Talent Resource Management

[abc123abc]

I don't think anyone is suggesting, 'using a scheme provider to get out of a hole left you by another scheme provider'. I read it as seek advice from a Tax consultant who can broker an agreement with the HMRC.

As for employers liability - that sounds about right when you consider the shifty letter from Redding. I suggest you ring it again and record the entire phone call plus getting confirmation you are speaking with self assessment expert.

[TykeMerc]

Changing the topic slightly - I have a letter from TRM concerning the loan arrangement - Would it be prudent to post it here, given that it predate the current ongoing HMRC investigations?

The gist of it is that the loan is not income, yet does not require repayment (I realise that this is the crux of the "is it taxable" debate, and is likely to be shown false - It may, however, mean the difference between taking a big hit, or losing the house).

I expect HMRC would love to see a letter like that from a scheme provider, best case they would call it knowingly disguised income and subject to tax, interest and penalties and worst case is clear tax evasion which is considerable jail time.

If I was in the position of the TRM employees I would be putting sizable sums aside and quite possibly use the CTD approach as a hedge since it at least shows a willingness to come clean with the Tax Man which would mitigate the damage.

I hope for your sakes that I'm totally wrong and you all come out of this smelling of roses, but I rarely bank on good hopes and best wishes.

[malvolio]

I don't think anyone is suggesting, 'using a scheme provider to get out of a hole left you by another scheme provider'. I read it as seek advice from a Tax consultant who can broker an agreement with the HMRC.

.

Quite right - sorry. Mis-read the original!

[ASB]

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

Ok, a couple of thoughts.

- Advice received from the tax man is just that. Advice. It doesn't have to be correct. It's only their opinion (yes, I know this is all very bizarre but it is the way it works. All their publication used to contain a note to this effect and I imagine some do). If, however, you ask for a formal written opinion it will carry some weight in defence of your actions is you have acted in accordance with it.

- If they said employers liability, they are broadly speaking wrong. Did you explain that it was not a UK employer for example?. In any event it is generally the employers responsibility to deduct the PAYE, however this does not necessarily make that PAYE their liability. PAYE is simply an employer paying YOUR tax from YOUR money.

- There are a whole bunch of reasons where liability can be transferred from one party to another.

Assume for a moment that PAYE is due on a loan written off. If the employee has received the gross amount of the loan and the employer writes it off they will have to deduct that amount of PAYE from payment to the employee in the tax year. What if there is not enough payments. Do you seriously think this absolves the employee ? No, of course not. Paye is simply an exercise in paying in advance. Obviously when the employee fill in their tax return - and includes the written off loan there is a shortfall. It's the taxpayer who coughs up.

[catch22]

Just a thought, but...

Has anyone actually considered contacting HMRC to explain that they joined the scheme in good faith, but are now concerned by recent events, and that they would like to understand how best to ensure everything’s in order? (Of course, with the investigation ongoing, presumably they don’t yet know themselves what if any action will or won’t be taken.)

I don’t doubt that doing so will potentially cost a lot of money, but like many I suspect, I’d just like to put this whole sorry episode behind me and move on.

Any thoughts?

[ASB]

Has anyone actually considered contacting HMRC to explain that they joined the scheme in good faith, but are now concerned by recent events, and that they would like to understand how best to ensure everything’s in order? (Of course, with the investigation ongoing, presumably they don’t yet know themselves what if any action will or won’t be taken.)

I don’t doubt that doing so will potentially cost a lot of money, but like many I suspect, I’d just like to put this whole sorry episode behind me and move on.

Any thoughts?

If you are convinced the scheme is doomed then voluntary disclosure leads to the lowest penalties. Also, for the year just ended you could resubmit your return - so there would be no question of any incorrect return being filed.

[icemarkuk]

There is a yahoo group now been set up for anyone affected by this situation to share information.

Either subscribe through yahoo groups web process

http://uk.groups.yahoo.com/group/trm_redding/

or post to the following...

trm_redding-subscribe@yahoogroups.co.uk

[dezze]

There is a yahoo group now been set up for anyone affected by this situation to share information.

Either subscribe through yahoo groups web process

http://uk.groups.yahoo.com/group/trm_redding/

or post to the following...

trm_redding-subscribe@yahoogroups.co.uk

Good idea to try to make it a bit more private. Let us know how you get on thou.

[rsolkar]

Trm

Hi
I am new to the forum too and in the same boat as the rest of you with regards to the letter from Reading.
Having read most of the comments on the forum it would be seems that paying HRMC would better than potentially having payback all the loan after a number of years.
Could it be that TRM are just devicing a plan to stay with HRMC rules and have set Reading Financial company. I spoke to another company doing similar scheme and they said that employees get paid through a trust and the the trust would never recall the loans as it not in the employees interest. Does anyone know that if Reading Financial ltd has been set up as a Trust.
Maybe we should wait a little while before taking immediate actions to see what more information we can gather about TRM and Reading.

[catch22]

Hi
Could it be that TRM are just devicing a plan to stay with HRMC rules and have set Reading Financial company. I spoke to another company doing similar scheme and they said that employees get paid through a trust and the the trust would never recall the loans as it not in the employees interest. Does anyone know that if Reading Financial ltd has been set up as a Trust.
Maybe we should wait a little while before taking immediate actions to see what more information we can gather about TRM and Reading.

I think that's exactly what they're doing (or trying to do), but it's been handled so badly that everyone is understandably in a panic about it now! As for the trust, I'm don't think that is the case for either TRM or Redding.

I also think it wise not to rush into anything without considering all the information becoming avaiable as people look at the options and take informed advice.