HMRC enquiries for EBT schemes through SANZAR

[MrO666]

Many professionals have been calling for a general amnesty for legacy avoidance cases as a pragmatic solution to help clear the enormous backlog.

The trouble, as you say, is that any form of concession would be perceived as rewarding tax avoiders.

HMRC's only answer is to come up with more legislation which rigs the game in their favour.

Sad but true I guess.

I'm sure that 90% of people would agree to pay up if a settlement could be reached, and that would in turn allow HMRC to save an absolute fortune in having to pursue all of these on a case by case basis.

They could even attach a caveat which stated that you agreed to not such schemes in the future, and if you did then you agreed that the original full balance becomes payable, that would stop any such usage dead in it's tracks in my opinion.

Sometimes common sense gets thrown out of the window though............

[lara400]

I have personally given up....just waiting for HMRC to ask for monies....(even though I have appealed) and will take out a massive loan to just pay it....limited company solution for me now...

loan companies are going to have a field day!

[MrO666]

I have personally given up....just waiting for HMRC to ask for monies....(even though I have appealed) and will take out a massive loan to just pay it....limited company solution for me now...

loan companies are going to have a field day!

I assume that you have made sure that what HMRC are asking you for is accurate ?

Very few assessments were anywhere near accurate.

As for waiting for them to ask, remember that interest accrues on a daily basis. If that's your approach you would be better paying the money on account now, at least that stops any further interest.

[DonkeyRhubarb]

Sad but true I guess.

I'm sure that 90% of people would agree to pay up if a settlement could be reached, and that would in turn allow HMRC to save an absolute fortune in having to pursue all of these on a case by case basis.

They could even attach a caveat which stated that you agreed to not such schemes in the future, and if you did then you agreed that the original full balance becomes payable, that would stop any such usage dead in it's tracks in my opinion.

Sometimes common sense gets thrown out of the window though............

Future use of avoidance schemes is virtually dead. HMRC's figures on DOTAS disclosures show very few new schemes in the past couple of years. The GAAR and other measures will kill it off.

No matter what HMRC say about the new legislation being a further deterrent, the truth is it's about tackling the legacy backlog from the past 10 years.

And it's not surprising the backlog is so humongous when it took them 10 years to take Boyle to court. No doubt they will claim Boyle dragged his heels for 10 years.

[flamel]

I too am Ltd and sorting myself out with everything I need before insolvency proceedings commence sometime later this year.
No point in a massive loan as I couldn't pay it back - I've only got another few years of working left so its early retirement for me. As I've said before, effectively working for free was abolished on 1 August 1834.

[lara400]

I assume that you have made sure that what HMRC are asking you for is accurate ?

Very few assessments were anywhere near accurate.

As for waiting for them to ask, remember that interest accrues on a daily basis. If that's your approach you would be better paying the money on account now, at least that stops any further interest.

I pretty much know it is wrong and I could go on and on and fight it but it probably will not get me anywhere...part of me thinks to hang it out and wait for any news from CM but I think deep down we all know its a losing battle...plus, the letter I received was only for 09/10 year; I still have to wait for 10/11 year amount!...I will see if there is some phone number on the letter that hmrc sent and will speak to them about options for payment etc....just want this to be over tbh...

btw - how much is the interest they charge daily?

[flamel]

Hold on before legislation is actually passed!

[DonkeyRhubarb]

btw - how much is the interest they charge daily?

It's 3% per year. It's been this rate for several years. Note, that it is simple interest (not compound).

For 09/10, you are probably looking at about 12% on top of the tax

eg. if tax owed was £20,000, interest would be approx £2,400

[MrO666]

I pretty much know it is wrong and I could go on and on and fight it but it probably will not get me anywhere...part of me thinks to hang it out and wait for any news from CM but I think deep down we all know its a losing battle...plus, the letter I received was only for 09/10 year; I still have to wait for 10/11 year amount!...I will see if there is some phone number on the letter that hmrc sent and will speak to them about options for payment etc....just want this to be over tbh...

btw - how much is the interest they charge daily?

I believe the interest is currently 3%pa.....although I could be wrong.

Like I said, are the figures what HMRC are saying you owe actually correct ? There's no point phoning them up and discussing payment options if the figures are totally wrong......unless they're wrong in your favour that is

[lara400]

I believe the interest is currently 3%pa.....although I could be wrong.

Like I said, are the figures what HMRC are saying you owe actually correct ? There's no point phoning them up and discussing payment options if the figures are totally wrong......unless they're wrong in your favour that is

definitely not wrong in my favour! - what I meant to say is first to call them and discuss how they got to the number and give a slap to the person that botched it up...probably will not happen so will try and see if they can revisit the numbers and come a an accurate one...

The fact is I doubt they even know how they came to it....so my concern is not to shoot myself on the foot and ask for a re-check and they come back with a larger amount!!