HMRC enquiries for EBT schemes through SANZAR

[Rob79]

Thank you 066,

That's very interesting, that will reduce my figures a lot as I my expenses were mainly mileage which were required to visit the clients premises due to the equipment being large and very bespoke (I'm an engineer). As for proof, well no fuel receipts from 08-09 years but I have a log of miles and bank statements. The proof of travel is in my type of work.

I wish you good luck with claims.

In a previous life I dealt with a very large contractor group for a well known bank. Most of those guys were required to travel to branches, admin centres, etc. We had a massive barney with HMRC over what expenses the bank could reimburse to such peripatetic workers.

In the end we agreed that each worker would have a nominal place of work. Let's say that was 20 road miles from their home. The first 40 miles a day of travel would be regarded as "home to office" travel and if reimbursed, was taxable on the worker. (In fact the bank picked up the cost). Thus a worker going from home to a work place other than the "nominal" but actually closer, may not get any tax deductible expenses. Equally somebody who did a 3 or 6 month assignment that required a 100 mile round trip a day would get relief on 60 miles worth.

The bank and the contractors had to keep meticulous records and these were audited with some rigour by HMRC.

I'll be interested to see what approach HMRC take with retrospective claims which are in most cases going to be broad estimates.

[PaddyPower]

Private Group?

This is my second request and apologies if Im not following the correct procedure. Please can I be added to the private group? Many thanks.

[centurian]

Again, I wouldn't try and claim £50k in mileage for the year, but stick to your guns, it's an allowable expense, incurred 100% in the line of business.

HMRC also have umbrella travel and subsistence allowances in their long-term sights, although they are yet to crack down on it hard. They just don't view it as a business expense, but normal commuting costs couched up to look like a business expense.

Whether they would want to fight two battles at the same time is another matter, especially if different teams are targeting it - so it doesn't hurt to try. But always be prepared for a fight - the lack of HMRC action so far on travelling expenses doesn't automatically mean it's fully safe.

[kizzsmyth]

Hi everyone

I've just joined and would like to join the private group.

Admin folk - please can you grant me PM rights?

I've received notice from HMRC that they are checking my SA Tax Return for year ending 5th April 2013, and have subsequently been asked to supply information relating to participation in a scheme promoted by Garraway Ltd. I'm keen to learn how best to tailor my response.

Cheers all

[del1]

Private Group Access

Hi Admin / Old Kent Road,

I recently registered and need advice on what to do regarding the settlement opportunity letter received from HMRC.
Please could I have access to the Sanzar private group?

Many thanks

[Rob79]

I've been posting on the forum for a few months, mainly on HMRC stuff.

Many people are involved in schemes that have since closed and if I can help at all it's in settling with HMRC on a sensible analysis.

It seems that the Garraway scheme is newer and as such might be more amenable to analysis.

As such I'd be willing to join the group if that is permitted.

Appreciate that I'm not in the scheme and would understand if you felt uncomfortable with my presence. I would not take offence if denied.

[MrO666]

Hi everyone

I've just joined and would like to join the private group.

Admin folk - please can you grant me PM rights?

I've received notice from HMRC that they are checking my SA Tax Return for year ending 5th April 2013, and have subsequently been asked to supply information relating to participation in a scheme promoted by Garraway Ltd. I'm keen to learn how best to tailor my response.

Cheers all

Were you actually an employee of Garraway during the 12-13 tax year ?

With regards to any response......i would advise a high degree of caution. I'd engage a tax specialist to talk to HMRC as your agent. HMRC are all too eager to ask questions which they themselves know they're not legally allowed to ask, or more to the point that you're not legally obliged to answer. However it's very easy to say something you shouldn't and before you know it you're tied up in knots.

Seriously, I wouldn't respond at all, I would ensure any and all communication is via an appointed agent.

[DarnEBTs]

Were you actually an employee of Garraway during the 12-13 tax year ?

With regards to any response......i would advise a high degree of caution. I'd engage a tax specialist to talk to HMRC as your agent. HMRC are all too eager to ask questions which they themselves know they're not legally allowed to ask, or more to the point that you're not legally obliged to answer. However it's very easy to say something you shouldn't and before you know it you're tied up in knots.

Seriously, I wouldn't respond at all, I would ensure any and all communication is via an appointed agent.

I have rec'd the same and to be clear, it is under Section 9A TMA 1970 inquiry. Yes, apparently employed for couple of months of the year with Garraway. CH advised no response at all after having digested the letter and basically ignore it!!! I am not so sure that you can ignore it. Can it be ignored? Or respond thru a professional?

[Rob79]

I have rec'd the same and to be clear, it is under Section 9A TMA 1970 inquiry. Yes, apparently employed for couple of months of the year with Garraway. CH advised no response at all after having digested the letter and basically ignore it!!! I am not so sure that you can ignore it. Can it be ignored? Or respond thru a professional?

NEVER ignore an HMRC letter.

Even if it is a polite request, at least go back and say that you have been advised not to respond or that you don't have the information etc.

NEVER DO NOTHING.

If for no other reason, penalties have a massive reduction for active cooperation.

I can't believe that a professional firm would advise that an HMRC letter should be ignored.

[Old Kent Road]

Private Group

Kizzsmyth, Del1

At the moment you don't have PM rights, you will need to request Admin to grant this or wait until they spot your request....

Once you have PM rights I can send you the joining instructions for the private group.

OKR