HMRC enquiries for EBT schemes through SANZAR

[Old Kent Road]

I am in as well now. I received a letter from HMRC yesterday but not personally seen the letter. My wife mentioned that HMRC is looking for £40,000 from me and I dont understand I only stayed for 9 months with Sanzar.

Feeling very disturbed now and already started questioning whether to sell my house or take loan to stay a HMRC/Bank slave.. Big question..

Hope to find a good suggestion from your posts.. Thanks

The amount HMRC are claiming you owe is based on converting your loans to standard income. So this is the value of your loans multiplied by 20%-40% tax, depending on your tax threshold and other income received etc in 08/09. The late payment interest is also 3% per year for 3 years and counting....

Bear in mind some folks' bills have been completely estimated by HMRC and are wrong - an equation of 7 x salary has been touted - so you could be in that boat. It might be worth phoning the tax office that sent the letter and asking whether the bill is based on genuine loan amounts as advised by the scheme.

In any case, the advice is to appeal within 30 days, using one of the methods advised on this thread.

[mukil]

Self Assessment Statement No 6 Sanzar

Someone please advice.

I received a letter on 20/March/2013 dated 11/March/2013 from HMRC and it mentions as "Self Assessment Statement". There was a mention of money to be paid with fine & inerest. After seeing the amount, I almost got a stroke.

Now, when I see the letter, it says Statement No 6. Also, there was no mention of any appealing in that letter. What does this mean? Did I receive 5 more statements before this? I searched completely but last time I received a letter from HMRC was May 2012.

Do I need to ring HMRC to get the break-ups?

Thnaks in advance
Mukil

[mukil]

Break-up letter

The amount HMRC are claiming you owe is based on converting your loans to standard income. So this is the value of your loans multiplied by 20%-40% tax, depending on your tax threshold and other income received etc in 08/09. The late payment interest is also 3% per year for 3 years and counting....

Bear in mind some folks' bills have been completely estimated by HMRC and are wrong - an equation of 7 x salary has been touted - so you could be in that boat. It might be worth phoning the tax office that sent the letter and asking whether the bill is based on genuine loan amounts as advised by the scheme.

In any case, the advice is to appeal within 30 days, using one of the methods advised on this thread.

Thanks Kent for your valuable information. Can you please suggest me whether you dont get letter with breakups explaining the estimations from HMRC? Thanks Mukil

[Old Kent Road]

Thanks Kent for your valuable information. Can you please suggest me whether you dont get letter with breakups explaining the estimations from HMRC? Thanks Mukil

Nobody on this forum has got penalties from hmrc, only new tax owed and interest.

Is this for tax year 08/09? For 08/09 we have all got a re-assessment letter with notes on how to appeal. You may be missing yours.

The letters only really say new income tax due. They dont break down individual loans.

Only your tax office can explain further i think!

[mukil]

Nobody on this forum has got penalties from hmrc, only new tax owed and interest.

Is this for tax year 08/09? For 08/09 we have all got a re-assessment letter with notes on how to appeal. You may be missing yours.

The letters only really say new income tax due. They dont break down individual loans.

Only your tax office can explain further i think!

Apologies, it says assessment for 2008/09 and I need to file self assessment for 2010/11. So, they have included everything and sent as one letter. Following are the list of items but there was no note on how to appeal.

Assessment for tax year 08/09 -
Interest -
Daily Penalty for 10/11 -
6 month late filing penalty for 10/11 -
12 month late filing penalty for 10/11 -
Late Filing Penalty for 11/12 -

[Old Kent Road]

Apologies, it says assessment for 2008/09 and I need to file self assessment for 2010/11. So, they have included everything and sent as one letter. Following are the list of items but there was no note on how to appeal.

Assessment for tax year 08/09 -
Interest -
Daily Penalty for 10/11 -
6 month late filing penalty for 10/11 -
12 month late filing penalty for 10/11 -
Late Filing Penalty for 11/12 -

I can see how that lot could arise to £40,000!

You should have the option to appeal the 08/09 assessment. Many with Sanzar 08/09 have appealed with the help of Cobham Murphy, who can be contacted via email [email protected].

Late filing penalties have not come up on this forum, so you would need to seek advice. I've always had to do a self assessment, and always been on time, so can't advise.

[mukil]

I can see how that lot could arise to £40,000!

You should have the option to appeal the 08/09 assessment. Many with Sanzar 08/09 have appealed with the help of Cobham Murphy, who can be contacted via email [email protected].

Late filing penalties have not come up on this forum, so you would need to seek advice. I've always had to do a self assessment, and always been on time, so can't advise.

Thanks Kent. I will contact them. Other's were only 5K, Sanzar's was 37K but need reassessment. I will contact teh mail id you sent.

[z4thras]

Just had my 2008/2009 assessment letter drop through the door, will be speaking with CM on Tuesday to lodge an appeal.
I can work out how they came to the figure advised, but only was with Sanzar for one month in that tax year.
Can I expect 2009/2010 assessment letter in the near future, i left Sanzar in Nov 2010.

regards.

P.S can i have PM rights

<admin note - PM rights granted />

[Michael J Perry FCA]

London Seminar on HMRC and EBT Schemes

The event is going ahead on Saturday 6 April 11am to 3pm.

You must book before Tuesday morning to attend the seminar and join nearly 60 others that have signed up.

See separate thread on London EBT Seminar.

[GuitarOnion]

FWIW I also received my 08/09 letter today. I always feared this would catch up with me and so it has.

I am currently "repenting at leisure" after paying approximately half of the balance outstanding, and subsequently stumbling on this thread in the search for more information. I guess HMRC's tactic of putting the fear of god up you worked in my case. Having said that I always knew I was on dodgy ground with this scheme and plan to settle in full and move on.

I was with Sanzar for just three months, but at the time was earning good money. Although the letter doesn't give full details of the calculation I can see how the totals would have been arrived at for the time I was with the scheme and what I was earning.