Originally posted by PrtScn
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
HMRC Enquiries: Bedouin/Redstone
Collapse
X
Collapse
-
Last edited by Wibble1; 13 January 2015, 13:58. -
Originally posted by Wibble1 View PostRemember this was a commercial loan arrangement no different to what you'd get with a bank loan. It is something that is not declarable as interest was applied above the HMRC base rate.Comment
-
Originally posted by DonkeyRhubarb View PostIf that is true, and you are having to pay interest year in year out, isn't that going to cost you a packet over the next 10,20,30 years? Is it a fixed interest rate or variable?Comment
-
Originally posted by Wibble1 View PostA common sense approach I'm sure will be accepted by HMRC. Reply with the information you do have and be honest about the situation explaining that you are having difficulty getting the information you have not provided due to circumstances beyond your control. That Edge have vanished as a company is not your fault and that's a reasonable response. As long as you show you are co-operating. Remember the letter is just for information which they may decide to pursue or not. You are not going to get prosecuted for not being able to provide info you don't have as long as you show you are co-operating. Remember this was a commercial loan arrangement no different to what you'd get with a bank loan. It is something that is not declarable as interest was applied above the HMRC base rate. HMRC will not go after commercials loans - it's far too big. They may try an argue that this is disguised remuneration but you have a loan contract. If the terms were 100 years to repay that is a commercial decision between 2 parties and HMRC can do nothing about that under current UK law.
I thought the set up for Edge was different, hence closing down and the staff setting up Redstone.
I guess I'll just have to figure out what to put for Edge myself. As long as I'm honest what can go wrong?!Comment
-
Originally posted by Wibble1 View PostClearly you are not a user of this scheme or you'd have this information. So why are you fishing?Comment
-
DR generally interest gets rolled up and becomes payable at end of loan maturity along with principal. Duration of loan is generally 50 years with clause allowing for extension of another 50 years. Liability continues to increase.Comment
-
Originally posted by StrengthInNumbers View PostDR generally interest gets rolled up and becomes payable at end of loan maturity along with principal. Duration of loan is generally 50 years with clause allowing for extension of another 50 years. Liability continues to increase.
Sorry to be a bit morbid but what happens to the loan if someone dies?
Personally I never much fancied these loan schemes because I didn't like the idea of something going on in perpetuity.Comment
-
Originally posted by DonkeyRhubarb View PostI did wonder if that's how it worked. Presumably there's no BIK because the interest is a commercial rate?
Sorry to be a bit morbid but what happens to the loan if someone dies?
Personally I never much fancied these loan schemes because I didn't like the idea of something going on in perpetuity."I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
- Voltaire/Benjamin Franklin/Anne Frank...Comment
-
I also never liked these commercial loan ones as well. I became aware of this only when someone was trying to sell me this scheme. I was foolish to join any scheme but I guess was lucky enough to get into an EBT which was professional administered.Comment
-
Originally posted by Wibble1 View PostHMRC will not go after commercials loans - it's far too big. They may try an argue that this is disguised remuneration but you have a loan contract. If the terms were 100 years to repay that is a commercial decision between 2 parties and HMRC can do nothing about that under current UK law.Comment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment