Originally posted by SarahL2012
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Do you know if HMRC has discussed the details with the accounting firm who suggested the plan? Has that firm been in touch with you?
As is suggested above, professional advice is key and your first port of call should be to the firm who sold you the scheme and executed it. They may well carry insurance for costs and fees or you may be able to prove that they sold you a scheme that they knew would not work, or executed it so poorly that it had no chance of working. If so, then they should attempt to fix the problem at their cost.
ONLY if that firm is squeaky clean in terms of culpability should you need to consider going elsewhere for advice.
Presumably the other Directors/shareholders used a similar or the same scheme? If so, get in touch and see if HMRC has also picked them up.
Discuss with the scheme promoters and users your options. These will be roughly;
1. The accounting firm/you believe that you have a 75% or better chance of winning the technical argument = stand tall and go to Tribunal if necessary and don't give an inch.
2. The accounting firm is hopeless and perhaps culpable, the scheme has been struck down in other circumstances, there is no appetite amongst users to defend, i.e. 40% or less chance of winning = talk with HMRC and try to rescue a small benefit.
3. The accounting firm is solid but you've lost faith, the scheme is complicated but not been in Court before, the HMRC argument is not an open and shut case, but you think (or are advised) that confidence at litigation is between say 40% and 75% = negotiate.
Ask the accounting firm about option 1.
Ask the accounting firm if a similar case has already lost in option 2.
Ask the accounting firm the questions from the above and then seek a second opinion from another firm for option 3.
Most immediate thing to do is write back to HMRC and tell them that you disagree with their opinion, appeal any assessment they make and tell them you're seeking professional advice.
PM me if you wish.
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