HMRC enquiries for EBT schemes through SANZAR

[horrada]

On that amount, I would probably settle under the understanding the your expenses are included in settlement.

[LandRover]

On that amount, I would probably settle under the understanding the your expenses are included in settlement.

Will HMRC consider expenses to be deducted? Have you read anything that implies that?

I ask as I have large expenses unclaimed for travel.

[malvolio]

Will HMRC consider expenses to be deducted? Have you read anything that implies that?

I ask as I have large expenses unclaimed for travel.

Just a passing thought - who are you going to claim expenses from, exactly? Strictly speaking they should have been claimed on the relevant SAR/P11D for the year.

[horrada]

You can claim on any expenses from up to 7 years before you formed your company.

[malvolio]

You can claim on any expenses from up to 7 years before you formed your company.

No, you can claim for reasonable incidental expenses associated with setting up your company or incurred while the company is getting its act together. Previous employments don't count.

[LandRover]

Just a passing thought - who are you going to claim expenses from, exactly? Strictly speaking they should have been claimed on the relevant SAR/P11D for the year.

That's the issue I have. Using an EBT scheme meant I didnt claim expenses for travel that I do now being LTD. Yes I know I was a idiot who took bad advice from accountant, but hindsight is wonderful. Will HMRC consider these travel expenses in the settlement opportunity? Somehow I doubt it.

[LisaContractorUmbrella]

That's the issue I have. Using an EBT scheme meant I didnt claim expenses for travel that I do now being LTD. Yes I know I was a idiot who took bad advice from accountant, but hindsight is wonderful. Will HMRC consider these travel expenses in the settlement opportunity? Somehow I doubt it.

Without knowing all the facts I can't say 100% but I can't see why the expenses shouldn't be allowed; presumably HMRC are fighting their case from the point of view that the EBT was a sham arrangement and that your earnings should have been taxed as employment income? If that's the case then any employment related expenses that haven't previously been claimed, that are supportable and meet HMRC's criteria should be allowable. Just bear in mind the earliest you can go back is 2010/11 tax year

[malvolio]

Without knowing all the facts I can't say 100% but I can't see why the expenses shouldn't be allowed; presumably HMRC are fighting their case from the point of view that the EBT was a sham arrangement and that your earnings should have been taxed as employment income? If that's the case then any employment related expenses that haven't previously been claimed, that are supportable and meet HMRC's criteria should be allowable.

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...

[LisaContractorUmbrella]

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...

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

[horrada]

No, you can claim for reasonable incidental expenses associated with setting up your company or incurred while the company is getting its act together. Previous employments don't count.

.

Who says expenses applies to previous employment?