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Cheadle’s take on tax avoidance legislation training

28th Oct 2016
Brought to you by
lifecycle

Lifecycle is a new and unique network for accountants.

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As Lifecycle’s regional breakfast seminars on the legislation and issues surrounding Tax Avoidance Schemes comes to a close, we bring you an overview of the event, its expert speakers and the knowledge they shared when the roadshow reached the Village Hotel in Cheadle.

What was it all about?

The topic of the session was Tax Avoidance Schemes - One year on from the EBT settlement opportunity. It has been widely reported that many companies used marketed tax avoidance schemes to reward key staff and that HMRC has always sought to challenge them.

Recent legislation has given HMRC greater powers to tackle tax avoidance schemes but it hasn’t always addressed historic arrangements. And whilst HMRC considers the recent EBT settlement opportunity to have been a relative success, there remain thousands of outstanding cases left to resolve. In fact, only 25% of companies that were eligible to settle have yet done so.

As HMRC’s legislation becomes increasingly stringent - and its capabilities more robust - more business owners than ever are turning to their accountants to provide advice on what is a complex and constantly changing area.

It’s here that Lifecycle’s services are able to provide specialist, non-core advice for most associated issues including settlement, time to pay, restructuring, legal services and funding.

What did delegates get from the session?

As well as providing 1.5 hours free CPD, the training session highlighted to those many accountants who attended that, whilst this is a complicated, uncertain and rapidly moving landscape, their clients do still have options.

So while concern increases among those UK businesses who have used Tax Avoidance Schemes and who have not resolved any outstanding issues, there will increasingly be a requirement for their advisers to provide assistance. By having a thorough understanding of these associated issues - and therefore providing the most effective solutions - accountants become truly trusted advisors.

Who were the expert speakers?

Firstly, Lifecycle’s consultant tax specialist Chris O’Hara looked at the current situation in terms of Employee Benefit Trusts (EBTs) and Employer-Financed Retirement Benefits Schemes (EFRBs). He reviewed the supposed success of the recent settlement opportunity, spoke of the lessons learnt and provided an update on the current HMRC position and the measures it has taken to tackle the tax avoidance issues - including the appointment of what is now a 1500-strong team working within HMRC’s Counter Avoidance Directorate (CAD).

Then Andrew Gregory, the head of Leonard Curtis Legal - the legal services division which is available to members of the Lifecycle network - took a look at some relevant, recent legal cases in the field of tax avoidance.

During his case law review, he highlighted a number of Judicial Review applications made - and refused - in respect of Accelerated Payment Notices (APNs). These included cases brought by taxpayers such as Rowe and Dunne – showing the arguments put forward, the judges’ responses and updates on those who appealed.

In conclusion, it is clear that from a legal perspective, HMRC will continue to challenge tax avoidance schemes until all cases are resolved in accordance with the law and via ever-tightening legislation.

Chris O’Hara then discussed the options available to accountants’ clients if they need to deal with such schemes - sharing advice and best practice that could be taken away and passed on.

And then finally, Leonard Curtis Business Solutions Group’s Julien Irving provided an update on the options available to clients if they are unable to pay. He explained how HMRC is still willing to consider time to pay arrangements where payment cannot be made in full. He also took a look at HMRC’s attitude in cases where insolvency cannot be avoided, including the risk of personal liability for directors.

Next events in Yorkshire

For those Yorkshire-based accountants who are members of the network, there are still two local live events to attend.

The penultimate of this series will take place at the Holiday Inn Rotherham / Sheffield on Tuesday 1st November.

Lifecycle’s training team will then move to Leeds the following day when, on Wednesday 2nd November, accountants from in and around the city will be able to learn more at Leonard Curtis Business Solutions Group’s offices on Park Row.

This seminar is the first in a year-long programme that Lifecycle is delivering free of charge to its member accountants. The series - which will run across the UK with topics already confirmed until September 2017 - includes tax and accounting updates, as well as a session on anti-money laundering legislation.

These breakfast seminars are free to Lifecycle members and are just one of the many benefits that accountants can enjoy after registering for the free of charge network.

There is still much guidance that you can give your clients on dealing with these issues. Register here to enhance your service offering by finding out more at one of the Yorkshire events.

About the Lifecycle network

Lifecycle is a unique network for accountants - provided by the Leonard Curtis Business Solutions Group.

It provides member accountants with a comprehensive range of specialist services – and the expert support required - to improve their client offering at every stage of a business’ lifecycle. From company formation to cessation and all stages in between.

Lifecycle is free to join and also offers members many additional benefits. These include eligibility for a highly competitive Professional Indemnity insurance scheme, a regular programme of free training and education and discounts on products and services relevant to their business and clients’ needs.

Services offered by Lifecycle include: Company secretarial and formation; equity finance for SMEs; debt advisory for SMEs; personal debt advice; corporate restructuring, insolvency and cessation; debt finance for SMEs; cashflow maximisation; property solutions and legal services.

For more information on Lifecycle click here.

For further information, please visit www.lclifecycle.co.uk and to become a member click here or call for free on 03300 242 333.

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