Draft FAQ - pre-2010 loans

[lowpaidworker]

If I recall correctly, HMRC won but the tax liability was judged to be owed by the employer and not the employee. So not really a win. If HMRC win a case that they judge to be similar enough to your scenario then they would issue Follower Notices and not APNs.

Agree that you should get the person on the phone to confirm everything in writing.

true re the case or ruling. Again I am not an expert. However HMRC can transfer the liability to the tax payer.

in my case I was issued an APN for the EBT. Might be the two are not connected.

[DealorNoDeal]

DavidA can't have received an APN because it was a closed year settled by voluntary restitution and, besides, he did say "I'm not sure what an APN is". I think you'd know what an APN was if you'd ever received one!!!

I think, in his situation, all he should do is sit tight and wait to see if HMRC provide a refund.

[DavidA]

Thanks for all the responses. My paperwork is somewhat lost in the sands of time because I left the company that issued the EBT loan and then it went into liquidation. I understand the EBT scheme was being queried with the company before it went into liquidation. The next i heard was a letter in December 2018 titled Tax Avoidance and the Loan Charge, which told me I needed to pay the loan back or pay tax on it. Nothing about Accellerated Payment Notice as far as I can see. Although not quoted in the letter, when I gave them details of the scheme they told me I owed £250K. My advice from three tax advisers, including Qubic who set up the scheme, was that it would need to be paid.

After some back and forth with the HMRC the figure was revised to £160K because the National Insurance contributions should have been paid by my employer, plus the interest was waived because it was classed as voluntary restitution according to emails I received from HMRC. I paid it in October.

When I saw the news that the loan charge was successfully challenged I spoke to them on the phone. As someone said above, they were trying to make sense of the results of the review and didn't want to give me an answer as they had yet to process the implications. That sounded like it would take a few weeks and whatever was decided would be put into law in the summer. The guy I was speaking to was helpful but ultimately I don't think anyone at HMRC has all the answers yet.

[DealorNoDeal]

After some back and forth with the HMRC the figure was revised to £160K because the National Insurance contributions should have been paid by my employer, plus the interest was waived because it was classed as voluntary restitution according to emails I received from HMRC. I paid it in October.

Further evidence that HMRC deemed the year closed.

I'm pretty confident you'll get the whole amount back.

[DavidA]

Further evidence that HMRC deemed the year closed.

I'm pretty confident you'll get the whole amount back.

Well that would be nice. I'll post again when I have some news.

[DealorNoDeal]

Bumping this because some people haven't seen it.