HMRC enquiries for EBT schemes through SANZAR

[Unix95]

Dear admins,

Sorry for asking again, but could you please upgrade my account so that I can PM a request to join the private group?

I was with Sanzar for the 09/10 tax period.

Thanks

[administrator]

Dear admins,

Sorry for asking again, but could you please upgrade my account so that I can PM a request to join the private group?

I was with Sanzar for the 09/10 tax period.

Thanks

Hi - you already have access to the PM system, give it a try!

[jbryce]

Pre APN letters

I've just received a 'your APN is on its way' letter from HMRC.

[Penguin]

Got my first actual APN

I've just received a 'your APN is on its way' letter from HMRC.

I got my actual APN for 2008-9 on Friday, exactly a week after my "your APN is on its way"' letter from HMRC. I fully expect the 2009-10 one will be there when I get home tonight.

Penguin

[MercladUK]

I got my actual APN for 2008-9 on Friday, exactly a week after my "your APN is on its way"' letter from HMRC. I fully expect the 2009-10 one will be there when I get home tonight.

Penguin

Got both mine Friday 08-09 & 09-10 a week after my letter saying they will be with me in 1-8 weeks.

does yours have the NIC comment on the last page?

[Penguin]

Got both mine Friday 08-09 & 09-10 a week after my letter saying they will be with me in 1-8 weeks.

does yours have the NIC comment on the last page?

Can't see anything about NIC - just had a look, but at work so will have another look later.

[StrengthInNumbers]

What's the comment about NIC?

[MercladUK]

The Last page of my APN states

Information about National Insurance Contributions

The amount of the accelerated payment does not include any additional National Insurance Contributions that may still be due from you

that's it....

[tax is taxing]

APN

My PERSONAL opinion.

If you can pay the APN, then pay it.

If you have to agree terms to do this, then do so. (I've seen several now and instalments over 12/18/24 months appear to be on offer - depending on circumstances.)

If you go the above route, contact HMRC asap. If you don't want to do this yourself, get an intermediary to do it, preferably qualified. (PM if you wish - I can deal with a limited number of pro bono cases).

Join the Sanzar group, but NOT for the JR against the APN (see below*).

Paying the APN is not an admission of "guilt" nor settling but it will prevent a penalty arising, which a JR action may not.

The group will keep you up to date and provide support and if it comes to litigation will spread your cost.

*I am not a believer in the JR process. The best that will be achieved is a delay in payment. If you get 12 months I'd be surprised, more likely 6 months. Even if this JR is successful the rules will be changed pretty quickly once the new Government arrives.

Do the numbers. If you owe £7,500 and the JR fails after a year you owe £1,125 in penalties. (see other threads for whether penalty applies even when the JR is running - best guess at the moment is "yes").

That debt has also attracted a further £225 in interest. Total addition to your debt £1,350.

Pay the APN in say 12 instalments from now. Reduces the interest charge by around £120 and probably removes penalty (another issue that is uncertain so this is a best guess). Net £105, against possible £1,350.

You may have additional interest on borrowing of course but rates are currently low.

You may also get all/some of the £7,500 back.

DO NOT SETTLE.

Pay the APN, join the group.

Like I say a personal opinion.

Should JR go against HMRC, the APNs have to be withdrawn. Law need be changed and another form of demand may be issued. This is likely to take between 12 - 18 months. I am certain, that will also be challenged.

I think, if JR is successful then, the tax payer will have some other form of demand in 2017.

If JR is unsuccessful, then the tax payer would've accrued 5% penalty (JR hearing is due this summer).

But then, if the Liability is as little as £7500, it makes financial and business sense to settle the APN.

This is my personal view.

[webberg]

Should JR go against HMRC, the APNs have to be withdrawn. Law need be changed and another form of demand may be issued. This is likely to take between 12 - 18 months. I am certain, that will also be challenged.

I think, if JR is successful then, the tax payer will have some other form of demand in 2017.

If JR is unsuccessful, then the tax payer would've accrued 5% penalty (JR hearing is due this summer).

But then, if the Liability is as little as £7500, it makes financial and business sense to settle the APN.

This is my personal view.

All the parties say that a Budget will be delivered in June. My guess is that the first JR result will be available by then and if by some mischance the Judge doesn't want a peerage eventually and says "this is wrong" then "correcting" rules will be in by October and payment in 2015 is certain.

Ed Balls said yesterday that he expects his mansion tax to be collecting by March 2016. I see no reason to think APN will be any different.