Accepting CLSO vs just paying tax due?

[tinkler]

Tax on Prior Years

I have a similar situation. I used a scheme in 06/07, 07/08 and for part of the year in 08/09.

I've been abroad several years and it is now catching up with me. I only received an assessment for the 08/09 year and responded to the the CLSO. The calculation was less than I calculated from my records, though still significant.

I haven't received an APN at all, but I am tempted to just pay the CLSO and hopefully be done with it.

What I can't seem to clarify is if after I pay it, can they then just issue an APN or assessment for the previous two years?

I have read these forums and seen various things about 4/6 years, but can't figure it out. Any help would be much appreciated!

[cliffordthedog]

Thanks webberg

So to all intents and purposes HMRC will come back to other years whether you sign the CLSO or not.

Think I'm just so mistrusting of HMRC that they would use such a clause against individuals in this situation if they were constrained by either the 4 or 6 year rules.

Regards

CTD

[webberg]

"The only mention in the original Q&A was around "possible future litigation", or that they may "include years where there is no current enquiry or assessment". Is there precedent for either of these situations? "

I just wonder whether signing up to the SO effectively signs confers the right of HMRC to look at the other years that did not have an enquiry or assesment. They would not have had that right without signing the SO

Does anyone have a view?

My opinion (and others are available) is that HMRC's settlement includes ALL the years you were "employed" by the scheme and NOT just those where there is a valid open enquiry.

If there is a closed year and you decide not to accept the CLSO, my guess is that HMRC will try to issue a discovery assessment under the 6 year provisions, meaning 2008/09 and earlier is closed but all other years will be fair game.

The ability of HMRC to use the 6 year rule for discovery is debatable.

There are a few questions kicking around the CLSO, the one above included. As I've said earlier, if you have the calculations, take them to an adviser and understand what is included, what is not, what might come back to bite you (IHT/NIC?) and whether you would be better settling just the open years.

[cliffordthedog]

"The only mention in the original Q&A was around "possible future litigation", or that they may "include years where there is no current enquiry or assessment". Is there precedent for either of these situations? "

I just wonder whether signing up to the SO effectively signs confers the right of HMRC to look at the other years that did not have an enquiry or assesment. They would not have had that right without signing the SO

Does anyone have a view?

[webberg]

Having now received a CLSO, I'm wondering what benefit there is to accepting it, compared to simply paying the tax owing from my revised tax return, which has been on appeal since 2013. Is paying that tax even an option now?

What benefit am I receiving by accepting the CLSO, which also requires signing a statement? Does signing this open me up to further investigation of other, closed, tax years?

The only mention in the original Q&A was around "possible future litigation", or that they may "include years where there is no current enquiry or assessment". Is there precedent for either of these situations?

Given that my CLSO only covers a single year of the two years I was active, I'm not confident that it covers any future investigation of those years.

Sorry, that's a lot of questions, but I hadn't seen any discussion of this particular option.

Take the CLSO and your tax returns etc to an adviser and get some advice.

[zalman]

Having now received a CLSO, I'm wondering what benefit there is to accepting it, compared to simply paying the tax owing from my revised tax return, which has been on appeal since 2013. Is paying that tax even an option now?

What benefit am I receiving by accepting the CLSO, which also requires signing a statement? Does signing this open me up to further investigation of other, closed, tax years?

The only mention in the original Q&A was around "possible future litigation", or that they may "include years where there is no current enquiry or assessment". Is there precedent for either of these situations?

Given that my CLSO only covers a single year of the two years I was active, I'm not confident that it covers any future investigation of those years.

Sorry, that's a lot of questions, but I hadn't seen any discussion of this particular option.