very high on the list.

They will be expected to aggressively pursue as much of the estimated £2Bn, that has been lost through ebt/loan schemes, as they can.

For this reason, I wouldn't be surprised if they end up taking cases to tribunal which they know have little or no prospect of success.

PS. in other words, HMRC will want to be seen doing everything they can even if it's ultimately futile

[Chods]

The subtle difference in wording between this template and the template advised by Tax Talk UK concerns me in that it possibly invites HMRC to open up an investigation which then channels one into using the services of the individual concerned.

I’m not entirely convinced that an investigation would be opened up otherwise.

If you could back up exactly what this change in wording was then maybe people can make up there own mind. I find it hard to beleive that would be the case.

[Krung Thep]

If you could back up exactly what this change in wording was then maybe people can make up there own mind. I find it hard to beleive that would be the case.

I can't back this up with the wording as I'd be in breach of the terms and conditions of accepting the template. Those that were with TRM and have received this template will know what I mean.

I have to choose my words carefully but the Tax Talk UK template "disagrees that the amount assessed constitutes taxable income" whereas the other "correct" template doesn't explicitly do this.

[convict]

The subtle difference in wording between this template and the template advised by Tax Talk UK concerns me in that it possibly invites HMRC to open up an investigation which then channels one into using the services of the individual concerned.

I’m not entirely convinced that an investigation would be opened up otherwise.

So it's not "free of charge," (as there are terms imposed) and you can't "only wish to deal with the immediate problem and then decide what to do later."?

[richt5a]

TRM and advisor

Greetings All,

New to the thread.

Worked through TRM for about 3 years spanning 4 Tax years.

Received a Special Civil Investigations letter in Tax Year 08/09 for prior years.

Exited TRM. Engaged Gilberts.

Recently received the same 08/09 that everyone else has received.

It goes on!

[LandRover]

Reading material

Even EBT ruling concerning bonuses are deemed okay, so the HMRC appears to be clutching a straws and being pedantic...


Tax appeals likely after bonus rulings - FT.com

UBS wins appeal against HMRC over £100m bonus scheme - New Model Adviser®

It said: ‘In his oral submissions, [HMRC’s lawyer] deployed a kaleidoscopic variety of arguments designed to persuade us, in one way or another, that the FTT’s conclusion on this part of the case, if not all of the reasoning by which the FTT reached it, could and should be upheld. We admire his ingenuity, but are unpersuaded. In our judgment the FTT’s conclusion was in law an impossible one, and there is no proper basis for holding that the scheme fell outside the scope of [the special taxation regime].’

PLC - UBS and Deutsche Bank restricted securities scheme appeals decided by Upper Tribunal (detailed update)

[bluerover]

I’m posting this tentatively as I don’t want to break any rules on confidentiality etc so to the moderators of this forum if there is any doubt over this posting then please delete.

Is there anyone on this forum that used the Talent Resource Management scheme and has contacted a poster on this forum (I shall not name) and received in this person’s words “the correct” appeal and postponement template?

The subtle difference in wording between this template and the template advised by Tax Talk UK concerns me in that it possibly invites HMRC to open up an investigation which then channels one into using the services of the individual concerned.

I’m not entirely convinced that an investigation would be opened up otherwise.

I was with TRM and have seen a template posted on here that was advised by Tax Talk UK. I do not know of any other template to be honest and was looking to use the wording posted from Tax Talk UK for the basis of my appeal...