Edge EBT thread

[cojak]

I have moved all posts referring to the consultation paper to http://forums.contractoruk.com/hmrc-...e-schemes.html as it is bigger than just Edge. All EBT'ers should have access to this information.

[mrs t]

2010/2011 Notice of assessments

Lots of us seemed to have received notice of assessment for 2010/2011 for a crazy amount of so called Other Income in the Income Received section of the Tax Calculation sheet. I wished I had earned that amount of money, but this was not the case especially as I like lots of other Edge people, stopped using their services in Dec 2010. I think they simply added roughly the total amount of the loan over the years as a one off Other Income......beggars belief to be honest.
Anybody got similar or has any thoughts on this....as this would be the equivalent of paying an extra amount of tax for each year (if it came to settlement).....oh and then tax of the full amount on top of that....confused.

[LisaContractorUmbrella]

Lots of us seemed to have received notice of assessment for 2010/2011 for a crazy amount of so called Other Income in the Income Received section of the Tax Calculation sheet. I wished I had earned that amount of money, but this was not the case especially as I like lots of other Edge people, stopped using their services in Dec 2010. I think they simply added roughly the total amount of the loan over the years as a one off Other Income......beggars belief to be honest.
Anybody got similar or has any thoughts on this....as this would be the equivalent of paying an extra amount of tax for each year (if it came to settlement).....oh and then tax of the full amount on top of that....confused.

What was your contract value for the period that you used the scheme? How much tax did you actually pay and how much tax would you have paid had you been paid through PAYE - that would be your starting figure. Penalties and interest may have been added -if it's not clear from the assessment notice what's what ask HMRC for a breakdown. If the calculations do not seem correct then contest the amount - HMRC do get things wrong

[mrs t]

That still does not make sense, the notice of assessments for 08/09 and 09/10, the figures are roughly the right sort of amount i.e approx 20k for each year for tax that is being claimed.

How then for 10/11...which is only for period May to Dec, can it come out at over 100k for tax.....penalties or no penalties that is ludicrous

[LisaContractorUmbrella]

That still does not make sense, the notice of assessments for 08/09 and 09/10, the figures are roughly the right sort of amount i.e approx 20k for each year for tax that is being claimed.

How then for 10/11...which is only for period May to Dec, can it come out at over 100k for tax.....penalties or no penalties that is ludicrous

Then ask for a breakdown from HMRC - as I said, they do get things wrong - just because they have sent you an assessment figure it doesn't mean that it's necessarily correct. You are entitled to understand what you are being pursued for

[malvolio]

That still does not make sense, the notice of assessments for 08/09 and 09/10, the figures are roughly the right sort of amount i.e approx 20k for each year for tax that is being claimed.

How then for 10/11...which is only for period May to Dec, can it come out at over 100k for tax.....penalties or no penalties that is ludicrous

It may well be ludicrous, but have you paid the previous years' yet? If not they've accumulated the tax owed (in their estimation, of course) for all outstanding years plus interest and late payment penalties and rolled it all up into one figure.

Like Lisa says, ask them to explain their sums. Pointless speculating.

[Saleos]

10-11 Discovery Assessments

Recurring theme: 09-10 etc assessments "about right" . 10-11 "ridiculous" "massive" "no relation to reality".

Answer - Edge submitted P11D's for 10-11 with CUMULATIVE loan figures - i.e. all years.

About right then?

It may well be ludicrous, but have you paid the previous years' yet? If not they've accumulated the tax owed (in their estimation, of course) for all outstanding years plus interest and late payment penalties and rolled it all up into one figure.

Like Lisa says, ask them to explain their sums. Pointless speculating.

[mrs t]

You got it....P11D for each year show cumulative amount...section H Interest Free and Low Interest Loans i.e. Maximum Amount Outstanding at any time in the Year. How come for the previous years this did not happen....I can sort of see tax on full amount at the end, but tax again for each previous year...or tax for each year and not on full amount at the end.

[Ragwort]

Former edge employee

Yet another former Edge employee seeking help. The latest letter from HMRC has lead me to look for other affected ex employees and I see that there are a lot of us in the same boat.

I am now in a position where I would also like to join a group and contribute to a "fighting" fund.

Admin: Could you please give me the privileges so that I can contact the member called "The Dandy" directly please.

[GoneSouth]

If you have any desire to pursue group representation please see Norla/Edge Former Employee EBT Self Help Group

Request PM (private message) access if you don't already have it. You can post a request or contact the admins via this page: http://forums.contractoruk.com/sendmessage.php

PM TheDandy here: http://forums.contractoruk.com/priva...=newpm&u=39502
PM Saleos here: http://forums.contractoruk.com/priva...=newpm&u=41765

then make a decision if you have interest in one or both of the groups and if you are willing to foot the likely costs and advise the organiser(s) accordingly

Simply posting a desire to join a group will not achieve anything.

Sorry for the repetition but I want to ensure latecomers are informed

GS