9:50 AM, 19th May 2023, About 10 months ago
Mark Smith, Head of Chambers at Cotswold Barristers said …
“This (the Hybrid LLP Action Group) is not a knee-jerk reaction or an attempt to undermine other advisers’ work for the sake of it.
The Hybrid LLP Action Group arises from a number of landlords approaching us with concerns about the robustness of their structures and the correctness of the filings at HMRC and Companies House made in their names.
We cannot sit on our hands when landlords have major problems in their business structures, and these issues are compounding year after year.
It is only recently that we have been able to look under the bonnet as it were, with the landlords who have approached us and shown us in detail what has been done in their names. The Hybrid LLP Action Group and the Damages-Based Agreements we are offering to those affected are a result of this. It is not guesswork or keyboard-warrior posturing, it is real life for these affected people and many others. We would have liked nothing more than to have realised the Hybrid LLP structure worked as implemented, and no landlord would be in difficulties, but sadly that was not the case.”
Neil Patterson, Managing Director at Property118 Limited said …
“For anyone with a Hybrid LLP it is only a matter of time before HMRC open an investigation into the reporting of their accounts. I believe we have a moral obligation to warn those people. How they react to those warnings is for them to decide.”
What is the Hybrid LLP Action Group All About?
A “Hybrid” / Mixed LLP is a Limited Liability Partnership where one or more Members is a Limited Company.
Following our article “How Property118 Are Helping A Landlord To Resolve A Serious Hybrid LLP Tax Planning Blunder” we have discovered two other firms of Accountants that have created the very same nightmare tax scenario for their clients.
In 100% of the cases reported to us since we published our article the following commonalities have existed: –
If you think you might be affected it is extremely important you don’t panic or act in haste, which could make things worse for you. Below is some initial practical advice.
Within the next month or so we will be inviting all affected people who have completed and submitted the form below to attend a webinar hosted by Property118 and Cotswold Barristers with the following Agenda:-
To make it viable for us to run this webinar we need at least 50 people to register their interest. Therefore, if you know of anybody else who might be affected please let them know. If we do not receive that level of interest within the next month or so we will have to reconsider how to progress matters. Our objective at this stage is to keep costs to a minimum.
Please note that we do not have the human resources to speak to you on a one-to-one basis about your case at this point in time, but you are welcome to post questions in the comments section below and we will do our best to answer them.