Edge EBT thread

[Simmer]

Add me to the list please!

Hi All,

Please add me to the list also. Same thing, recieved notice of assessment last week and as ive been away just opened it last night.
Found this forum thread helpful as has alleviated some of the initial stress!

Ive emailed Michelle Booth at Edge for the template letter to appeal. To date Michelle and Edge have always been quick to respond to queries and reply with assistance so hoping this continues to be the case.

Like others it doesnt seem logical or reasonable that HMRC could retrospectively claim tax when the scheme was fully compliant and legal at the time and as soon as the law changed the scheme ceased so will wait to see how this pans out.

R

[ScottW]

And another.....

After receiving what now seems to be the obligatory letter to EBT users (I was with Edge for 4 years) I decided to do a bit of googling and found myself here – decided to sign up and post.

Having digested others postings on this and other threads it would seem like a trawling exercise by HMRC.

They clearly have EBT users in their sights as a source of cash but they surely need to win a whole series of court cases before this goes any further?

This is all pretty ironic for me as a Celtic supporter as I have followed the travails of Rangers with a smile on my face – their victory against HMRC (now in appeal) surely puts a bit of a dent in HMRCs fight against EBTs. My understanding of it is that even if HMRC win against Rangers then that decision is not necessarily applicable to all EBTs as that particular scheme was created with 'side-letters' detailing payments, amounts, dates and non repayments clauses – certainly something we have never had with Edge.

I think the most important thing now is getting the 'appeals' in, clear information from Edge (or whatever they call themselves now) and clarity around whether they will fight this if it goes further as well as the ability and coordination our responses as a group. Several hundred Edge contractors throwing in a couple of hundred quid each to have top notch legal representation to fight this is maybe the best option if this moves on.

Just for clarity does anybody know what the work case scenario is, if like me, you simply cannot pay an HMRC demand if this goes all the way? Is it sign the house over to the wife and bankruptcy or 18 months in the Bar-L or Wormwood scrubs?


Am I concerned – YES
Am I loosing sleep over it – NO

[Breeze91]

Although not widely known there was an EBT Settlement Opportunity and then an update and this should be checked out on the HMRC website. There is also a list of FAQ's and the parts relating to 'employees' are relevant.

Further, a read of HMRC's Litigation and Settlement Strategy will give an indication of why these current actions are being taken.

Have you dealt with anyone taking the Settlement Opportunity. Most couldn't stomach it but I'm wondering if in the long run if cases start losing against HMRC and we're faced with paying up coupled with massive interest, penalties and cost, hindsight might say that settling was the better option. I think it would involve self disclosure of previous years out with the normal 4 years if they hadn't previously opened those.

It's just has to sit in there somewhere as an option for consideration in the scale the goes from best case to worst case scenario.

Cheers.

[kzcomp1]

Anther one bites the dust

Me too.
They just never leave us alone.

[BaconVII]

Another one to add to the list

Been reading the advice/comments on this thread since getting my love letter from HMRC.

Thanks for the input from all so far. Unfortunately I have no new information to add that hasn't already been posted.


Cheers

[demby]

One more to the list

Hi - I was with Edge up until Sept 2011 and have received the Section 29 letter. I have since received a second letter following my appeal.

I note your appeal against the 2008-2009 assessment, and your contentions in the respect. However, my view remains that the funds you received are taxable - potentially under a number of alternative provisions, including employment income rules and specific anti avoidance legislation. We feel this applies, but will consider any futher evidence you may wish to put about the operation of the scheme in your particular circumstanses in support of your appeal that the income is not taxable. If you do wish us to consider futher details at this time, could you please also confirm the full amount of sums you received as loans, if my original estimate is incorrect. If I do not hear from you at this point your appeal will remian open. I will nevertheless continue to review the arrangements and will write to you again in the near future.

Although you have not specifically requested that I postpone collection of the tax charged I assume from your letter that this is required. I have therefore give instructions that no collection action be taken until your appeal is resolved

I've email this to Michelle and am waiting for her to reply.

[Jashan]

Thanks for sharing this.

Hi - I was with Edge up until Sept 2011 and have received the Section 29 letter. I have since received a second letter following my appeal.

I note your appeal against the 2008-2009 assessment, and your contentions in the respect. However, my view remains that the funds you received are taxable - potentially under a number of alternative provisions, including employment income rules and specific anti avoidance legislation. We feel this applies, but will consider any futher evidence you may wish to put about the operation of the scheme in your particular circumstanses in support of your appeal that the income is not taxable. If you do wish us to consider futher details at this time, could you please also confirm the full amount of sums you received as loans, if my original estimate is incorrect. If I do not hear from you at this point your appeal will remian open. I will nevertheless continue to review the arrangements and will write to you again in the near future.

Although you have not specifically requested that I postpone collection of the tax charged I assume from your letter that this is required. I have therefore give instructions that no collection action be taken until your appeal is resolved

I've email this to Michelle and am waiting for her to reply.

Hi Demby,
Many thanks for sharing this follow up letter from HMRC. Please keep us informed of Michelle's suggestion on this development. By the way, when did you send your appeal letter? Did you also receive a seperate Appeal acknowledge letter as well?

[demby]

Follow up letter

Yes I'll let you know what Michelle says. The letter I've quoted from is the only letter I have received since sending the appeal letter, which was sent last Monday. 2nd letter received Saturday.

[mulberryblue]

Another one for the list...

I have received the letter from HMRC and have sent them an appeal letter as per the template supplied by Michelle at Edge. I then received a letter regarding the appeal with the same wording as shown in the above posts.

Nothing more I can add at the moment.

[Obodiah]

Got my assessment letter today (dated 27-Feb). Emailed Advantage accounts and Michelle at Edge straight away.