HMRC Enquiry letters on Loans from EBT and other schemes

[LandRover]

Well you have unless Big Group is now free, otherwise I would be paying money needlessly? If bankruptcy is the inevitable outcome not sure what benefits there could be, but please feel free to correct me if I am wrong?

You are not alone. Plenty facing similar circumstances to yourself. Big Group offers us a great source of advice and help. We are campaigning too. A lot of help can be gained in BG, but it's a personal choice.

[regron]

Ok so new to posting here. I used the AML scheme (DOTAS registered) and then another scheme with Helix Projects (not DOTAS registered) over 5 years. My wife used the Helix scheme for 1 year (over 2 tax years). We have obviously had the compliance letters, etc. and responded to all of them, but we received these quite late, 1st one just over a year ago so essentially when I was already in too deep.

Obviously not being the brightest spark, otherwise I wouldn't have ever used this schemes and for so long, I really am not up to speed with everything that is going on, I knew nothing about the LC19 or CLS02 let alone CLS01 until I found this forum as haven't been notified of these by HMRC.

So the situation as I see it is that I have anything up to £500k loans, my wife £50k. Seems sensible that we arrange to settle for my wife asap as we have funds to cover this, but for me I have absolutely no way of paying the impending tax bill whether it is via CLS02 or LC19.

Read up on Big Group, etc. but if I am essentially facing bankruptcy is there any point in joining, when the reality is what I need is bankruptcy advice and support and not tax advise and support? I don't see much on here about this, but it seems obvious to me that this is a likely outcome for a lot us

Believe me, there are many (including myself) in BG who are in the exact same position ! Agree, you won't get BR advice, but there are some or us who have already been in contact with recommended BR specialist.

[stonehenge]

Personally, I'm not convinced BG will be able to achieve anything tangible.

However, if you're going to go bankrupt anyway, any money you spend fighting is less money HMRC will get in the end.

[burnside]

Personally, I'm not convinced BG will be able to achieve anything tangible.

However, if you're going to go bankrupt anyway, any money you spend fighting is less money HMRC will get in the end.

True but the more money we can put into my wife's savings then the more we should have post bankruptcy, including any potential purchase of equity in our family home to avoid losing it...if that is even possible

[stonehenge]

True but the more money we can put into my wife's savings then the more we should have post bankruptcy, including any potential purchase of equity in our family home to avoid losing it...if that is even possible

Your wife could buy your half of the equity in the house from the bankruptcy trustees, to save you having to sell the property.

Did you get APNs for the DOTAS years? Have you paid those?

Are all your years open? As in, did HMRC open an enquiry, or issue a notice of assessment, for all of them?

[Delendog]

Your wife could buy your half of the equity in the house from the bankruptcy trustees, to save you having to sell the property.

Did you get APNs for the DOTAS years? Have you paid those?

Are all your years open? As in, did HMRC open an enquiry, or issue a notice of assessment, for all of them?

Remember HMRC have stated that bankruptcy is a last resort. They could end up with zero as others will also be due a share, mortgage, loan trustee etc etc

[burnside]

Your wife could buy your half of the equity in the house from the bankruptcy trustees, to save you having to sell the property.

Did you get APNs for the DOTAS years? Have you paid those?

Are all your years open? As in, did HMRC open an enquiry, or issue a notice of assessment, for all of them?

That's the hope, although not sure how this stands with us being joint tenants as opposed to tenants in common, which I understand they could claim all of the equity and not half?

So re the DOTAS scheme with AML I was only with them for 1 year and yes I received and paid an APN I received on that. I then moved to a non-DOTAS scheme with Helix in 2011, but the 1st year under this scheme that was investigated was 12/13. So does that mean I effectively have 1 closed year in 2011/2012 that HMRC did not open an enquiry against, and would I have to declare that or have I got away with it?

[LandRover]

That's the hope, although not sure how this stands with us being joint tenants as opposed to tenants in common, which I understand they could claim all of the equity and not half?

So re the DOTAS scheme with AML I was only with them for 1 year and yes I received and paid an APN I received on that. I then moved to a non-DOTAS scheme with Helix in 2011, but the 1st year under this scheme that was investigated was 12/13. So does that mean I effectively have 1 closed year in 2011/2012 that HMRC did not open an enquiry against, and would I have to declare that or have I got away with it?

Tenants in common is simply unequal ownership, not 50-50. So don't understand where you come to believe HMRC can take "all of it". When a person goes bankrupt they can only request the % beneficial Interest(house value - mortgage) that is the bankruptcies.

https://www.land-registry-documents....ship-tennants/

Your partner can purchase the beneficial interest from the Insolvency Practitioner after a Independent valuation report is obtained.

[burnside]

Tenants in common is simply unequal ownership, not 50-50. So don't understand where you come to believe HMRC can take "all of it". When a person goes bankrupt they can only request the % beneficial Interest(house value - mortgage) that is the bankruptcies.

https://www.land-registry-documents....ship-tennants/

Your partner can purchase the beneficial interest from the Insolvency Practitioner after a Independent valuation report is obtained.

That was also my impression, until I read this thread

https://forums.contractoruk.com/hmrc...pay-apn-3.html

In particular this link

https://www.samconveyancing.co.uk/ne...-bankrupt-4386

[Finalwhistle]

next steps?

I hope it all works out for your burnside.
do you know what course of action you're planning on taking i.e. CLSO etc?