Talent Resource Management

[FreakedOut]

..

[abc123abc]

I really don't mean to be pessimistic

Legal advice is not gospel - so it's really a case of putting trust in someone who you believe is an expert if you plan to carry out their advice. I think of the legal profession as a bit like the buidling industry and physiotherapists - they all talk a good game.

You could take legal advice and follow some course of action to limit the potential tax hits. What if the HMRC some time down the line (say 4 years time once they've trolled through the TRM membership) decide to investigate your filings and they're not happy? How many people can really afford to hire cast-iron legal experts and if necessary go all the way through a long drawn out legal process.. in the meantime do potential liabilities increase?

If you declare the loan, say you had it written off for whatever reason, is the tax hit on the intial loan or loan+plusTRMinterest? (not sure if this has already been answered).

Is it better to strike a deal with HMRC however unfairly so at least you can sleep more easily at night? Everyone to themselves I suppose but would it be better to cut losses now? (even if it turns out that we are on a solid legal footing which I still think we are) and then take TRM to court which would surely be far less stressful than being in the dock.

Anyway they are my current thoughts..

[MPwannadecentincome]

Were contractors for gods sake earning 400+ per day , just live like a normal person on a modest wage and save, save save !!!

slightly off topic but even some of us earning this much still have families with £1500/month mortgages, £1000/month and growing tax, utilities, car running costs (only 2 modest 2nd hand cars at that), £1200 and growing grocery bills which already exceeds a 'modest' wage through PAYE and no money left for clothes, kids, holidays, leisure etc - and we still have to provide pension, healthcare and employers NI to be comparable with a permie - so any attempt to gain net income after tax is a particular pressure for us!

oh and

[MPwannadecentincome]

I've spoken to several tax experts and the message is the same

If you delcare the loan you are going to pay Tax and NI on the outstanding amount and it will be treated as earnings for that year you declare it.

The fact is IF TRM is operating legally through some loophole . A law will be passed and at some point the scheme will be closed down .The scheme states that it is legal - it may be! . But what if the law changes! the tax man will come knocking .They will close down TRM and get a list of all its past users.

So its not a matter of IF we will have to pay its a matter of when! approaching the HMRC is always better than being investigated.

Surely this is only a problem IF and only IF the law changes AND is applied retrospectively? If not applied retrospectively simply leave the scheme to stop future 'earnings' being taxed?

[SteveO]

The others

Well I had a check with the other schemes.

Stead Solutions does not have a repayment date.

Newquay - Mt Pellier does have one. The loans get flipped every 5 years.

Probiz Contractors - The also flip the loan but not sure the length.

[JLK]

The others

Ive been hearing that other similar schemes are also being currently investigated. One of my colleagues who works for Stead has indicated that they are also under investigation.

[u9k82]

Will TRM fill in a P11d

As TRM are our employees when a loan is written off they are obliged (in the uk) to report this on a P11d.

Because TRM are a guernsey based company , will they fill in a P11d at the end of a tax year ?

I rang the self assessment helpline and explained i have a company loan being potentially written off and they simply said it was the employers liability ?!

your thoughts

[u9k82]

All

As you may be aware , I've been looking at several options over the past few weeks . I have been in contact with over 15 tax consultants and I think i have found a very good consultant

However he explained that he is not cheap and by splitting the cost of his fees amongst a group could be more cost effective and a better way to approach the HMRC , he has a good relationship with the HMRC and is willing to guide me though a few options

PM if you would like to join me and for further details

Cheers

[malvolio]

How about you simply pay the right amount of tax like everyone else? Silly thought, perhaps, but using a scheme provider to get out of a hole left you by another scheme provider does seem a trifle quixotic, especially if you have to pay serious money to do it...

And what makes you think HMRC won't simply move on to Magic Scheme #3 in pretty short order anyway? They are working through a list, after all, not trying to do it all at once.

[ContractorSeven]

As TRM are our employees when a loan is written off they are obliged (in the uk) to report this on a P11d.

TRM haven't been my employer for years. I imagine that this is true for a lot (if not most) of us.