AM Limited COP8 HMRC Investigation Letter..

[LandRover]

Just received this few minutes ago.


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AML certainly are cute on the PR front. They will be working like mad to keep existing clients happy and tell them what they want to hear....sadly I know cos they did it to me back in Apr 2011.

[nucastle]

Ask them how this complies with clause 3.82 of the Blue Book yesterday.

If the answer is "it's perfectly legal", ask them if it will survive a "purposive test".

If they say yes, ask them for a guarantee, backed by an insurance policy, that they will not only defend the scheme but will also compensate you for tax found to be due.

I had someone try to sell me a scheme involving my Ltd company, payment to a trust from it, and then the usual loans back to me. The supposed sweetener here was every contractor getting some kind of insurance certificate that saved them from any tax investigation etc etc.

Given the tales on here, bringing your own Ltd company into the mix sounds like a good way get shafted on yet another front as your Ltd is 'involved' as well as you personally.

[webberg]

I had someone try to sell me a scheme involving my Ltd company, payment to a trust from it, and then the usual loans back to me. The supposed sweetener here was every contractor getting some kind of insurance certificate that saved them from any tax investigation etc etc.

Given the tales on here, bringing your own Ltd company into the mix sounds like a good way get shafted on yet another front as your Ltd is 'involved' as well as you personally.

No power in the UK law book can "save" you from a tax investigation. If HMRC decide they want to, they will investigate.

Insurance tends to be for the costs of an enquiry. Again, I've seen that flogged and when the letter from HMRC arrives, the insurance company says, well you didn't comply with clause 43 - b - iii so forget it.

You're correct, adding a Ltd to the mix is akin to trying a concrete block to your legs as you swim the Channel.

[bleakhse]

HMRC wins the Rangers FC EBT Case

I do not see the AML JR getting us any joy in view of the Rangers FC EBT case which the HMRC won at the Court of Session in Scotland. Please see HMRC wins Rangers tax case appeal - BBC News. The news article seems to suggest that the only further appeal is to the Supreme Court, which I believe is the highest court in the United Kingdom(not Scotland). I have absolutely no legal knowledge, but it seems pretty obvious that if a precedence has been set by a higher court like this and AML are only prepared to defend the EBT up to the first-tier tribunal(FTT), I can not see any chance of getting a favourable outcome if a court higher than the FTT has set such an unequivocal precedence.

Further when Rangers initially won the case in the upper-tier appeal, AML posted an article defending their EBT in July 2014, ww w.amlimited.com/rangers-victory-endorses-aml-contractor-planning/ - Rangers A€™ victory endorses AML Contractor Planning - AMLimited. Their silence on the latest ruling by a higher court is telling.

Now that the PBT is also being challenged in the same way as the EBT, it makes sense to bite the bullet and talk directly to the HMRC for a negotiated settlement. Has anyone had any experience of dealing with HMRC directly? Are they accommodating or once you engage them you have dug yourself a big hole that you cannot get out of?

[jbryce]

I do not see the AML JR getting us any joy in view of the Rangers FC EBT case which the HMRC won at the Court of Session in Scotland. Please see HMRC wins Rangers tax case appeal - BBC News. The news article seems to suggest that the only further appeal is to the Supreme Court, which I believe is the highest court in the United Kingdom(not Scotland). I have absolutely no legal knowledge, but it seems pretty obvious that if a precedence has been set by a higher court like this and AML are only prepared to defend the EBT up to the first-tier tribunal(FTT), I can not see any chance of getting a favourable outcome if a court higher than the FTT has set such an unequivocal precedence.

Further when Rangers initially won the case in the upper-tier appeal, AML posted an article defending their EBT in July 2014, ww w.amlimited.com/rangers-victory-endorses-aml-contractor-planning/ - Rangers A€™ victory endorses AML Contractor Planning - AMLimited. Their silence on the latest ruling by a higher court is telling.

Now that the PBT is also being challenged in the same way as the EBT, it makes sense to bite the bullet and talk directly to the HMRC for a negotiated settlement. Has anyone had any experience of dealing with HMRC directly? Are they accommodating or once you engage them you have dug yourself a big hole that you cannot get out of?

The implications of the Rangers win/lose etc. has been discussed to death. There's a good summary here,

Even if the JR is successful, HMG is likely to just change the law, and you'll be round this way again. If you're looking for a common approach, which may see a fairer settlement, then join the Big Group.

[jase502]

I too had the letter and this was the response from AML...

Unfortunately your representations have not been accepted by HMRC. However you do not need to pay the APN as stated in HMRCs letter.

AML are currently completing Witness Statements to send on behalf of contractors who have had Representation Letters sent to HMRC on their behalf and/or have been in receipt of a penalty assessment, surcharge letter or other letter of this nature.

The Witness Statement is a legal document providing evidence of Hardship, this will be sent to our lawyers; Pinsent Masons who will serve your Witness Statement to the HMRC solicitor dealing with this case.

This Witness Statement will stop the enforcement of your APN letters and is accompanied by a copy of the court order (you will be sent this when you receive your unsigned Witness Statement after completion).

Please be aware that whilst HMRC are unable to enforce your APN, they are still legally entitled to apply surcharge/penalty assessments to the APN. This is something you need to consider before entering into the Witness Statement.

One of my colleagues will be in touch to compile the Witness Statement in the near future.

Once the Witness Statement has been completed my colleague will send you a PDF copy via email along with a copy of the Court order, you will be asked to sign the Witness Statement and scan the document back to AML. Please ensure this is done as soon as possible as the quicker we can complete and issue this document, the faster you have protection under the Court order.

However, it is important to note that if you were to complete a Witness Statement but then paid the APN this would appear highly contradictory to HMRC, and potentially undermine the premise of the Witness Statement given that it proves a level of hardship. This could have consequences down the line, therefore please be sure that you are not going to pay the APN in the near future before completing the Witness Statement.

[LandRover]

I too had the letter and this was the response from AML...

Unfortunately your representations have not been accepted by HMRC. However you do not need to pay the APN as stated in HMRCs letter.

AML are currently completing Witness Statements to send on behalf of contractors who have had Representation Letters sent to HMRC on their behalf and/or have been in receipt of a penalty assessment, surcharge letter or other letter of this nature.

The Witness Statement is a legal document providing evidence of Hardship, this will be sent to our lawyers; Pinsent Masons who will serve your Witness Statement to the HMRC solicitor dealing with this case.

This Witness Statement will stop the enforcement of your APN letters and is accompanied by a copy of the court order (you will be sent this when you receive your unsigned Witness Statement after completion).

Please be aware that whilst HMRC are unable to enforce your APN, they are still legally entitled to apply surcharge/penalty assessments to the APN. This is something you need to consider before entering into the Witness Statement.

One of my colleagues will be in touch to compile the Witness Statement in the near future.

Once the Witness Statement has been completed my colleague will send you a PDF copy via email along with a copy of the Court order, you will be asked to sign the Witness Statement and scan the document back to AML. Please ensure this is done as soon as possible as the quicker we can complete and issue this document, the faster you have protection under the Court order.

However, it is important to note that if you were to complete a Witness Statement but then paid the APN this would appear highly contradictory to HMRC, and potentially undermine the premise of the Witness Statement given that it proves a level of hardship. This could have consequences down the line, therefore please be sure that you are not going to pay the APN in the near future before completing the Witness Statement.

Get some Independent advice. Big Group might be a start.

[mrmonkeyboy]

Definitely second that suggestion about joining the Big Group.

Aside from it providing a more private place to chat about these types of matters, i've found a great deal of comfort with the information that available there so my stress levels have reduced and my health is starting to improve!

Until recently, I was with AML (1 APN pre-2011 and discovery notices for the post 2011 years)

[jrock]

APN penalty notice

Hi I received an APN interest penalty letter today from HMRC. I thought as AML have submitted a witness statement on my behalf that this shouldn't happen.

Is anyone else in the same boat?

[mrmonkeyboy]

Hi I received an APN interest penalty letter today from HMRC. I thought as AML have submitted a witness statement on my behalf that this shouldn't happen.

Is anyone else in the same boat?

Not yet, what year does the penalty apply to?

Will be interesting to hear the Aml response