HMRC enquiries for EBT schemes through SANZAR

[DeadDOTAS]

Some people - including MPs - appear to be supporting us

Mark Field, MP in the Daily Telegraph:

HMRC

[SantaClaus]

BBC News - North Korea: Students required to get Kim Jong-un haircut

Maybe thats next?

Can you imagine if everyone had to get a David Gauke haircut? I'd rather hang myself.

[DesparateDan]

07-08

I today received a dreaded assessment for 07/08 :-( I was also one of the ones who listened to sanzar when they told me not to do a SA!.

Just wanted it let others know they are now working backwards (where they can)

I also received an assessment for 07/08, stating they "have found additional tax is due..... This income had not previously been reported to HMRC..."

a) That's a lie
(I took no dividends or loans from Sanzar that tax year, so they can't have found that there is tax due)
b) The assessment is for tax at 22%, even though I was a 40% tax payer that year
c) Thay are also asking for Class 4 NIC
d) It is sent from a different address than my other assesments.

I guess the different address is down to the fact Sanzar was not an EBT during 07-08

Having two different departments investigating is just going to make things exponentially worse.

[eek]

I also received an assessment for 07/08, stating they "have found additional tax is due..... This income had not previously been reported to HMRC..."

a) That's a lie
(I took no dividends or loans from Sanzar that tax year, so they can't have found that there is tax due)
b) The assessment is for tax at 22%, even though I was a 40% tax payer that year
c) Thay are also asking for Class 4 NIC
d) It is sent from a different address than my other assesments.

I guess the different address is down to the fact Sanzar was not an EBT during 07-08

Having two different departments investigating is just going to make things exponentially worse.

While you took no dividends or loans from Sanzar that year, did you work for Sanzar that year?

[DesparateDan]

While you took no dividends or loans from Sanzar that year, did you work for Sanzar that year?

I did work for Sanzar, for the last two months - but the first time I had a loan from Sanzar was in the 08/09 tax year, under the 08/09 DOTAS and is part of my 08/09 tax return

[eek]

I did work for Sanzar, for the last two months - but the first time I had a loan from Sanzar was in the 08/09 tax year, under the 08/09 DOTAS and is part of my 08/09 tax return

I think you are looking at a rushed attempt to get things in under the 6 years rule.

The more worrying thing is how does hmrc know that you used Sanzar in feb 2008?

[DesparateDan]

I think you are looking at a rushed attempt to get things in under the 6 years rule.

The more worrying thing is how does hmrc know that you used Sanzar in feb 2008?

I was an employee of Sanzar, in Feb 08 and had two months PAYE, but no dividends, or loans

[DesparateDan]

I think you are looking at a rushed attempt to get things in under the 6 years rule.

The more worrying thing is how does hmrc know that you used Sanzar in feb 2008?

Peculiar thing is

07/08 HMRC clearly haven't got a clue
08/09 they have raised an assessment based on who knows what
09/10 they have raised an assessment on the exact ammount of the loans I received.
10/11 still waiting to hear

(oh,, and even though they want to claim they weren't loans, they still want to include the benefit from the loans as part of my taxable income)

[eek]

I will emphasis that I am merely an interesting bystander here. I never used (nor world use) the schemes and I'm not a tax specialist (Heck apart from A level accountancy 24 years ago I'm not an accountant).

The important thing to note is that for discovery in the 2007-08 tax year letters had to be out by last Saturday. I doubt HMRC cared what the letters and amounts are, all they care about is that the letters are out.....

See SALF411 - Enquiries into Tax Returns: time limits for discovery assessments and

Section 34(1)

In any case of incomplete disclosure without careless or deliberate conduct the time limit for a discovery assessment is not later than 4 years after the end of the tax year to which it relates.

Section 36(1) and (1A)

In any case involving a loss of tax brought about carelessly, the time limit for making a discovery assessment is not later than 6 years after the end of tax year to which the assessment relates.

As of this morning and the new tax year Section 34 can only be used for April 2010 onwards, Section 36 for April 2008 onwards....

[TonyTucker]

Has anyone heard anything from our friends at Contractor Helpdesk? Been ominously quiet since the new legislation was announced. Would be nice to get some kind of feedback from them, even if it's not that positive. Feel a bit stranded....

Cheers
Tony