After 13 months of waiting (and fretting) I received my Settlement Offer(?) today. I'm keen to get this over with (I've nearly killed myself raising the APN monies) but have a small issue with their interest calculations. Here's why.
An investigation was opened by HMRC after I closed out my second year using the EBT Scheme in the mid noughties (I'd also left the scheme by this point). As a result HMRC withheld my tax refunds while they commenced their investigation into my use of EBT. They effectively held £15k for four years while they gave the issues some thought. Finally the money was refunded to me in 2010 with a whopping £60 interest for the period and I never heard from them again until last year.
Now they've sent me a Settlement Offer charging me £10k in interest for my underpaid tax from the mid noughties until today. They are charging me £3k for the period that they actually had the money (held specifically because of my involvement in this EBT scheme) and which upon its return they paid me £60 in equivalent(ish) interest.
My Accountant has been beyond useless so I'm planning on talking with HMRC directly. Do you think I have an argument to say I shouldn't be charged interest until post 2010 as they actually had the money for a period. They can have there £60 back!
FYI - I had maternity leave and contracted on and off after leaving the EBT scheme which is why I was due tax refunds.
An investigation was opened by HMRC after I closed out my second year using the EBT Scheme in the mid noughties (I'd also left the scheme by this point). As a result HMRC withheld my tax refunds while they commenced their investigation into my use of EBT. They effectively held £15k for four years while they gave the issues some thought. Finally the money was refunded to me in 2010 with a whopping £60 interest for the period and I never heard from them again until last year.
Now they've sent me a Settlement Offer charging me £10k in interest for my underpaid tax from the mid noughties until today. They are charging me £3k for the period that they actually had the money (held specifically because of my involvement in this EBT scheme) and which upon its return they paid me £60 in equivalent(ish) interest.
My Accountant has been beyond useless so I'm planning on talking with HMRC directly. Do you think I have an argument to say I shouldn't be charged interest until post 2010 as they actually had the money for a period. They can have there £60 back!
FYI - I had maternity leave and contracted on and off after leaving the EBT scheme which is why I was due tax refunds.
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