HMRC enquiries for EBT schemes through SANZAR

[eek]

HMRC enquiries for EBT schemes through SANZAR

Maybe but HMRC have to play by their own rules and if an assessment has already been raised and will therefore presumably be payable I think it wouldn't hurt to at least approach them about it

My concern would be that hmrc will happily take it to tribunal after tribunal until they won for pure vendictiveness

[LisaContractorUmbrella]

My concern would be that hmrc will happily take it to tribunal after tribunal until they won for pure vendictiveness

If the tax debt was going to be settled what would be the point - my feeling is that this could only be used when the debt was acknowledged and paid. A settlement with HMRC doesn't just have to go one way. Whilst I agree that they can appear vindictive I think most of the court cases they instigate are designed to set a precedent - the tax debt itself might be small but if the outcome will establish a principal they'll go for it

[jbryce]

It's a tricky one, isn't it. There are arguments both ways.

However, since you are trying to defend your position of being a regular taxpayer despite using a vehicle that Hector believes to be a sham tax avoidance one, pressing for additional tax relief on the grounds you weren't allowed to claim it from the sham company seems a little like waving a large red flag...

I don't think any more red flags need to be waved. My accountant rekons you can claim them - as he pretty qualified I would tend to take his opinion.

[Safe]

This is what i found it from MD (Paul Mihailovi) of Sanzar in 2007.

See message 22 from MD of Sanzar in 2007.

http://forums.contractoruk.com/accou...company-3.html

[PC1976]

So.. I decided to call them

Appreciate your thoughts / comments on this.

Called the settlement helpline.. Just to get a figure (funny how fast they answer the phone - see how long it rings out when you're after a rebate!). They said that the figure on the letter they sent me a while back stating what tax they thought was due was estimated.

"in most Sanzar cases we have just seen amount claimed as earnings and multiplied it by 5 or 7 to tell you what we think you owe in tax." WTF, So, whats the point of submitting a P11D which shows what ammount have been taken in loans if they are not going to use that figure?

Further more they requested copies of all bank statements to demonstrate earnings as they said P11D can not be trusted.

So I said I'd like to purchase tax certs to halt interest. They said as it's estimated amount they cant give me a correct amount to buy on certs until I "close my challenge on the amount" which then means my tax is due.. Err no thanks.

So i think I'm going to get the bank statements myself, calc the tax due, add the interest due and buy certs.

EVEN MORE WORRYING - The person also said that buying certs DOES NOT hold the interest on the amoutn owed.. again, WTF. So there are clearly some training issues in that department, watch out. Quite how they can still charge me interest when they have the money is very much beyond me.

[DonkeyRhubarb]

So i think I'm going to get the bank statements myself, calc the tax due, add the interest due and buy certs.

EVEN MORE WORRYING - The person also said that buying certs DOES NOT hold the interest on the amoutn owed.. again, WTF. So there are clearly some training issues in that department, watch out. Quite how they can still charge me interest when they have the money is very much beyond me.

Remember you only need to purchase a CTD to cover the tax, not the interest already accrued. This is because HMRC only charge simple interest, not compound.

Eg.

Tax (potentially) due on the loans is £50k. Interest accrued to date is £10k.

You only need to take out a CTD for £50k to prevent any further interest.

HMRC have confirmed that CTDs can be used to pay APNs should you ever receive them.

[PC1976]

Thanks for that. Assuming I just purchase them online will it automatically be aligned against outstanding (potentially) owed tax? Sorry I am a bit useless in these matter hence where I am.

They also said if I wanted to send them all of my statements from
08 - current they would work out what tax I need to pay on other schemes. Thanks that's good of them. Also went to great lengths to explain they will take all to court and have good record of winning blah blah

Cheers

[DonkeyRhubarb]

Thanks for that. Assuming I just purchase them online will it automatically be aligned against outstanding (potentially) owed tax? Sorry I am a bit useless in these matter hence where I am.

I wasn't aware that you could purchase CTDs on-line.

They can be used to pay any tax bill. They are not tied to any particular liability.

[PC1976]

Ok no probs. was my assumption and prob incorrect. Ta

[PC1976]

So the interest is charged as your account is perceived to be in debt hence when you put money in there that stops future interest?

So I still don't think I quite understand how lets say if I owed 20k from 2008 the it's 20k + 5 years interest. How come I don't need CTDs to cover the potential amount overall. Thanks