HMRC Enquiries for EBT Loans from Cascade London

[costo]

HMRC

If you can see it on the portal then it will be on its way to you - some came last week and have been coming each day. Suggest you get in contact with Cascade ASP - we have formed a small group of people effected PM me for more info.

[OCR]

HMRC Enquiries for EBT loans from Cascade

I too have received a 2008/09 Notice of Assessment. I have not yet spoken with Cascade but with Hamilton Trust. HT will be appealing but I am still unsure whether to pay the tax due so as to avoid paying any additional tax. Will that be seen as an admission to guilt and will HMRC then expect me to pay additional years ? I suspect these notices will be sent for the following years too ? How long will the appeal take ? Does our Professional Indemnity cover us for these types of appeals / tax liability ? What steps do we need take ?

[costo]

I too have received a 2008/09 Notice of Assessment. I have not yet spoken with Cascade but with Hamilton Trust. HT will be appealing but I am still unsure whether to pay the tax due so as to avoid paying any additional tax. Will that be seen as an admission to guilt and will HMRC then expect me to pay additional years ? I suspect these notices will be sent for the following years too ? How long will the appeal take ? Does our Professional Indemnity cover us for these types of appeals / tax liability ? What steps do we need take ?

Hi OCR - yes pretty much everyone from Cascade is in the same boat so the good news is you are not alone and Cascade/Penfolds are supporting us - if you have not spoken to Cascade then please do, they will put you in touch with the accountant who are preparing a appeal (which to be fair does appear to be quite a good one).

You have to make your own mind up on how to proceed - there are only 2 options

1) Pay up and hope they go away
2) Appeal and live to fight another day (and possibly get a hefty fine for not agreeing to their terms).

It depends how long you were with them and the sort of money at your disposal and what you want to do. There is no clear cut answer on this - I definitely am not planning on just paying up and will appeal as I still believe that at the time this was perfectly legal and HMRC and being bullies....

We have formed a small group of Cascade effected contractors so PM me if you would like to join.

[Cous Cous]

I'm in the same boat

I received the same tax demand for payment within one month based upon an estimate of the additional taxable income. I have contacted Cascade and am awaiting their response...

[stl004]

Can the mods allow me permission for PM.

Thanks

[uotinam]

Same - Letter Received

Have emailed Cascade Today - If this is the correct approach regarding Letter relating to "penfolds"

Enjoy.
U.

[OCR]

HMRC Enquiries for EBT Loans fro Cascade London

Thank you so much for your feedback. Interested in sharing information but new to this portal - what does PM mean and how do I go about doing this ?

[castax]

Hello moderators,

Please set me up for PM. Thanks.

[EveryMoveCalculated]

Joining the boat

Hi all,

Got my letter today via email forwarded by an accountant I haven't used for a while. Odd.
I used Cascade and Penfolds for 7 months during 2008-2009, and will be speaking to them in the morning.

If I see anything different to the posts already here I'll let you know.

[varunksingh]

PM means ability to send Private Message to other posters.

I don't think any one should pay at all. Just think about it. We all were working as EMPLOYEES of penfolds in 08-09. They issued us P11D and P60. Who BY LAW is responsible for any taxes? Employee or Employer? It is Employer!

HMRC just cannot class loans as income because they BELIEVE so (word used in the letter by HMRC). They will have to thrash this out with Penfolds. Can anyone please point me to a case where HMRC has taken an EMPLOYEE to tribunal because HMRC do not agree with what EMPLOYER said on P11D and P60? I was not able to find any such cases - Please help me find as it is important. All cases for EBTs I have seen are between EBT and HMRC. Thus I think HMRC are wrong in first place to issue these letters to us.

So first HMRC has to start a case against Penfolds and then win it at Lower Tribunal, Higher Tribunal and then supreme court (assuming Penfolds or HMRC who so ever lose appeals). This will be a long drawn process. So the question arise who has a better chance to win. Google for dextra, Sempra and Rangers cases. Also try and google other EBT cases where HMRC has won or EBT has settled. I have only found EBTs settling where they were using Bonues (like JP Morgan). Non using loans has lost against HMRC. Why because it was legal under that time's law. If not so, then why did HMRC change the law in Dec 2010? It is like change speed limit to 60mile on motorway today and fine everyone for over speeding yesterday!

Another problem and why no one should pay - Even if you pay, you are still responsible for Penfold loans and you will have to pay them back when Penfold asks. We all signed a formal legal loan agreement and are bound by that. So how can HMRC ask us to pay without settling with Penfolds and Why would penfolds take such a big loss? Penfolds have LOANED us money and based on what it should lose its right to ask for that money back? Cannot understand what HMRC are saying

Penfolds and us have done nothing wrong. Scheme was registered under DOTAS (as I can see from my tax return for 09-10 which was filed by KS). My feeling is HMRC is under pressure from Parliament like all other government departments to have more revenue and less cost and thus they are trying everything. Now I am not saying they have no chance of success but what I am saying is that we also have a chance - Based on FACTs (old cases) probably we have a stronger case.

Please rip this post apart and correct me where I am wrong. After all the idea of this forum is to discuss and get prepared.

best of luck to all