Edge EBT thread

[FHP143]

Hello Everyone,

I know it has been commented by someone before, but it is not yet clear to me, as to what template to use to appeal against my assessment for 2009-2010. I was with Edge and Michelle Booth of Edge is no more working with them. Can someone share the template again for the benefit of everyone?

Secondly, does someone have details for Michelle Booth?

Thanks
Ammar

Ammar, Michelle's details have been posted many times on this site, she can be reached at 08455919552 but she doesn't work for Edge anymore

[Montyb]

Hello Everyone,

I know it has been commented by someone before, but it is not yet clear to me, as to what template to use to appeal against my assessment for 2009-2010. I was with Edge and Michelle Booth of Edge is no more working with them. Can someone share the template again for the benefit of everyone?

Secondly, does someone have details for Michelle Booth?

Thanks
Ammar

Hi Ammar, I got this off a friend who was with Edge, he got this from Edge when it all kicked off, before they vanished that is, ive used it, still not had a reply, also my demand came from Bootle so I sent two letters both to Miss L J Stopp , one at the address below and one to the address from where the demand was sent . My PCG TAX advisor was happy with the content

Please use at your own risk , i'm not a lawyer , just following the herd!


Miss L J Stopp
Local Compliance
Personal & CGT Compliance
Chailey House
Cardington Road
Bedford
MK42 0YS

Date
Your ref
Case Ref
NI Number

Dear Miss Stopp,

I am writing to formally notify my appeal against an additional tax liability of £xxxxx assessed for the tax reporting period “ TAX PERIOD HERE” which has arisen from an outstanding beneficial loan balance.

During the 2010/2011 tax period, I was employed by Edge Consulting Limited in the capacity of a “ YOUR ROLE HERE”. My services were outsourced to an end client for an arranged fee and I was remunerated by way of an agreed salary. At this time, profit that Edge Consulting Limited generated from the outsourcing of its employees was settled into an employee benefit trust of which its employees and I as such an employee, became beneficiaries. The employees were then able to periodically request funds from the trust, this was a request made to the trustees who, at their discretion, would advance funds to the employee from the trust. The funds were paid to the employees as a loan, these loans did not attract an interest rate and were therefore regarded as beneficial to the employee. The loans have always been treated as beneficial by Edge Consulting Limited and my P11D documents support this. Furthermore, these loans all remain outstanding and can be recalled by the trustees at any time.

In consideration of the above, the outstanding EBT loan values should not be treated as income and only the relevant benefit-in-kind tax should apply. This benefit-in-kind denoted in the P11Ds should have been collected through subsequent adjustments of my PAYE tax code.

Please can you postpone the collection of the disputed tax until this matter is resolved.

I trust this should prove sufficient at this stage.

Kindly acknowledge receipt

Yours sincerely,







Best of luck

[Ron Swanson]

"Real Information"

So, has anyone spoken to an expert in this field to guage our situation and chances of winning an appeal?

At what point should our "Group" start doing this?

Are we all in the same edge boat even? I have notices for three years -2008-11...there are some Edge former employees with notices going back to 2003? Are the notices for all years the same?

Given the size of the sums involved, I have no doubt that some people will already have sought professionall advice. But given that this is a public forum, there is very little chance that any real, legal, professional counsel will appear – mainly for two reasons:

• Why would someone spend £XK on advice and then freely share that
• Sharing that could adversely affect their case - HMRC no doubt look on this Forum

That said, if I would expect more ‘real’ information to start appearing on this Forum as and when cases start to be won and lost at Tribunals.

[Living life on the Edge]

The advantage is that they don't charge you interest on the disputed tax liability, should things work out for us all and the HMRC see or are told that what they are doing is grossly unfair and not legal, you can cash out your certificate and pop the money back in your own account or from where ever you had to borrow it from to start with.

In a nutshell, that is a fair summary I think.

They don't pay you interest on the money unless you have put in over 100k ( then its 1% I think)

Yes, currently you are paid 0.75% interest on sums of £100,000 or more - lodged as a single deposit - if that money is eventually used to pay off a liability, or 0.25% if you subsequently redeem your certificate(s) without using against a liability. These rates are variable.

but they don't charge you 3% ( I think) on the outstanding in dispute tax liability.)

Correct - from the date that the CTD is raised by HMRC after receipt of the funds, this stops the interest from being accrued (at whatever the prevailing variable rate is - currently 3%) on the equivalent amount of liability, until you redeem the certificate(s) to settle a liability. Note that any interest accrued from the original due date of the liability until the CTD creation date would still need to be met by the individual.

Anyhow so the way I see this is I maybe able beg borrow and scrape what they THINK I owe (WHICH I DO NOT) send it to the CTD team to hold and not have to worry about the interest piling up for another 2 years......Who knows how long this could drag on for ??? With this CTD I may be able to get a decent nights sleep,

That is my sentiment.

Above is what i have gleaned from the link , however i would want to go over it a few times and make sure the HMRC do not take this money as agreement of liability and wipe it off what they think i owe, it has to be agreed that its held and not committed at this point.

I'd urge anyone considering a CTD to do their own research. I have lodged CTD's because I wanted to sleep at night, knowing that the interest is not accruing whilst HMRC take as long as they like to process my appeals. It was this latter point that clinched it for me.
The money is not in any way linked to your 'liability' whilst it is held as a CTD - you are free to redeem the CTD at any time, although that would rather negate the point, as you wouldn't then have stopped the interest accruing.

[Living life on the Edge]

Yours sincerely,







Best of luck

....and for the avoidance of doubt, don't type 'Best of luck' at the bottom of your appeal!

[manlypeeps]

Change of address for appeals

NOTE TO ALL ABOUT ADDRESS FOR APPEAL LETTERS

Have just spoken to HMRC to check the address to which appeal letters should be sent (after sending two letters to the Bedford address at the top of last year's notice). Apparently, all mail must be sent to Bootle address at the top of this year's letter.

Another trip to the post office for me then!

[ebtedge]

NOTE TO ALL ABOUT ADDRESS FOR APPEAL LETTERS

Have just spoken to HMRC to check the address to which appeal letters should be sent (after sending two letters to the Bedford address at the top of last year's notice). Apparently, all mail must be sent to Bootle address at the top of this year's letter.

Another trip to the post office for me then!

Thanks for the timely post. I am heading to the post office to send in my appeal letter.

[K12AN]

CTD

I'm also considering paying CTD...should I pay the full amount in the notices?

I'm an certain that these figures are incorrect and don't want to give extra in the hope that it will be handed back if we were to loose the appeals

[ammark]

Hi Ammar, I got this off a friend who was with Edge, he got this from Edge when it all kicked off, before they vanished that is, ive used it, still not had a reply, also my demand came from Bootle so I sent two letters both to Miss L J Stopp , one at the address below and one to the address from where the demand was sent . My PCG TAX advisor was happy with the content

Please use at your own risk , i'm not a lawyer , just following the herd!


Miss L J Stopp
Local Compliance
Personal & CGT Compliance
Chailey House
Cardington Road
Bedford
MK42 0YS

Date
Your ref
Case Ref
NI Number

Dear Miss Stopp,

I am writing to formally notify my appeal against an additional tax liability of £xxxxx assessed for the tax reporting period “ TAX PERIOD HERE” which has arisen from an outstanding beneficial loan balance.

During the 2010/2011 tax period, I was employed by Edge Consulting Limited in the capacity of a “ YOUR ROLE HERE”. My services were outsourced to an end client for an arranged fee and I was remunerated by way of an agreed salary. At this time, profit that Edge Consulting Limited generated from the outsourcing of its employees was settled into an employee benefit trust of which its employees and I as such an employee, became beneficiaries. The employees were then able to periodically request funds from the trust, this was a request made to the trustees who, at their discretion, would advance funds to the employee from the trust. The funds were paid to the employees as a loan, these loans did not attract an interest rate and were therefore regarded as beneficial to the employee. The loans have always been treated as beneficial by Edge Consulting Limited and my P11D documents support this. Furthermore, these loans all remain outstanding and can be recalled by the trustees at any time.

In consideration of the above, the outstanding EBT loan values should not be treated as income and only the relevant benefit-in-kind tax should apply. This benefit-in-kind denoted in the P11Ds should have been collected through subsequent adjustments of my PAYE tax code.

Please can you postpone the collection of the disputed tax until this matter is resolved.

I trust this should prove sufficient at this stage.

Kindly acknowledge receipt

Yours sincerely,







Best of luck

Yes, that template was sent to me before, but I believe this time, it is recommended to send a shorter appeal letter? Isn't it? And also since Edge as an entity is doesn't exist anymore, shouldn't we be sending a shorter appeal letter that doesn't mention them? Could someone advise and if possible, share the shorter appeal template that is recommended for this assessment that needs to be sent to Bootle?

Another technical point is that if Edge doesn't exist anymore, how can HMRC prove what sums were loaned off to us except for the P11D benefit amount?

[Michael J Perry FCA]

Appeal letter

As mentioned before by both myself and COJAK, it really is advisable to use my simple appeal letter template.