HMRC enquiries for EBT schemes through SANZAR

[MrO666]

No I didn't get an 08-09 as I only was only a sanzar employee in 09.
On the back of this assessment is a demand for £20k which states must be paid by October.

I've also logged in to hm website and they've added the charges incl. Interest & fees to my account.

Next step will be to appeal using the standard wording fron earlier posts unless anyone has any further suggestions?

Lets be clear here, have you received an assessment or a tax demand....they are very different beasts ?

An assessment means HMRC haven't got a clue what (if anything) you owe them. A demand means that they're VERY sure exactly what you potentially owe them, which means they have full details of what you received during that tax year.

[vern19]

Where did you hear that from ? And if that's the case, why are certain people receiving them now and not all together.

I'm not disputing what you're saying, more asking the question.

I am in communication with a few people caught up in these enquiries (not necessarily Sanzar). Some of the people I know have already engaged tax consultants to act on their behalf so I suspect my information is reasonably reliable as most of these tax consultants are regularly dealing with or are ex HMRC and have good information.

I have no idea why HMRC are sending out the enquiry letters in batches

[turnover]

I am in communication with a few people caught up in these enquiries (not necessarily Sanzar). Some of the people I know have already engaged tax consultants to act on their behalf so I suspect my information is reasonably reliable as most of these tax consultants are regularly dealing with or are ex HMRC and have good information.

I have no idea why HMRC are sending out the enquiry letters in batches

HM Revenue & Customs: Contractor loan schemes

[Safe]

I have heard that letters will be sent questioning tax returns for periods 2009 / 2011 in October (next month).

So these letters cover from 2008 to 2011. For 2011 does it mean 2011-2012 tax return or 2010-2011 tax reurn.
Just need some clarification. I have already got letter for 2010-2011 tax return but not for 2011-2012.

Thanks

[vern19]

So these letters cover from 2008 to 2011. For 2011 does it mean 2011-2012 tax return or 2010-2011 tax reurn.
Just need some clarification. I have already got letter for 2010-2011 tax return but not for 2011-2012.

Thanks

I'm not sure. This information came from a tax professional working on a different scheme. HMRC have all the information they need to identify people using these avoidance schemes so you will probably get enquiries for all the years you worked eventually. The question is - Can HMRC make demands for tax where the law is ambiguous? They probably can if they work on it long enough and spend enough tax payer money on it through tribunals etc. The jury seems to be still out on whether they will do this or not

[Safe]

I'm not sure. This information came from a tax professional working on a different scheme. HMRC have all the information they need to identify people using these avoidance schemes so you will probably get enquiries for all the years you worked eventually. The question is - Can HMRC make demands for tax where the law is ambiguous? They probably can if they work on it long enough and spend enough tax payer money on it through tribunals etc. The jury seems to be still out on whether they will do this or not

Well Jimmy Carr hasn't paid yet!He was using the same arrangment HMRC is describing in their website. Being an employee and getting a loan. Do you know how they calculate how much you owe tax and NI to them? Plus of course penalty nd intrest.

[vern19]

Well Jimmy Carr hasn't paid yet!He was using the same arrangment HMRC is describing in their website. Being an employee and getting a loan. Do you know how they calculate how much you owe tax and NI to them? Plus of course penalty nd intrest.

Tax amount depends on what tax bracket you are in. Interest is 3%, penalties can be anything up to 100%. The maximum penalty is for tax evasion.

There was no mention of NI on my enquiry letter

[MrO666]

Even if people do end up having to pay these assessments, there shouldn't be any penalty on them as you haven't deliberately tried to cheat the HMRC. Interest would be applied however, but providing any SRN was included on your return it's most unlikely that there would be any penalty applied. I believe that penalties would be reserved for those that had clearly done something they knew was wrong from day one (ie - evasion).

Has anybody on here actually had letters for more than one period yet ? IE - most people got hit with the 08-09 assessments, however have any of those individuals also received a further assessment for 09-10 or 10-11 ?

One thing is for sure whatever happens with all of this will take years, so logic would say start saving a bit now........if it comes to nothing then you've a nice little savings pot instead. Also, remember that if HMRC can eventually prove that any loans were income, you are then 100% entitled to offset every possible expenses you can lay your hands on, so start searching through receipts and emails and everything else to stock pile them.

[Reggie]

Lets be clear here, have you received an assessment or a tax demand....they are very different beasts ?

An assessment means HMRC haven't got a clue what (if anything) you owe them. A demand means that they're VERY sure exactly what you potentially owe them, which means they have full details of what you received during that tax year.

After what I previously posted, the next page is a

"Notice of assessment

I am sending this assessment to you because we have found that there is additional tax due that you have not previously told us about. This assessment allows us to collect the additional tax.

I enclose a copy of my calculation of the amount charged by this assessment. I have included this amount on your self assessment statement.

About your advisor
I have sent a copy to your advisor xxxxxx xxxxxx

Paying what is due
Please make sure you pay the amount shown at the top of this assessment by xx October 2013.

How to pay

What to do if you disagree (appeal etc...)

etc..."

Then the final page called " Tax Assesement for 2009-2010"

Detailing other income received £A

Total income received £A

Total income on which tax is due

How I have worked out your income tax = (Total income (A) x %40 = £Total Tax Due

Is this the same letter as other people have recieved?

[MrO666]

After what I previously posted, the next page is a

"Notice of assessment

I am sending this assessment to you because we have found that there is additional tax due that you have not previously told us about. This assessment allows us to collect the additional tax.

I enclose a copy of my calculation of the amount charged by this assessment. I have included this amount on your self assessment statement.

About your advisor
I have sent a copy to your advisor xxxxxx xxxxxx

Paying what is due
Please make sure you pay the amount shown at the top of this assessment by xx October 2013.

How to pay

What to do if you disagree (appeal etc...)

etc..."

Then the final page called " Tax Assesement for 2009-2010"

Detailing other income received £A

Total income received £A

Total income on which tax is due

How I have worked out your income tax = (Total income (A) x %40 = £Total Tax Due

Is this the same letter as other people have recieved?

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.