HMRC Enquiry letters on Loans from EBT and other schemes

[costo]

Account updated, costo - you can now use the PM system. Thanks cojak

Thanks guys

[jjj]

Years before 08/09

So it is possible and/or likely HMRC are going to send letters out for years before 08/09 e.g. 04/05, 05/06 & 07/8?

[Michael J Perry FCA]

No crystal ball yet!

So it is possible and/or likely HMRC are going to send letters out for years before 08/09 e.g. 04/05, 05/06 & 07/8?

This is why I keep saying that cases cannot be dealt with on a group basis. The tax investigation system does not work that way. All professional advice on this forum is generalised ONLY.

One contractor might have just received a 2008/09 assessment on ONE scheme and never heard from HMRC previously.

Another colleague with the SAME circumstances might have 2004/05, 2005,06, 2006/07 and 2007/08 under investigation by HMRC Specialist Investigations office already with 2010/11 added last year by an HMRC LCO and a 2008/09 assessment as well this month. In addition, this person might have ongoing enquiries with HMRC into ALL THREE schemes they both used.

This is NOT a hypothetical example.

[cojak]

There is no group (reread Michael's post again) Costo is organising a group for Cascade users ONLY.

[Paulie14]

Cascade also

Thanks guys

Hi Costo

Very similar situation to you - haven't been contracting since early 2009, and so this has come as a real bolt from the blue.

I was also with Cascade. If nothing else it's reassuring that they're still around and to read that they are apparently being helpful.

I'll get in touch with them tomorrow - in meantime please feel free to get in touch offline.

Paulie

[Andy123]

High Profile Victims

Just some more reading. Looks like bigger fish than us fallen victim.

Puts into perspective the options of paying up or paying for costly and lengthy representation. Each to decide their own fate I guess.

JPMorgan 'close to £500m UK tax settlement' - Telegraph

EBT Ruling Hits Thousands of Banking Staff

[Michael J Perry FCA]

KNOWLEDGE

Just some more reading. Looks like bigger fish than us fallen victim.

Puts into perspective the options of paying up or paying for costly and lengthy representation. Each to decide their own fate I guess.

JPMorgan 'close to £500m UK tax settlement' - Telegraph

EBT Ruling Hits Thousands of Banking Staff

A little knowledge can be a dangerous thing!

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

It is a bit like looking up health problems on the internet.

If I said anything else, I would be repeating myself.

I will be deluged tomorrow, so please bear with me as I need to prioritise clients that have now engaged my firm to act on their behalf.

Thank you so much to Cojak and Donkey Rhubarb for their support.

[LandRover]

Just some more reading. Looks like bigger fish than us fallen victim.

Puts into perspective the options of paying up or paying for costly and lengthy representation. Each to decide their own fate I guess.

JPMorgan 'close to £500m UK tax settlement' - Telegraph

EBT Ruling Hits Thousands of Banking Staff

However the varied structures undertaken must be considered...there are many cases that have won and can be used in case law too.

UBS won their case for example.
http://www.taxation.co.uk/taxation/A.../singing-blues

And many EBT structures dont use bonuses either...there is no generalisation needed, circumstances need to be looked at individually.

[cojak]

Cojak,

Sorry what post is this? (So may posts!)

Am I effectively left to fend for myself?

The post you quoted.

This is why I keep saying that cases cannot be dealt with on a group basis. The tax investigation system does not work that way. All professional advice on this forum is generalised ONLY.

If you joined a cowboy scheme, they won't be defending you, they'll just push you towards a fee-charging tax specialist.

The only group you can join is one you create yourself (as costo is doing). Because every EBT is different there may need to be several groups created.

[LandRover]

Cool head and look at the facts

The companies who setup the arrangements have been asked to talk to HMRC...the likes of TENON, a major accountancy firm, who set up EBT arrangements are major accountancy specialists, HMRC are trying to scare people and yet first call will be the Companies who set up these arrangements.

http://www.taxjournal.com/tj/article...neration-29972

I dont understand why HMRC feels it is entitled to feel that pre-9th Dec 2010 arrangements fall foul?

If they were registered schemes then why are HMRC applying retrospective action by using "Discovery", when this has been proved by case law to have failed?

http://www.financeandtaxtribunals.go...86/TC01317.pdf

"....All of the tax returns also indicated that the Appellants had implemented a
scheme that had required prior disclosure to HMRC, as a potential “tax avoidance”
scheme, under the Disclosure regime, generally referred to as the DOTAS rules, first
introduced in Finance Act 2004. As required, the tax returns also revealed the
particular scheme’s Scheme Reference Number (“SRN”)...."