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HMRC enquiries for EBT schemes through SANZAR

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    I feel like it is punishment for contactors, not tax redress

    I would like to just have a little vent as to why I feel that these new demands are counterproductive. They encourage me into paralysis rather than action to pay a reasonable tax up

    So I am happy to settle if it really is tax avoidance. The scheme was used as an admin of payments and I wasn't using it to avoid tax. But now we seem to be in a real pickle. Here is what I think HMRC want:

    I earned say 100 Gross
    -20 for Sanzar fee
    -20 for salary which had tax and NIC on it
    So on salary say I received 15 net of tax

    60 received as loans
    -25 (say) for income tax being claimed by HMRC
    -more for NIC perhaps? Who knows how much?
    -more for IHT perhaps? Who knows how much?
    So my net on the loans would be 35 or much less

    So at best without additional NIC and IHT liabilities (which I can't understand) if I settle I am left with less than 50 out of the 100 (50% deductions rate). With NIC and IHT perhaps the effective deductions rate jumps to 70% or more?

    I feel that this approach is more about dolling perceived punishment on those of us ignorant of tax affairs than about putting us on the right footing. The latest (you may have to pay IHT and NIC on top of this) is confirmation of this executioner attitude by the HMRC.

    What happened to decency and doing morally the right thing?! If HMRC said to me, out of that 100 I should have paid say 35% tax and 10% NICs so 45% in total and asked me to top up to that level so I still kept the same net income. That would be a sensible amnesty and I would do that, as it was also the right thing morally for me to do given my ignorance of the tax situation earlier.

    However as this feels like a punishment, I am in a corner from which I feel I cannot budge. So we will end up going to court probably in a bid to show taht this is punishment not tax redress.

    I appeal to anyone with common sense to think this through. It's currently counterproductive and morally wrong.

    Anyway rant over.

    Comment


      Originally posted by Safe View Post
      No it will affect us.
      Well I spoke to HMRC about this a couple of weeks ago and they said it would not impact the APN I may (or may not) receive for the EBT I was a member of.

      Comment


        Had a letter from HMRC today....HMRC Counter-Avoidance...

        Essentially states that I have until Jan 2015 to settle with them although no wording on how much.....they say I need to call them for a "quick" discussion on things they would want to calcualte how much to pay....hmm....

        Always was going to settle but they say contact them by January and then FROM then they will calculate figures and then I have 90 days to pay....so, if I leave it to the end and contatc them in say December I would probably have to settle by around April-May next year.....

        Comment


          Originally posted by lara400 View Post
          Always was going to settle but they say .....
          What is your reason or benefit in settling? Myself cannot see any apart from a very expensive peace of mind. Would help if you can share your reasons for settling!

          Comment


            Similar Letter

            Originally posted by varunksingh View Post
            What is your reason or benefit in settling? Myself cannot see any apart from a very expensive peace of mind. Would help if you can share your reasons for settling!
            Agree with this question.

            Asked to pay all PRESUMED tax and interest.

            Then HMRC will CONSIDER closing the investigation if they do not have other reasons to keep the investigation open......

            May as well wait for APN

            Comment


              Originally posted by tax is taxing View Post
              Have all Sanzar users received the letter from Counter avoidance team with reference to BOYLE V HMRC?

              It appears from this forum that different threads (scheme users) have mentioned receiving different letters..
              I suspect we all have had the same letter including the reference to BOYLE, I'm guessing they don't want to mention Rangers relating to loans as their 80% must be a bit wobbly by now. Be interesting to see if a ToAA case will make it past the FTT in their favor.
              But offering a settlement opportunity smacks of desperation, if they had the law on their side it would be straight to APN.

              my 2 cents

              Comment


                Originally posted by z4thras View Post
                I suspect we all have had the same letter including the reference to BOYLE, I'm guessing they don't want to mention Rangers relating to loans as their 80% must be a bit wobbly by now. Be interesting to see if a ToAA case will make it past the FTT in their favor.
                But offering a settlement opportunity smacks of desperation, if they had the law on their side it would be straight to APN.

                my 2 cents
                I would argue you are reading way too much into this. HMRC had these letters to go following the successfully Rangers tribunal and just let them go out even after that result.

                APNs wouldn't be going out this quickly as they would require HMRC calculating how much is owed....
                merely at clientco for the entertainment

                Comment


                  HMRC a nightmare for them too

                  Originally posted by eek View Post
                  I would argue you are reading way too much into this. HMRC had these letters to go following the successfully Rangers tribunal and just let them go out even after that result.

                  APNs wouldn't be going out this quickly as they would require HMRC calculating how much is owed....
                  APNs are going to be difficult for HMRC, hence the settlement letter. For everyone that settles it eases the burden on HMRC.

                  Rangers will be a pain the arse for HMRC (they were telling anyone that would listen that they would win); HMRC have no idea if ToAA applies to all EBTs and are probably dreading having to roll out Boyle in an FTT.

                  So - the offer letters are to prevent HMRC grinding to a halt. They are recruiting new people to manage the upcoming administrative burden and new staff needs to be trained.

                  It may be a nightmare for us - but it's soon going to be a nightmare for HMRC as well.

                  Comment


                    I have also received my love letter from Ms Stopp.

                    Can't see much point in asking for a calculation. When the times comes, they can send me their latest fable and I'll query it then.

                    Comment


                      IHT Tax

                      Does anyone know if inheritance tax charge is required on loans received between 2010-2011 on Sanzar scheme? A bit gray area and first time to hear.

                      Comment

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