Edge EBT thread

[jbryce]

In that case it makes sense for me to wait until the last moment of the settlement opportunity window and gamble on HMRC not issuing me with a FN under the conditions and time frame stated. If they don't issue a FN by then I'm assuming I'm in the clear, certainly as far as an APN is concerned?

I don't believe there is any other avenue for HMRC to claw back their tax assessment figure is there, other than starting a tribunal case on the said scheme?

..only as far as the Boyle case goes. They can always win another case and then use that for the FN.

[Krung Thep]

Why would you be in the clear as far as an APN is concerned?

I was going by the conditions of issuing a follower notice and an APN using the time frame of the Boyle case. The Boyle case is what HMRC made reference to in their settlement opportunity letter.

As jbryce has pointed out however, there could be another judicial ruling in future in favour of HMRC in which HMRC are relying on to be relevant to the TRM scheme. In that respect you are right to query my assertion.

However, just how many schemes are going to be relevant enough for HMRC to be successful? I certainly think its worth a gamble not to make an early settlement.

[TheDandy]

I was going by the conditions of issuing a follower notice and an APN using the time frame of the Boyle case. As jbryce has pointed out however, there could be another judicial ruling in future in favour of HMRC in which HMRC are relying on to be relevant to the TRM scheme. In that respect you are right to query my assertion.

However, just how many schemes are going to be relevant enough for HMRC to be successful? I certainly think its worth a gamble not to make an early settlement.

I agree with the general approach of settling as late as possible - if you intend to settle for a figure different to demanded. The Edge scheme is a DOTAS scheme, therefore they don't need a FN.

[Ozbird]

My husband used Edge way back when he first started contracting as the client needed a limited company and there was uncertainty about IR35. He got a settlement opportunity letter but didn't say what year. He was only in it for 1 year as we felt uncomfortable having the loans hanging around unpaid forever. I called HMRC as we couldn't remember which tax year it was related to and we moved to Oz a few years back and have lost the paperwork. Anyway, spoke to a Mr Speed who told me it was for 2005/2006 and the amount of the loans he said was more than double what hubby expected but how do we prove this? We can't get bank statements from 9 years ago. We do not have the P11D but the amount on the tax return for the loan benefit if equal to 5% (for the interest rate) divided by 5 and then multiplied by 100 would support the loan amount that hubby expected. The HMRC won't take this as evidence. I suppose they could look at other years earnings but prior to Edge he was a permie and after Edge he earned more than in 2005/2006 as that year my mum was dying of pancreatic cancer and he took a lot of time off.

[vern19]

My husband used Edge way back when he first started contracting as the client needed a limited company and there was uncertainty about IR35. He got a settlement opportunity letter but didn't say what year. He was only in it for 1 year as we felt uncomfortable having the loans hanging around unpaid forever. I called HMRC as we couldn't remember which tax year it was related to and we moved to Oz a few years back and have lost the paperwork. Anyway, spoke to a Mr Speed who told me it was for 2005/2006 and the amount of the loans he said was more than double what hubby expected but how do we prove this? We can't get bank statements from 9 years ago. We do not have the P11D but the amount on the tax return for the loan benefit if equal to 5% (for the interest rate) divided by 5 and then multiplied by 100 would support the loan amount that hubby expected. The HMRC won't take this as evidence. I suppose they could look at other years earnings but prior to Edge he was a permie and after Edge he earned more than in 2005/2006 as that year my mum was dying of pancreatic cancer and he took a lot of time off.

Your bank will be able to provide statements

[trev88]

Your bank will be able to provide statements

old bank statements yes....at a cost.
You state 2005-6.
I got the letter, it didn't state a year, but mine was 04-05.. As far as I know, HMRC never opened an investigation for me, and, on advice, I wrote to HMRC asking on what basis they have written to me. No response, and that was 4 weeks ago. I think I'm safe, and I was only 'employed' thru Norla for 2 months anyway, and think I had my loan repaid immediately.

[Rob79]

old bank statements yes....at a cost.
You state 2005-6.
I got the letter, it didn't state a year, but mine was 04-05.. As far as I know, HMRC never opened an investigation for me, and, on advice, I wrote to HMRC asking on what basis they have written to me. No response, and that was 4 weeks ago. I think I'm safe, and I was only 'employed' thru Norla for 2 months anyway, and think I had my loan repaid immediately.

Almost certainly not "safe".

4 weeks is nothing to HMRC. They can take 4 months or 4 years to reply without damaging their cause.

If they have truly missed an enquiry window on 04/05 you need to check your return for that year and see EXACTLY what you told them. If HMRC think it's inadequate, they have an extended window in which to open an enquiry. How far that window extends depends on circumstances.

[jbryce]

Your bank will be able to provide statements

...well not mine. I needed proof of charges from 2006 and requested the details from my bank. It was refused - they are only able to supply records back 7 years.

[vern19]

...well not mine. I needed proof of charges from 2006 and requested the details from my bank. It was refused - they are only able to supply records back 7 years.

That is strange. How long have banks had computers now? I suspect if HMRC were to ask them, they would be able to conjure something up

[NeedTheSunshine]

old bank statements yes....at a cost.
You state 2005-6.
I got the letter, it didn't state a year, but mine was 04-05.. As far as I know, HMRC never opened an investigation for me, and, on advice, I wrote to HMRC asking on what basis they have written to me. No response, and that was 4 weeks ago. I think I'm safe, and I was only 'employed' thru Norla for 2 months anyway, and think I had my loan repaid immediately.

It took seven weeks to get my settlement calculation so I wouldn't count four weeks with no response as being safe. Mind you, if you were only in it for 2 months the amount you might have to pay shouldn't be high.

I received my notice of enquiry in January 2009 and then heard nothing from them until I received the Settlement Opportunity Letter that everyone else received (in July this year).