At LTAG we have been asked a number of times what should tax-payers do where a settlement with HMRC is about to be finalised. This is especially the case since many sale and leaseback LLP’s are awaiting the judgement on Samarkand and Proteus. Alternatively, in some instances LLP’s are in a process of Alternative Dispute Resolution and again tax payers are left to wonder what they as individuals should do.
The position from LTAG is straightforward. Settlements at an LLP level position the degree of relief that may be allowed or not by HMRC. However, under certain circumstances HMRC may not be able to reclaim repayments made to tax-payers in the past irrespective of what is settled with the LLP.
Please contact LTAG to see if your circumstances will allow you to join the action group that will claim HMRC is out of time.
Tax payers who have received repayments from HMRC that are long dated and who want to confirm if HMRC are or are not in time to demand a return of those repayments should contact LTAG for a questionnaire that will assist the LTAG officers to determine your eligibility to join the action group against HMRC.
A few weeks back HMRC won a High Court case where over 150 Ingenious partners had claimed that APN’s should not be served due to a number of legal grounds.
The case is available on legal web sites but in summary HMRC won the right to disallow tax-payers the cash benefit of not not paying HMRC when cases are still under enquiry. HMRC persuaded the judge that tax-payers went into Ingenious, or should have, with their eyes open and therefore should not delay paying HMRC on the back of very long running court hearings and appeals. In effect, once a closure notice has been issued HMRC wants to be paid.
The case transcript stresses that HMRC acknowledges that Ingenious may in due course win it’s appeals and if so HMRC will repay to tax-payers their APN’s with interest.
At LTAG we believe that in certain circumstances tax-payers who are served APN’s should first determine if HMRC is in time to serve them at all.