Employee Benefit Trusts & Contracting Schemes (an update)
Murray Holdings Group (Rangers Football Club).
This case is now due at the Supreme Court and will be heard in the first three months of 2017 and the findings should be published by the summer. We do not believe that result of the court case will have a wider impact, as HMRC has brought in further legislation since.
EBT & Contracting Schemes
HMRC have been busy of late, so if you have been paid via a Contracting Scheme, particularly if it was involved with an EBT, then you may have received a request for Settlement on the Horizon.
If so what action should you take?
2019 Employment Income Charge
HMRC brought some urgency to settlement when they issued a White Paper on 10th August 2016, which subsequently has led to the 2019 Employment income Charge.
This essentially states that if you have any loans that remain outstanding by the 5th April 2019. This will be regarded as a Relevant Step. The employer responsible for non-payment of PAYE and NIC will now have to pay up, if the employer is still in existence they will try to pass the charge to you. If the employer has ceased to exist, then HMRC will attempt to pass the bill to you.
Mistakes have been made by HMRC in the timings and accuracy of their paperwork.
In the past, there have been, incorrect dates, incorrect names and in some cases incorrect submission and drafting of the paperwork by HMRC.
One EBT House allowed their clients to avoid all tax by mistakenly making a DOTAS submission when it was not required. So, their clients escaped Millions of pounds of tax on a technicality.
We work closely with several Tax Resolution Firms, these are normally made up of people who have worked for one of the big four accountancy firms and people recruited from HMRC.
We will analyse your paperwork and submit it to the best fit Tax Resolution Firm, so if you have no other plan on the horizon, we suggest you sit down and talk to us, and we will see if we can help.
You may incur some fees but at least you will have peace of mind knowing that you are taking the right steps in dealing with HMRC, and not making any form of Settlement unless you absolutely have too.
Naturally, if you are facing a large bill with HMRC, the last thing you want to do is to pay out further fees investigating whether HMRC is correct in their submissions and requests to you.
However, our fees are relatively modest compared to the many hundreds of thousands owed by many individuals to HMRC.
It would be quite irksome I feel sure, for you to have paid off HMRC only to find later on that part of their claim may have been invalid.