Edge EBT thread

[DarnEBTs]

Hi All,
I was with Edge as well. Got my appeal wording from Edge and sent it off and HMRC responded within a week. Contacted Edge and they said now just wait as letter stated HMRC are looking further into this. So basically do nothing until you hear from HMRC again. Edge did say they will provide support appropriately depending on the nature of the query. I just hope they are still around.

On another point, I contacted the Edge email and there was no reference of Redstone. This would slightly worry me i.e. no further support as it's a "different" company?

Thanks

[bedworthlad1972]

Hi All,
I was with Edge as well. Got my appeal wording from Edge and sent it off and HMRC responded within a week. Contacted Edge and they said now just wait as letter stated HMRC are looking further into this. So basically do nothing until you hear from HMRC again. Edge did say they will provide support appropriately depending on the nature of the query. I just hope they are still around.

On another point, I contacted the Edge email and there was no reference of Redstone. This would slightly worry me i.e. no further support as it's a "different" company?

Thanks

Hi there, I concur with your concern, but the fact that we can talk to them is a relief in my opinion. For now, I reserve judgement and think that they will support us. How long did it take for them to respond with the appeal letter wording? Would you mind pasting the appeal letter wording here, just to cross reference it with other postings on this site? I have sent an email to Edge, and spoken to them. They have a 48 hour backlog, however, so I have not had the appeal wording back. Not really surprised as I can imagine they are inundated with queries.


UPDATE! I have received the appeal letter template now - I am pretty impressed with the response time.

[mrs t]

Hi all Edge people, I was with Edge and received dreaded letter. I tried ringing Edge, no answer...fair enough. I am hedging my bets and taking advice from a tax advisor. Hopefully Edge will contest and it is all sorted, but I cannot rely on that.
Will try and contact Michelle today.

[DarnEBTs]

Hi there, I concur with your concern, but the fact that we can talk to them is a relief in my opinion. For now, I reserve judgement and think that they will support us. How long did it take for them to respond with the appeal letter wording? Would you mind pasting the appeal letter wording here, just to cross reference it with other postings on this site? I have sent an email to Edge, and spoken to them. They have a 48 hour backlog, however, so I have not had the appeal wording back. Not really surprised as I can imagine they are inundated with queries.

Yes, it is positive they are responsing. I guess backlog based on people who have rec'd response. Edge told me they are taking advise from KPMG. I got my reply by call pretty much in few hours after I left VM on the 0845 number. Nicely explained to me what it is etc and what next step should be. She emailed me the appeal letter straight away.

Your address

Miss L J Stopp
Local Compliance
Personal & CGT Compliance
Chailey House
Cardington Road
Bedford
MK42 0YS

Date date of ur appeal
Your ref HMRC Reference number that you rec’d on your inquiry letter
NI Number Your NI Number

Dear Miss Stopp,

I am writing to formally notify my appeal against an additional tax liability of £XXXX.XX assessed for the tax reporting period 2008/2009 which has arisen from an outstanding beneficial loan balance.

During the 2008/2009 tax period, I was employed by Edge Consulting Limited in the capacity of an “Your job role”. My services were outsourced to an end client for an arranged fee and I was remunerated by way of an agreed salary. At this time, profit that Edge Consulting Limited generated from the outsourcing of its employees was settled into an employee benefit trust of which its employees and I as such an employee, became beneficiaries. The employees were then able to periodically request funds from the trust, this was a request made to the trustees who, at their discretion, would advance funds to the employee from the trust. The funds were paid to the employees as a loan, these loans did not attract an interest rate and were therefore regarded as beneficial to the employee. The loans have always been treated as beneficial by Edge Consulting Limited and my P11D documents support this. Furthermore, these loans all remain outstanding and can be recalled by the trustees at any time.

In consideration of the above, the outstanding EBT loan values should not be treated as income and only the relevant benefit-in-kind tax should apply. This benefit-in-kind denoted in the P11Ds should have been collected through subsequent adjustments of my PAYE tax code.

I trust this should prove sufficient at this stage.

Yours sincerely,

“Your Name”

[bedworthlad1972]

Yes, it is positive they are responsing. I guess backlog based on people who have rec'd response. Edge told me they are taking advise from KPMG. I got my reply by call pretty much in few hours after I left VM on the 0845 number. Nicely explained to me what it is etc and what next step should be. She emailed me the appeal letter straight away.

Thanks a lot for this. I got exactly the same template.

[DarnEBTs]

Yes, it is positive they are responsing. I guess backlog based on people who have rec'd response. Edge told me they are taking advise from KPMG. I got my reply by call pretty much in few hours after I left VM on the 0845 number. Nicely explained to me what it is etc and what next step should be. She emailed me the appeal letter straight away.

Thanks a lot for this. I got exactly the same template.

Make sure you send your appeal recorded delivery. I sent mine on Monday and by Friday I has rec'd response from HMRC.

[Golfnut]

Just to say that I am also one of the 'Edge' people

[12345]

Hey folks....good prompt reply from Michelle at Edge...



Thank you for your email in respect of the ‘08/’09 HMRC tax demand that you have received.

We are very aware of this situation and can advise that this letter has been sent to several thousand contractors across the industry and is not exclusive to yourself. We appreciate that none the less, this letter will be very worrying for you and not something you anticipated receiving.

· It is important to understand the context of this letter and why this has been sent on such a large scale. As you are aware, the letter relates to the ’08 / ’09 tax reporting period and HMRC have very specifically targeted this period because they have four years from the end of the tax year in question to raise the assessment. If it is deemed that you took “reasonable care” in managing your tax affairs, they cannot charge any penalties, other than interest, which runs from the original due date. In the letter you have received HMRC have stated that they have made the assessment in order to protect their position and ensure that potential tax due for ’08 / ’09 is not lost because of the statutory time limits for issuing assessments. In other words, the letters have been issued to secure the option for HMRC to undertake a future challenge.

It is important to note that there has been no significant change in legislation and the position on EBT’s remains the same, they were lawful and compliant entities until the change in legislation in December 2010. HMRC have undertaken this campaign in relation to a case they are currently pursuing against Rangers FC. HMRC challenged Rangers on the basis that the EBT loans were not loans but rather salaried income, importantly, they lost the case with the judge finding in Rangers’ favour, further verifying that the loan payments are indeed recognised as such. HMRC have of course appealed this decision and it is on the hope of this appeal being found in their favour, that they have under taken this current campaign.

As always with significant approaches from HMRC, we have sought opinion on this matter from our tax advisors who are of the view that it is fundamentally important to appeal this assessment. If you do not appeal, the value of the demand becomes legally enforceable and HMRC will seek payment. If you elect to pay the demand, it is important to note that this will signal your acceptance of HMRC’s position, that the loan payments were indeed income and HMRC will then have the ability to apply the same rationale to the consecutive tax years that followed i.e. ‘09/’10 and ‘10/’11

With this in mind, please find attached an appeal letter you can utilise in order to respond to HMRC. You will need to personalise the letter with your address and complete any fields highlighted in red, we also suggest sending the letter via recorded delivery to ensure it has been received.

If you wish to discuss this matter further or if you have any questions you would like me to address, please email me back advising a convenient date and time for me to call you and I will diarise a call back. I’m sure you can appreciate that we are fielding a sizable number of queries on this so diarizing a call back you ensures my availability to speak with you.

Kind regards,

[bedworthlad1972]

Make sure you send your appeal recorded delivery. I sent mine on Monday and by Friday I has rec'd response from HMRC.

Yes will do. Cheers for the supporting posts. Great help.

[bedworthlad1972]

HMRC appeal Rangers decision to Upper Tribunal - Shepherd and Wedderburn - Knowledge