HMRC Enquiry letters on Loans from EBT and other schemes

[stt106]

Take a step back. Are you agreeing that you owe tax (i.e. the amount is taxable income) and their calculation is wrong? Or are you still of the opinion that there is no taxable income and the amount should be zero?

The position you take for any appeal letter will be based on the above. As for the calculation, it's a guesstimate and is roughly aligned to the quality of paper it is written on. It all comes down to whether HMRC have the loan info from the provider.

If you want to know your own position, take what you have been paid as salary. Add the total loan amount for the tax year to that amount. Put that total amount into a tax calculator such as Salary Calculator 2013, UK Tax Calculator 2013 , Listentotaxman PAYE income tax calculator, payslip, how much tax will i pay, national insurance, tax free allowances student loan repayment..

Take what you have already paid in tax/ni (as per your latest letter) away from the deductions figure shown on the website to get a realistic exposure figure.

Do you guys agree the tax amount calculated by HMRC (assuming they were taxable income for now!)? How on earth do I verify their calculation? They even said it's an estimated amount but I don't trust them at all!

[convict]

Do you guys agree the tax amount calculated by HMRC (assuming they were taxable income for now!)? How on earth do I verify their calculation? They even said it's an estimated amount but I don't trust them at all!

Did you not read my note? You can get the loan amounts you were paid from your bank statements.

If you want to know your own position, take what you have been paid as salary. Add the total loan amount for the tax year to that amount. Put that total amount into a tax calculator such as Salary Calculator 2013, UK Tax Calculator 2013 , Listentotaxman PAYE income tax calculator, payslip, how much tax will i pay, national insurance, tax free allowances student loan repayment..

Take what you have already paid in tax/ni (as per your latest letter) away from the deductions figure shown on the website to get a realistic exposure figure.

[stt106]

Did you not read my note? You can get the loan amounts you were paid from your bank statements.

So if we appeal for a postpone, HMRC will still start charging interest (from beginning of the relevant tax year)?

[cojak]

So if we appeal for a postpone, HMRC will still start charging interest (from beginning of the relevant tax year)?

Stop panicking and start reading. Look at the CTD post above.

[stt106]

Stop panicking and start reading. Look at the CTD post above.

Just wonder why nobody who has appealed wants to share what hmrc replied back! Surely someone must have got a response back by now given many people appealed back in March/April.

Hope it means hmrc dropped the case and those who appealed don't need to come back here anymore....

[vern19]

Just wonder why nobody who has appealed wants to share what hmrc replied back! Surely someone must have got a response back by now given many people appealed back in March/April.

Hope it means hmrc dropped the case and those who appealed don't need to come back here anymore....

I appealed in March, HMRC accepted the appeal in April and I am still waiting to find out HMRC's next move. They are waiting for results of ongoing Tribunals.

[stt106]

I appealed in March, HMRC accepted the appeal in April and I am still waiting to find out HMRC's next move. They are waiting for results of ongoing Tribunals.

Do you mind sharing what they said and what appeal template letter you used? Many thanks.

[vern19]

Do you mind sharing what they said and what appeal template letter you used? Many thanks.

There are many template letter examples on this forum. You need to read through the threads and and familiarize yourself with whats going on here. HMRC are not going to forget about this so expect to be paying them money at some time in the future. I don't want to sound negative because there is a chance that ongoing Tribunals will go in the taxpayer's favour.

It may be better for you to get professional representation now

[convict]

There are many template letter examples on this forum. You need to read through the threads and and familiarize yourself with whats going on here. HMRC are not going to forget about this so expect to be paying them money at some time in the future. I don't want to sound negative because there is a chance that ongoing Tribunals will go in the taxpayer's favour.

It may be better for you to get professional representation now

From what I have heard and can piece together.

For my scheme at least HMRC are attacking my use based on at least two of points
1. Transfer of assets (TAA)/ITA 2007 section 720-739. Basically their argument is that my employment contract was an asset.

2. Loans are not loans, they are income.

Check your letter for any "technical" blurb/Q&A

There was an FTT hearing in May 2013 (I don't know which scheme or any details). These arguments would have been used then. There's probably a lot of commonality regarding how the schemes are engineered so these arguments probably apply to multiple schemes. Other issues such as scheme implementations will (by their nature) be unique to each scheme, but implementation is immaterial if it's a fundamental 'design' failure.

So once the judgement to the May case appears I think we'll be somewhat clearer on where things go. We'll either have HMRC declaring victory and shouting from the rooftops with more propaganda or they'll go quiet and then appeal to the UTT. Anyone in a scheme where TAA/S62 applies will be affected by the FTT ruling. Either way expect barrister fees and a long wait (>12 mths)

PS. No ETA for the FTT decision.

[AngryMan]

Ask a silly question...

In order to prove these are loans (which they are!) couldn't I just start paying them back?