HMRC enquiries for EBT schemes through SANZAR

[DonkeyRhubarb]

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

There's nothing stopping you taking out a CTD to cover the 5 years interest as well. It's just not necessary. And you'd be better off putting that money somewhere else because CTDs earn little or no interest. An example might help.

£20k tax from 2008/9. Interest will currently be about 15% ie. £3k. Total liability = £23k.

You take out a CTD for £23k.

In 5 years time, you use it pay your tax bill. The CTD stops further interest so the total liability will still be £23k.

However, if you'd put the £3k in a savings account, or invested it, you could have earned 5 years interest on the money.

[PC1976]

Perfect. Thanks for taking time to explain too

[IngloriousContractor]

Got the Settlement Opportunity (SO) letter

Old Kent Road
Please add me to the private group for ex-sanzar employees. I was working through Sanzar 09 to 11. I have just joined this forum.


Seems hmrc are going only after the companies that were used by a large number of contractors like Sanzar, etc.
I had a friend who used an EBT but wasn't thru sanzar. He went thru a small company who have also now closed shop. He hasn't received any HMRC letter ever. I don't know how his EBT worked and whether he had declared an SRN on his return.

Could anyone who has done it share their experience please?

What does taking the SO entail?
Do you have to send your bank statements to HMRC for them to calculate your tax liability or would they take your word for it?

I would be wary about sending bank statements as God knows what they will question about any transactions on my statement.

Is it safe to give HMRC the figures to calculate liability or could that be used against us?

Should we expect these DAs, APNs, SOs to come for years after 2011 too?

Please include me in the private group and please count me in to pool for any professional tax advice, etc
Thanks

[MrO666]

Old Kent Road
Please add me to the private group for ex-sanzar employees. I was working through Sanzar 09 to 11. I have just joined this forum.


Seems hmrc are going only after the companies that were used by a large number of contractors like Sanzar, etc.
I had a friend who used an EBT but wasn't thru sanzar. He went thru a small company who have also now closed shop. He hasn't received any HMRC letter ever. I don't know how his EBT worked and whether he had declared an SRN on his return.

Could anyone who has done it share their experience please?

What does taking the SO entail?
Do you have to send your bank statements to HMRC for them to calculate your tax liability or would they take your word for it?

I would be wary about sending bank statements as God knows what they will question about any transactions on my statement.

Is it safe to give HMRC the figures to calculate liability or could that be used against us?

Should we expect these DAs, APNs, SOs to come for years after 2011 too?

Please include me in the private group and please count me in to pool for any professional tax advice, etc
Thanks

As for anything you may have been doing post 2011, I wouldn't concern yourself with any of that at the moment, and I'd also be careful about what you say on these forums too, as it's common knowledge that they're monitored by HMRC

With regards to the SO, if you want them to formally determine the appeal and confirm that it's now closed, then from what I understand you will need to show HMRC that what you're paying is 'broadly' correct. Most firms using EBT's back then issued loan statements to employees at the end of the tax year, by showing that to HMRC that would certainly be sufficient evidence. Once you and HMRC agree on the figures, then once you've paid in full your case will be closed (and not before you've paid in full).

This is how I understand it, yet maybe it's possible that if you just paid the tax they've asked for, then they will consider it finalised. Ask them the question straight, just ask them to confirm that if you pay the £xx they've asked for, then is my case formally determined and closed.

As for is it safe, well you would assume that providing you're going to settle the bill, then HMRC have no other axe to grind. So many people think HMRC are just being vindictive....they're not. They believe you owe X in tax, and that's what they want, nothing more or less.....it's nothing personal remember.

[Boobetty]

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

This appears to me to be at odds with the D03 on which we are signing stating the contents of the form are correct to our knowledge and belief, etc. There is no mention of documentary evidence in the settlement letter, and besides, I understand that the settlement letter was sent to 10,000 taxpayers? HMRC have neither the resource nor the inclination to plough through 10,000+ years worth of bank statements.

I think the 'calculate your liabilities yourself and buy a CTD' is a wise course of action. Actually I think it is the only viable course of action.

[nonResident]

Group

Hi All,

I am registered with CH and CM due to being a member of Sanzar and Garaway. As they are employed by the scheme owner and offering limited assistance, I am looking to see if there is a group of scheme (Sanzar, Garaway) users that I could contact?

I would like to see what appetite there is for fighting via the FTT (if we get an APN) and what individuals may have to contribute.

TIA

[TonyTucker]

Would someone be able to provide details via PM of the private group for ex-Sanzar?

Thanks
TT

[MrO666]

APN vs Offer To Settle

This is no more than a thought process here, but seeing as HMRC are sending letters inviting people to settle by the end of Jan 2015, then would this not indicate that they're unlikely to issue APN's prior to that ?

After all, why waste time and money sending people letters asking them to settle, if they're then going to hit the same people with an APN a month later ?

Just a thought that's all.

[DonkeyRhubarb]

This is no more than a thought process here, but seeing as HMRC are sending letters inviting people to settle by the end of Jan 2015, then would this not indicate that they're unlikely to issue APN's prior to that ?

After all, why waste time and money sending people letters asking them to settle, if they're then going to hit the same people with an APN a month later ?

Just a thought that's all.

Agreed.

The letters could be viewed as a warning/threat/ultimatum. "Come forward voluntarily and settle or else you'll be issued with APNs." HMRC could then say they'd given people ample opportunity to settle their affairs before releasing the APN salvo.

The trouble is there is no friggin incentive to settle.

Settle = tax + interest
APN = tax

Doh!

[tax is taxing]

Private group - Ex Sanzar

Would someone be able to provide details via PM of the private group for ex-Sanzar?

Thanks
TT

Can I have the details as well please? If such group exisits.