Edge EBT thread

[Jassop]

I checked and the scheme i was associated with and it appears on the HMRC list published today. On The Times article. It states that that 'The individuals affected have a mean gross income of £262,000, HMRC said.' My gross was never more than 60k so i wonder if i will be included?

My liability is low (16K)

A mean income of 262,000 does not sound right. The article also says there are 33,000 individuals with 5.1bn of tax due, which is 154k each. If that was all in one tax year, the mean gross income may be 262k but since HMRC were going back several years, someone can't do basic maths. (Whether this is HMRC, The Times or Accountancy Age which the link was, I don't know, but they all should know better.)

[Living life on the Edge]

A mean income of 262,000 does not sound right. The article also says there are 33,000 individuals with 5.1bn of tax due, which is 154k each. If that was all in one tax year, the mean gross income may be 262k but since HMRC were going back several years, someone can't do basic maths. (Whether this is HMRC, The Times or Accountancy Age which the link was, I don't know, but they all should know better.)

Similar figures came from HMRC (Jim Harra) in evidence to the House of Commons Treasury Committee on 8th July, 2014. If I heard correctly, affecting 43,000 taxpayers over the next 18 months, with a gross mean annual income of £260,000.

Response at time 12:00:52 to a question from Brooks Newmark MP:

Player

You could check Hansard if you want the definitive statement

[Rob79]

The mean income figure is one that has stuck from the original HMRC justification.

Like all mean numbers, it's meaningless.

[Michael J Perry FCA]

Finance act 2014

Latest news on the Finance Act 2014

Following agreement by both Houses on the text of the Bill it received Royal Assent on 17 July.

The Bill is now an Act of Parliament (law)

[mulberryblue]

Received assessments for 2005/06 and 2006/7 today!

Today I have received further communication from HMRC regarding Edge. IN 2009 they sent me a single letter saying they were looking into my employment with Edge for previous tax years. But nothing since until in 2012 I received a letter with a new tax assessment for 2008/09 and then a year later a tax assessment for 2009/10.

Today I have received a letter saying edge did not provide information for 2005/06 and I need to supply it now! They had the information on my self assessment. It also contained tax assessments for 2006/07 and 2007/08, 2008/09 and 2009/10 both of which they show I have appealed, and 2010/11.

How far back can HMRC go - since they have not corresponded with me since 2009 and yet 5 years later produce a tax assessment to tax years 8 /9 years ago. Are they allowed to do this?

Having looked at HMRC website it says I only need to keep my tax papers for 5 years after the end of the tax year.

I assume I will need to appeal all 3 new assessments - I was expecting the 2010/11 but there figures say I earned £225,000 that year - if only I wish.

Any advice with regard as to what to do with the older assessments i.e. 2005/06, 2006/07 and 2007/08 would be appreciated.

Thanks

[eek]

Today I have received further communication from HMRC regarding Edge. IN 2009 they sent me a single letter saying they were looking into my employment with Edge for previous tax years. But nothing since until in 2012 I received a letter with a new tax assessment for 2008/09 and then a year later a tax assessment for 2009/10.

Today I have received a letter containing tax assessments for 2005/06 and 2006/07, 2008/09 and 2009/10 both of which they show I have appealed, and 2010/11.

How far back can HMRC go - since they have not corresponded with me since 2009 and yet 5 years later produce a tax assessment to tax years 8 /9 years ago. Are they allowed to do this?

Having looked at HMRC website it says I only need to keep my tax papers for 5 years after the end of the tax year.

I assume I will need to appeal all 3 new assessments - I was expecting the 2010/11 but there figures say I earned £225,000 that year - if only I wish.

Any advice with regard as to what to do with the older assessments i.e. 2005/06 and 2006/07 would be appreciated.

Thanks

You need proper advice but assuming that letter in 2009 was dated before April 5th I think they are valid. Totally and utterly unfair (due to the time they've wasted before sending them) but technically valid.

[dezze]

Today I have received further communication from HMRC regarding Edge. IN 2009 they sent me a single letter saying they were looking into my employment with Edge for previous tax years. But nothing since until in 2012 I received a letter with a new tax assessment for 2008/09 and then a year later a tax assessment for 2009/10.

Today I have received a letter containing tax assessments for 2005/06 and 2006/07, 2008/09 and 2009/10 both of which they show I have appealed, and 2010/11.

How far back can HMRC go - since they have not corresponded with me since 2009 and yet 5 years later produce a tax assessment to tax years 8 /9 years ago. Are they allowed to do this?

Having looked at HMRC website it says I only need to keep my tax papers for 5 years after the end of the tax year.

I assume I will need to appeal all 3 new assessments - I was expecting the 2010/11 but there figures say I earned £225,000 that year - if only I wish.

Any advice with regard as to what to do with the older assessments i.e. 2005/06 and 2006/07 would be appreciated.

Thanks

Did the letter in 2009 reference certain tax years? I presume they had to specify which tax years they were opening enquiries on? (my presumption may be wrong).

[DonkeyRhubarb]

I recently heard from a guy who had a letter from HMRC in 2005 saying they were looking into his 2003/4 tax return.

He never heard anything more and forgot all about it.

9 years later he gets an assessment.

Unfortunately it's perfectly valid because there is no statutory time limit for when they can raise an assessment, or issue a closure notice, after opening an enquiry.

[mulberryblue]

Advice from who?

You need proper advice but assuming that letter in 2009 was dated before April 5th I think they are valid. Totally and utterly unfair (due to the time they've wasted before sending them) but technically valid.

Many thanks. When you say I need proper advice who should I be getting the advice from? I am unsure as whether I should appeal all the new assessments I have been sent.

[Michael J Perry FCA]

Assessments for earlier years

Many thanks. When you say I need proper advice who should I be getting the advice from? I am unsure as whether I should appeal all the new assessments I have been sent.

A "discovery" assessment can be made for up to 20 years from the end of the year of assessment where there has been a failure to provide information about an 'avoidance scheme'. For 2008/09 and before the tax loss must also be attributable to negligent conduct but it seems unusual for these earlier years to be addressed at this time. Maybe we are going to see more of these?

You MUST appeal within the 30 day limit and apply for full postponement. However, it is likely you will receive an Accelerated Payment Notice for these years which will release the tax for collection within 90 days. You should check that the figures assessed agree to your P11D's in the first instance.