HMRC settlement Deadlines/delays and the LC HMRC settlement Deadlines/delays and the LC - Page 3
Page 3 of 47 FirstFirst 1234513 ... LastLast
Posts 21 to 30 of 461
  1. #21

    More time posting than coding


    Join Date
    Jan 2018
    Posts
    260

    Default

    To clarify -- HMRC can only come back for more if you have open enquiries (or the year is within the timeframe for them to open one)

  2. #22

    Still gathering requirements...


    Join Date
    May 2018
    Posts
    66

    Default

    Phil, what is the definition of an open enquiry?

    In my case, my LTD co submitted relevant accounts for year ending 2012/2013, which included the EFRBS payment. The LTD co issued me a loan in late 2013. My 2013/2014 self assessment was submitted Jan 2015 but of course contained only details of income, nothing to do with the loan.

    HMRC sent a letter to my LTD co in 2014 saying they are querying the EFRBS contribution as they believe it is income. My LTD co was registered at my accountants address so I did not see this letter at the time (if that makes any difference). My accountant (the scheme promoter) responded to this letter without informing me, giving all details of the trust and payments made.

    Roll forward to mid 2017 and HMRC send me a letter titled "Notice of decision", informing me that my LTD owes Class 1 NICs for the income they deemed I received. The LTD co is in Liquidation at this point. The IP handling the liquidation is forwarded the letter and says it is not of consequence as the company is in Liquidation and has no funds. A few months later the LTD co is dissolved.

    Do either of the above letters (in particular the second one to me) signify an open enquiry? Neither is questioning any of my own returns, only those of a LTD company which no longer exists.

    Apologies if I am cross posting here, as I have a similar question here: https://forums.contractoruk.com/hmrc...an-charge.html

    But it's still not clear to me if this is an open enquiry or not. The reason I am asking the question is that I want to know if interest will be charged if I choose to settle the loan amount.
    Last edited by RickG; 18th May 2018 at 20:52.

  3. #23

    More time posting than coding


    Join Date
    Jan 2018
    Posts
    260

    Default

    Quote Originally Posted by RickG View Post
    Phil, what is the definition of an open enquiry?

    In my case, my LTD co submitted relevant accounts for year ending 2012/2013, which included the EFRBS payment. The LTD co issued me a loan in late 2013. My 2013/2014 self assessment was submitted Jan 2015 but of course contained only details of income, nothing to do with the loan.

    HMRC sent a letter to my LTD co in 2014 saying they are querying the EFRBS contribution as they believe it is income. My LTD co was registered at my accountants address so I did not see this letter at the time (if that makes any difference). My accountant (the scheme promoter) responded to this letter without informing me, giving all details of the trust and payments made.

    Roll forward to mid 2017 and HMRC send me a letter titled "Notice of decision", informing me that my LTD owes Class 1 NICs for the income they deemed I received. The LTD co is in Liquidation at this point. The IP handling the liquidation is forwarded the letter and says it is not of consequence as the company is in Liquidation and has no funds. A few months later the LTD co is dissolved.

    Do either of the above letters (in particular the second one to me) signify an open enquiry? Neither is questioning any of my own returns, only those of a LTD company which no longer exists.

    Apologies if I am cross posting here, as I have a similar question here: https://forums.contractoruk.com/hmrc...an-charge.html

    But it's still not clear to me if this is an open enquiry or not. The reason I am asking the question is that I want to know if interest will be charged if I choose to settle the loan amount.
    cant be 100% without seeing it but, unfortunately yes, it sounds like it is an open enquiry. If you wish to send it me via email I can confirm (feel free to anon it).
    phil

  4. #24

    Nervous Newbie


    Join Date
    Apr 2018
    Posts
    9

    Default

    Quote Originally Posted by phil@dswtres View Post
    To clarify -- HMRC can only come back for more if you have open enquiries (or the year is within the timeframe for them to open one)
    Quote Originally Posted by phil@dswtres View Post
    There's a lot of understandable worry and panic as deadline number 1 approaches. So I'm posting this to calm fears on the same queries I keep hearing

    These are 100% correct. HMRC will tell you themselves and i've got it in writing from them also.


    1.You only need to register interest by 31 May. No loan details are required to be given.

    2.Loan details to be provided by end Sep deadline.

    Now, if those 2 things are done, then your obligations are 100% complete at that stage,

    The loan charge will NOT kick in due to HMRC delays. As long as you/your advisor meets the deadlines you are 100% ok to settle.
    When you receive the settlement deeds, there will be a deadline on them to sign. As long as that deadline is met, you are fine. You will settle and not be affected by the LC.

    Also, whilst on the subject, if you're unaware, they have confirmed that the loan charge isn't final and they could come back for more, such as interest. (which realistically means they 100% will come back)

    Finally - and I hope the mods don't mind me posting this part but its purely to help. All clients of mine will receive an email at least 24 hours before the deadline at end of this month confirming they are definitely registered with HMRC.

    Hi Phil

    Just to clarify... Once we registered for settlement, shall we wait for HMRC to get bacl to us with the statement of we should provide details of loans by ourselves first and only based on Info provided by us, the amount to pay will be counted by HMRC..??

    Many thanks

  5. #25

    More time posting than coding


    Join Date
    Jan 2018
    Posts
    260

    Default

    Quote Originally Posted by Mm11 View Post
    Hi Phil

    Just to clarify... Once we registered for settlement, shall we wait for HMRC to get bacl to us with the statement of we should provide details of loans by ourselves first and only based on Info provided by us, the amount to pay will be counted by HMRC..??

    Many thanks
    Upto the individual. Personally I’d wait until as long as possible then, if deadline approaching provide the details. However some people just want this over with so clearly they would be better off providing details early. On the whole - just ensure that one way or the other you provide details by the sep/Oct deadline

  6. #26

    More time posting than coding


    Join Date
    Apr 2016
    Posts
    394

    Default

    Quote Originally Posted by phil@dswtres View Post
    To clarify -- HMRC can only come back for more if you have open enquiries (or the year is within the timeframe for them to open one)
    Shouldn't that be "or the year is within the timeframe to open an enquiry or raise a discovery assessment (DA)".

    Years 2014/15 onwards are still at risk of a DA.

    Be aware, if you have unprotected years from 2014/15 onwards, HMRC could still protect those years making you liable for interest.

  7. #27

    More time posting than coding


    Join Date
    Jan 2018
    Posts
    260

    Default

    Quote Originally Posted by Loan Ranger View Post
    Shouldn't that be "or the year is within the timeframe to open an enquiry or raise a discovery assessment (DA)".

    Years 2014/15 onwards are still at risk of a DA.

    Be aware, if you have unprotected years from 2014/15 onwards, HMRC could still protect those years making you liable for interest.
    If the return made it clear the scheme was used (so for example - a Dotas number included), they would have their work cut out justifying a s29 discovery.

  8. #28

    More time posting than coding


    Join Date
    Apr 2016
    Posts
    394

    Default

    Quote Originally Posted by phil@dswtres View Post
    If the return made it clear the scheme was used (so for example - a Dotas number included), they would have their work cut out justifying a s29 discovery.
    Absolutely. There's even case law to back this up.

  9. #29

    More time posting than coding


    Join Date
    Jan 2018
    Posts
    260

    Default

    Quote Originally Posted by Loan Ranger View Post
    Absolutely. There's even case law to back this up.
    Yep, though just made me think- as we well know they do like to ignore case law!

  10. #30

    Nervous Newbie


    Join Date
    May 2018
    Posts
    14

    Default Totally Confused!!

    I was requested in 2017 to complete SA tax returns for 13/14 and 14/15 by HMRC as they believed I had disguised remuneration in the form of loans. I completed these and declared the loans under additional income then paid the amounts due for each year. For the years 15/16 and 16/17 I had written confirmation and verbal confirmation that I did not need to complete SA's for these years even though I was a member of a scheme so I have the following questions?

    1 Given that I have not had any further letters from HMRC regarding 13/14 and 14/15 am I safe to assume that this is now sorted given that an accountant said that 13/14 might even have expired by now.

    2 I assume HMRC will charge people based on their P11D and P45 figures so if the P11D figure is different to what was received how will they ever know and successfully charge people especially if they have not requested people to complete SA's for any additional years

    3 What is the likely chance of offsetting expenses on your SA against each of these years such as mileage, subsistence, they fee's charged by the scheme provider as an accountant told me that I am entitled to claim mileage\subsistence and that my employer\scheme provider was wrong to tell me that this was not allowed.

    4 Given that all this was a result of the Rangers case whereby the Supreme Court ruled that Rangers as the employer was responsible for paying the tax and NI due then surely the contractors are not liable to pay the tax and this is all scare tactics by HMRC. I understand that BIG Group are looking to possibly challenge based on this argument.

    5 Last question. Any merits in sueing the scheme provider for fraud and misrepresentation of their goods and services?

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •