Edge EBT thread

[GoneSouth]

Group website

I've been advised that the s29ers (Edge) Help Group website has been re-branded and updated.

Please take a look Norla Edge Former Employee Self Help Group EBT Employee Benefit Trust

[Michael J Perry FCA]

Follower Notices and Philip Boyle decision

I predict that HMRC will use the Philip Boyle decision to issue follower notices to users of non-DOTAS schemes such as Edge.

There is a provision in the Finance Act 2014 for a 12 month limit for HMRC to issue a follower notice after a relevant final judicial ruling.

However, hidden in Clause 210 of the Bill is a transitional provision which could allow HMRC to use that decision for three years from the date on which the Act is passed.

[LisaContractorUmbrella]

I predict that HMRC will use the Philip Boyle decision to issue follower notices to users of non-DOTAS schemes such as Edge.

There is a provision in the Finance Act 2014 for a 12 month limit for HMRC to issue a follower notice after a relevant final judicial ruling.

However, hidden in Clause 210 of the Bill is a transitional provision which could allow HMRC to use that decision for three years from the date on which the Act is passed.

Boyle was using a forex scheme wasn't he? Surely they can only target that particular mechanism with the follower notices

[jbryce]

I predict that HMRC will use the Philip Boyle decision to issue follower notices to users of non-DOTAS schemes such as Edge.

There is a provision in the Finance Act 2014 for a 12 month limit for HMRC to issue a follower notice after a relevant final judicial ruling.

However, hidden in Clause 210 of the Bill is a transitional provision which could allow HMRC to use that decision for three years from the date on which the Act is passed.

How would they apply a follower notice to a non DOTAS scheme? Is there not a provision in the bill to require non DOTAS schemes to be evaluated by the GAAR first?
How would they work out the amounts?

[LisaContractorUmbrella]

How would they apply a follower notice to a non DOTAS scheme? Is there not a provision in the bill to require non DOTAS schemes to be evaluated by the GAAR first?
How would they work out the amounts?

If a scheme mechanism has been tested in court and failed then HMRC can sent payment notices to users of schemes which they feel operate in the same way

[ramzanamin]

If a scheme mechanism has been tested in court and failed then HMRC can sent payment notices to users of schemes which they feel operate in the same way

Believe Edge was a DOTAS Scheme and wasn't based on Forex - so not sure how it applies

[meanttobeworking]

I predict that HMRC will use the Philip Boyle decision to issue follower notices to users of non-DOTAS schemes such as Edge.

Edge did have a DOTAS number, at least it did in the 10/11 tax year.

[jbryce]

If a scheme mechanism has been tested in court and failed then HMRC can sent payment notices to users of schemes which they feel operate in the same way

My sins were all DOTAS, so GAAR is a bit of a mystery to me, however I reckon that non DOTAS schemes have to be reviewed by the GAAR.

The HMRC response states:
"A number of respondents argued that HMRC should only be able to proceed where the GAAR Advisory Panel delivers an opinion that supports HMRC’s contention that counteraction is appropriate under the GAAR."
....to which the HMRC replied:
"The Government agrees and will make changes to the legislation accordingly. "

In addition:
"The GAAR applies to arrangements entered into on or after July 17 2013. This means that, for income tax, arrangements to which the GAAR may apply will not
feature in tax returns until returns for the year ended 5th April 2014." from this HMRC document

In order for HMRC to issue follower notices then, in this case, the GAAR will have to put it through the panel. Boyle may make this case simpler (in some instances), but many will not fall under Boyle.

However, if you have entered into an arrangement which predates DOTAS it *will* will be assessed by the GAAR and it is very, very likely that HMRC will be sending you a follower notice at some point.

Don't be complacent, if you're in a scheme. Get out.

[PeterF]

I predict that HMRC will use the Philip Boyle decision to issue follower notices to users of non-DOTAS schemes such as Edge.

???

[convict]

They'll probably argue that the TAA provisions apply, even though they were weakly/not contested by Boyle's representation.

This is the danger of follower notices; weakly contested case that you know nothing about as FTT lists are not public, then all of a sudden HMRC decides some aspect is similar to your own case (however small or incidental that may be), and now you have to pay up and argue later, at their leisure.

One option is for everyone to put in an FTT request, at least then the chances are someone you know on here will be called and you can co-ordinate accordingly