HMRC enquiries for EBT schemes through SANZAR

[Reggie]

OK, that's an assessment, which actually means that HMRC are 100% aware that at present they cannot force you to pay, as they haven't actually proven that you've done anything you shouldn't have.......it's a stake in the ground basically saying 'we're watching you'.

If they were sure, you would have received a tax demand......which is a much scarier letter.

Thanks for the info.

So I'll wait another 5 days then fire off the standard appeal.

Cheers

Reg

[convict]

We need to submit request to to the First-tier Tribunal ourselves – not HMRC, otherwise they can drag it forever and accumulate interest fees, there is no time frame.
HM Revenue & Customs: How to appeal against an HMRC decision - direct tax

Appealing to the First-tier Tribunal

Tax Tribunal guidance

Read this http://www.financeandtaxtribunals.go...69/TC02752.pdf regarding what can happen if you represent yourself and are not fully aware of what you are doing. I'm not saying you can't get it right but this is a warning of how wrong things can go.

Basically this guy took advice, fired his advisor, represented himself, lost and had to pay ~800K. He then got stuffed for HMRC costs because he didn't opt out. My guess is that he did not realise that as his case was on the complex track, he needed to explicitly opt out.

"In these circumstances, whilst we have considerable sympathy for Mr
Phair’s position, we conclude that the Tribunal’s costs jurisdiction is engaged in this
case because the representative was duly notified of the allocation of the appeal to the
complex track but did not opt out of potential liability for costs on behalf of its client"

[vern19]

Read this http://www.financeandtaxtribunals.go...69/TC02752.pdf regarding what can happen if you represent yourself and are not fully aware of what you are doing. I'm not saying you can't get it right but this is a warning of how wrong things can go.

Basically this guy took advice, fired his advisor, represented himself, lost and had to pay ~800K. He then got stuffed for HMRC costs because he didn't opt out. My guess is that he did not realise that as his case was on the complex track, he needed to explicitly opt out.

"In these circumstances, whilst we have considerable sympathy for Mr
Phair’s position, we conclude that the Tribunal’s costs jurisdiction is engaged in this
case because the representative was duly notified of the allocation of the appeal to the
complex track but did not opt out of potential liability for costs on behalf of its client"

I think most people would benefit from professional representation. That does not mean hiring any old accountant touting for business on this site.

[MrO666]

Well I for one won't be doing anything until I have to.

It will be interesting to see if HMRC actually tackle each of these schemes on a 1 by 1 basis.

I know that Cobham are acting in the interests of the 08-09 issue at present, although personally I will want to know how likely any appeal by Cobham is before I agree to pay towards any action by them. There's no point in spending money fighting a case that you have no chance of winning, just to line Cobhams pockets.

I'm not saying that is the case and hopefully it will either never get to court, or there will be a good chance of success, but if it's unlikely then I'd be better off sending that money to Hector instead of lining Cobhams pockets.

[DonkeyRhubarb]

A man who is his own lawyer has a fool for a client

[vern19]

Well I for one won't be doing anything until I have to.

It will be interesting to see if HMRC actually tackle each of these schemes on a 1 by 1 basis.

I know that Cobham are acting in the interests of the 08-09 issue at present, although personally I will want to know how likely any appeal by Cobham is before I agree to pay towards any action by them. There's no point in spending money fighting a case that you have no chance of winning, just to line Cobhams pockets.

I'm not saying that is the case and hopefully it will either never get to court, or there will be a good chance of success, but if it's unlikely then I'd be better off sending that money to Hector instead of lining Cobhams pockets.

If you're going alone then the best strategy would be to keep stonewalling and asking them to legally justify their demands.

[convict]

I think most people would benefit from professional representation. That does not mean hiring any old accountant touting for business on this site.

I think there's two parts to this:

1. Dealing with HMRC and the processes involved. You can either deal with this yourself or get the services of someone familiar with the process. If you are prepared to do your homework you can get to the tribunal stage without dropping yourself in the $hit. This is a personal choice to be made and is down to the individual involved.

2. Convincing a tribunal/Judge that HMRC are wrong. This is where (and given the stakes) a tax Barrister/Lawyer is essential in my opinion and going in cack-handed will hurt bigtime.

Much like if your PC fails you may fix it yourself, get someone you know to do it, pay PC world (ha ha) or some other computer repair service. If it then turns out your hard disk has failed and you've got valuable/important data on it, you'll probably look at specialist (read expensive) help in the form of a data recovery specialist and you probably won't open the thing up yourself to swap the motor out.

[DonkeyRhubarb]

The vast majority of people who've received assessments won't need to do anything other than appeal. There are far too many people caught up in this for HMRC to deal with it on an individual basis. They'll have a hard enough time just coping with the large number of different promoters.

If it does eventually go to tribunal then there will be a handful of test/lead cases.

This must be causing HMRC the mother of all headaches.

[z4thras]

If you're going alone then the best strategy would be to keep stonewalling and asking them to legally justify their demands.

Just had 09/10 and 10/11 assesmenst land on the door mat yeserday, same assesment as before Miss Sloop beliving Loans are income and asking for Tax.
I had Appeal loged with CM for the 08/09 and aftre emailing Contractorhelp desk I have had no responce, has any one else contacted contractor helpdesk for 09/10 or 10/11

cheers

[vern19]

Just had 09/10 and 10/11 assesmenst land on the door mat yeserday, same assesment as before Miss Sloop beliving Loans are income and asking for Tax.
I had Appeal loged with CM for the 08/09 and aftre emailing Contractorhelp desk I have had no responce, has any one else contacted contractor helpdesk for 09/10 or 10/11

cheers

Ouch... 2 discovery letters in 1 day sounds painful.