HMRC enquiries for EBT schemes through SANZAR

[MrO666]

Because the actual figure was irrelevant? just that a open enquiry was needed for these measures... or am I being cynical?

I suspect there may be some merit in what you're saying, but it would still make no sense for HMRC to issue incorrect assessments if they actually had the correct figures.

All they've managed to achieve is add yet another layer of hassle for themselves, as if people are forced to pay, then nobody is going to pay an assessment that's incorrect in the favour of HMRC (which they more or less all seem to be), so they will also need to deal with 1000's of assessment corrections too.

[jbryce]

WTF is 'Contractor avoidance'?

In today's HMRC note it says 43,000 taxpayers will be impacted.

If you total up the number of users in the table on Page 7 of the consultation it comes to 42,800.

So that table pretty much tells us who is on the hit list.

Employee Benefit Trusts (EBTs)...........6,300
Contractor avoidance........................16,000
Partnership losses.............................12,000
Stamp Duty Land Tax........................8,500
TOTAL..........................................42,800

WTF is 'Contractor avoidance'?

[creativity]

WTF is 'Contractor avoidance'?

What's the 'contractor avoidance'?
Are they schemes?

[MrO666]

What's the 'contractor avoidance'?
Are they schemes?

I would imagine so.

Anything that HMRC have issued DA's for I guess.

[z4thras]

I would imagine so.

Anything that HMRC have issued DA's for I guess.

so when do Google, starbucks and amazon get their DA's?

[DeadDOTAS]

Practical implications of today's budget

So, with the Budget cat now out of the sack, what is your advice assuming I have two currently outstanding/ appealed DAs totalling at sizeable amount. I haven't got the cash in the bank to cover them - and likely won't have the cash by summer this year either.

Would I need to:
1) Move ask quickly as possible off DOTAS and become a limited company contractor - ideally before beginning of the new tax year (with the awareness that there may be more DAs coming through the letter box)?
Or do I need to find a "proper" perm job, i.e. having to give up being a freelancer altogether?

2) Start scrimping and scraping to collect the money on the side if and when the acceleration notes come through the door? But there won't be enough by summer even to paying just 25% of it off.

3) Be prepared to fight and initiate personal bankruptcy proceedings?

I.e. could they push me into personal bankruptcy for debt that I do not owe. Baring in mind if they did that, and I won the case later, I would get the money back + interest, and would consider suing for compensation, distress caused, loss of property/equity and loss of future income (I wouldn't be able to get any more work in my sector in case of a personal bankruptcy)? And breach of human rights as other commentators/law firms have commented already.


4) Expect that they will only take what's in the bank account and leave £5,000 - which doesn't leave them too much to take anyway.

5) Do nothing and assume that this will all blow over and will be challenged further before it makes it's way into the Finance bill?

What other practical solutions are there? What are others thoughts?
Many thanks for your help - any comments/feedback are much appreciated.

Brilliant forum and comments/thoughts btw. Helps knowing I'm not on my own in the deep end...

[meanttobeworking]

Firstly, genuine condolences to those of you for whom this will have a potentially life changing impact. I am in the "fortunate" position of only being in an EBT scheme (not Sanzar) for a few months, in the 09/10 tax year, with a total loan amount of approximately £30,000, so I believe my exposure is limited to a manageable figure. However I am about to take on a new mortgage and will need every spare penny for stamp duty etc. Would any of you more informed than I give me a confirmation that I am likely to be affected by the impending demands for payment (I received and responded to an opening of enquiry letter and request for details of loan amounts letter in December 2012), and help me with a rough calculation on how much is owed? Is it just income tax on 30,000 plus interest, or are there likely to be penalties too?

[MrO666]

Firstly, genuine condolences to those of you for whom this will have a potentially life changing impact. I am in the "fortunate" position of only being in an EBT scheme (not Sanzar) for a few months, in the 09/10 tax year, with a total loan amount of approximately £30,000, so I believe my exposure is limited to a manageable figure. However I am about to take on a new mortgage and will need every spare penny for stamp duty etc. Would any of you more informed than I give me a confirmation that I am likely to be affected by the impending demands for payment (I received and responded to an opening of enquiry letter and request for details of loan amounts letter in December 2012), and help me with a rough calculation on how much is owed? Is it just income tax on 30,000 plus interest, or are there likely to be penalties too?

It should just be pure income tax plus interest, there wouldn't be any penalties providing you paid within the defined timescale.

As you'd only be on the hook a for a few grand, I'd just arrange a payment plan over 12-18 months.

Still, this wouldn't become payable until October 2014 at the earliest, assuming of course it all gets rubber stamped.

[DeadDOTAS]

20,000 outstanding tribunal cases in 2012 + 65,000 now?

HMRC: taxman embroiled in 20,000 tribunal cases 'costing billions' - Telegraph


Above link suggests HMRC had 20,000 outstanding tribunal cases in 2012. Assuming not that many got solved and more added in the meantime, add 65,000 of what has been suggested and assuming most will fight HMRC, what are the chances that our cases make it to tribunal?

[meanttobeworking]

Thanks very much for your reply