Edge EBT thread

[dezze]

A "discovery" assessment can be made for up to 20 years from the end of the year of assessment where there has been a failure to provide information about an 'avoidance scheme'. For 2008/09 and before the tax loss must also be attributable to negligent conduct but it seems unusual for these earlier years to be addressed at this time. Maybe we are going to see more of these?

You MUST appeal within the 30 day limit and apply for full postponement. However, it is likely you will receive an Accelerated Payment Notice for these years which will release the tax for collection within 90 days. You should check that the figures assessed agree to your P11D's in the first instance.

What constitutes a failure to provide information about an avoidance scheme? Pre dotas I doubt many users of the scheme knew they had to declare anything other than what the scheme provider did on their behalf. Even then, how would they have declared they were on an avoidance scheme?

[mulberryblue]

No further discovery

What constitutes a failure to provide information about an avoidance scheme? Pre dotas I doubt many users of the scheme knew they had to declare anything other than what the scheme provider did on their behalf. Even then, how would they have declared they were on an avoidance scheme?

Thanks for your reply. I have no had any correspondence since a letter in january 2009 with regard to the tax years ending 2005 and 06 simply saying HMRC intended to enquire into these tax years. I have heard nothing until yesterday - five and half years later when they send my their assessment for these years!!!

HMRC also stated they opened enquires into 2007 in July 2009 and into 2010/11 in November 2012. I have not received any letters from HMRC with regard to these 2 years until yesterday - but how do i prove they didn't send the letters?

[dezze]

Thanks for your reply. I have no had any correspondence since a letter in january 2009 with regard to the tax years ending 2005 and 06 simply saying HMRC intended to enquire into these tax years. I have heard nothing until yesterday - five and half years later when they send my their assessment for these years!!!

HMRC also stated they opened enquires into 2007 in July 2009 and into 2010/11 in November 2012. I have not received any letters from HMRC with regard to these 2 years until yesterday - but how do i prove they didn't send the letters?

Regards part 1, I think as they have opened the enquiry, they can take their own sweet time. It could be open for ever if they so wished (so I'm told).

Part 2 - not sure how you can prove you didn't receive the letters. I presume they are sent second class and not in any form that requires receipt notification (which is extremely poor when they are talking about potentially tens of thousands). If they are saying they sent them, I'd ask for copies as you didn't get them. If they can reproduce them, then it's their word against yours that they sent them out. Sadly, I would expect they trump you even though they chuck them out and there is no consideration of the successful delivery.

Saying all that, this is IMO. I have no tax qualifications!

[varunksingh]

Even if you appeal with new powers HMRC will demand payment with APNs.
And for advise be smart and don't get into trap of some accounts on this forum.

[Rob79]

https://www.gov.uk/government/public...front-payments

[Michael J Perry FCA]

Hmrc guidance

https://www.gov.uk/government/public...front-payments

Thank you for posting this which relates to the awaited guidance on how the Follower and Accelerated Payment notices will work on practice.

Note that on 17 July 2014, the NIC Bill 2014 was introduced and this seeks to bring NIC into line with Income Tax on Accelerated Payments.

[Rob79]

The 66 page explanatory document was accompanied by a shorter notice.

This says that HMRC will write to promoters about 6 weeks before an APN is issued so that the promoters "can look after their clients".

Aside from a healthy dose of skepticism as to whether promoters have any interest in helping clients without being paid, this does suggest that there may be a bit more notice than anticipated provided that the promoter shares the information.

[IPMAN]

Latest communication from hmrc

letter received just now, haven't gone through it yet, but its settlement opportunity ...

has anyone else been on the receiving end of one, if so whats the deal?

[bstar1]

Me too

[ko1234]

yes, it's a saturday after all...