"chargeable to tax on the whole of the profits of your self-employment under Part 2Income Tax (Trading and Other Income) Act 2005 . The amounts described as "loans" and "fees" form part of the income arising from your self-employment"
"There are other arguments as to the possible tax consequences that relate to the payments for services provided via Rathowen Ltd. These are not properly part of the closure notice as these are not our conclusions, but we thought it proper to note that if you disagree with the enclosed closure notice and refer that disagreement to a Tax Tribunal, HMRC reserves the right to refer to alternative arguments which may led to a different amendment to your tax return. Based on the information and documents that have been received, we believe that a variety of taxing provisions could still apply. For example: We may argue that [£*****] should not have been included in your return as self-employment and the [£*****] is taxable as employment income. This is becausesection 44 Income Tax (Earnings and Pensions) Act 2003 applies on the basis that your agency contract was held with Rathowen Ltd."
"[...] the best approach for a judge to adopt in the trial of a commercial case is, in my view, to place little if any reliance at all on witnesses' recollections of what was said in meetings and conversations, and to base factual findings on inferences drawn from the documentary evidence and known or probable facts. This does not mean that oral testimony serves no useful purpose – though its utility is often disproportionate to its length. But its value lies largely, as I see it, in the opportunity which cross-examination affords to subject the documentary record to critical scrutiny and to gauge the personality, motivations and working practices of a witness, rather than in testimony of what the witness recalls of particular conversations and events. Above all, it is important to avoid the fallacy of supposing that, because a witness has confidence in his or her recollection and is honest, evidence based on that recollection provides any reliable guide to the truth."
"As your Consultancy Agreement is with Rathowen Ltd, we should be your first point of contact on all matters relating to New Assignments, Extensions to Assignments, and also any queries relating to issuing of invoices or payments"
"There are other arguments as to the possible tax consequences that relate to the payments for services provided via Rathowen Ltd. These are not properly part of the closure notice as these are not our conclusions, but we thought it proper to note that if you disagree with the enclosed closure notice and refer that disagreement to a Tax Tribunal, HMRC reserves the right to refer to alternative arguments which may led to a different amendment to your tax return. Based on the information and documents that have been received, we believe that a variety of taxing provisions could still apply. For example: We may argue that [£*****] should not have been included in your return as self-employment and the [£*****] is taxable as employment income. This is becausesection 44 Income Tax (Earnings and Pensions) Act 2003 applies on the basis that your agency contract was held with Rathowen Ltd."
"(1) An appeal may be brought against (b) any conclusion stated or amendment made by a closure notice under section 28A ... of this Act."
"[...] At the end of the day, what is at issue is the true meaning of the conclusions themselves, read in context and in the light of the entirety of the factual matrix, including the whole of the closure notice in question. If the meaning of those conclusions is clear, then those conclusions cannot be widened by reference to the consequential amendments – even if these are, in themselves, clearly and distinctly wider than the true meaning of the conclusions."
"My decision is that, following your participation in tax arrangements that sought tax advantages, your return is incorrect. There are two areas of tax law that I consider impose a tax charge and they are not mutually exclusive, although we will only charge the relevant tax and appropriate National Insurance contributions (NICs) once. [1 ToAA; no longer in issue] 2. You are chargeable to tax on the whole of the profits of your self-employment under Part 2Income Tax (Trading and Other Income) Act 2005 . The amounts described as "loans" and "fees" form part of the income arising from your self-employment. "
"[t]he scope of the closure notice was to be determined, in context, at the time it was issued, on the basis of the understanding of a reasonable recipient standing in the shoes of the taxpayer. Subsequent discussions … would not retrospectively extend the scope of the matter in question."
"In light of the budget reforms, in March 2008 the arrangement changed. Your contract with the Fernleigh Partnership was assigned to Rathowen Ltd and you continued to contract through Rathowen until31 December 2012 . Consultancy fees would then have been paid from Rathowen in accordance with your consultancy agreement. You would also be entitled to receive loans from the Fernleigh Employee Trust as you would have been included in a class of beneficiaries entitled to receive loans as you were providing services as a self employed consultant to Rathowen."
"In March 2008 as a consequence of BN66 (section 56 FA 2008) you ceased providing services to the Partnership and started to provide them to Rathowen Ltd. As part of that consultancy, Rathowen advanced you loans in the same way as loans were previously made to you when you worked for the partnerships."
"Your original consultancy agreement was with the Yellvax Partnership... the business of the partnership was assigned to the Fernleigh Partnership on6 April 2007 and then assigned onto Rathowen from the Fernleigh Partnership on13 March 2008 . No new consultancy agreement were issued when the business was assigned to different entities."