Talent Resource Management

[nphelp]

I left TRM March 2007 when the law changed. I was suprised they carried on.

I have an email from their payroll stating that the loan is automatically written off when I finished. But still I had the same letters as others asking me to reassign my loan to Redding Capital.

I am just going to ignore them and advise everyone to do the same. The revenue has been investigating them since March 2008. It will affect all who stated them as the employer in Personal Tax Return. I guess things aren't going well even though they hired specialist tax firm to fight their case. The last newsletter mentioned changes in the structure of their scheme, so that doesnt bode well for the fight against IR.

I have been using LTD company since and advise everyone to leave them asap.

[BrilloPad]

I have been on a loan scheme since 12th March via IOM. I am not convinced and am going limited.

But good luck to all those on the loan schemes!

[gd87]

I just got one of these letters this morning. I was convinced the "loan" got written off in 30k junks so I was surprised to see this didn't appear to be the case.

My immediate thoughts were that this was a first step in an attempt to reclaim the loan from the scheme participants but the new contract does state that the loan is to be re-paid after 10 years from the date of drawdown so I concluded that if that was the case why put such a long payback period on it. So they may be some credible reason for doing this.

However, I concluded that having the loan with a 3rd party company has to be unacceptable because they will just see it as a normal loan and will not refer to the scheme in any way.

I checked Redding on Company house but could not see it listed but I don't know if thats because its in the Channel Islands.

So in conclusion, I would like to ditch the scheme but I don't know where I stand and also I thought that if we all ditch the scheme the company will go under as presumably they need us to stay afloat ! If it goes under the insolvency chaps will come in and a full investigation will entail...

By the way, a mate of mine also in the scheme has not had his letter yet - so are they just targeting a subset of the scheme's participants

[gladiator]

TRM loan written off?

I left TRM March 2007 when the law changed. I was suprised they carried on.

I have an email from their payroll stating that the loan is automatically written off when I finished. But still I had the same letters as others asking me to reassign my loan to Redding Capital.

I am just going to ignore them and advise everyone to do the same. The revenue has been investigating them since March 2008. It will affect all who stated them as the employer in Personal Tax Return. I guess things aren't going well even though they hired specialist tax firm to fight their case. The last newsletter mentioned changes in the structure of their scheme, so that doesnt bode well for the fight against IR.

I have been using LTD company since and advise everyone to leave them asap.

I left them 18 month ago(had been with them for over two years and I've still got the letters from Redding finance even for tax year ending 2008 when I wasn't with them and on straight forward PAYE, confused! I don't have an email stating that the loan would be written off/forgiven(only a verbal-not much good). Any more light on this would be appreciated. Be nice to know the exact wording of the email were they say they will write off the loan!!

feeling pretty stupid

[elbromista]

Trm

Some interesting and worrying posts - i havent had any letter from TRM advising of a transfer of anything but have had a letter from this Redding Finance company - ive not quite been with them a year yet and i joined as a contractor colleague had been with them for 4 years or so and he said there were no probs etc - my contract actually finishes in 2 weeks and there is no renewal on offer only a permy job which im taking so i'm leaving them anyway - like advised do not sign and return these letters to Redding - let's see what happens.........

[nphelp]

As well as my email from payroll regarding the loans to be written off, I had this from initial email before I started with TRM from Craig Moss:

PayschemePlus (TRM- www.talent.gb.com) is an IR35 friendly structure that removes any issues connected to IR35...you would not be a Director of the company and 'employed'. You would be given a dividend like other composites..but not exactly! Part of your income is fully taxed (�4.85/hr or higher if needed) and the rest of your money is clear, unaffected by any taxation as we discussed. Because the money comes from Guernsey, it is unaffected by UK or European Tax laws but more importantly, we call this a loan, instead of a dividend as you would never pay tax on a loan. You even pay interest on it, to assure that it's bona fide ..which we translate into our management fee. The loan is not repayable for several reasons; 1) We receive funds from your agency - so there's no issue on finding the funds and getting the money back, 2) We write the loan off at the end of your contract, and 3) In our contract with you, it clarifies that you do not repay the loan.

I remember at the time I still wasnt happy and Craig Moss sent me a letter in a email stating the "Loan element is something you will never be asked or forced to pay back"

[elbromista]

Trm

NPhelp - ive still got that email and the most important bit - "The loan is not repayable for several reasons;"
I joined them last April after a work colleague recommeded them - he left about 6 months back so ill ask him what was said or if he's had the letter.
either way i'm finishing in a week and going permy - if it means paying back a bit more tax and NI then so be it - in hindsight i was a bit green being new to contracting.
Having read through all the bumph again and the original email i will be ignoring thisRedding finance letter as everyone who gets one should and my contract ends on the 29th although i'm finishing on the 24th to go abroad upon return i start permanent - thanks for input

[Level390]

Count me in on any Group who wishes to fight this action.

I received 2 of these Redding Finance Capital Ltd letters yesterday for the last 2 tax years but haven't been employed since October 2007.

I have read the fine print and will be interested in anyone who has taken legal advice. We are going to need all the help we can get here.

My initial letter from them stated "While the loan can only be repaid by declaring the dividend, in practice the loan is never repaid from your estate, in fact, it is not our practice to declare a dividend which would give rise to a UK taxable benefit for those who are tax resident in the UK, unless specifically requested"

and "In our contract with you, it clarifies that you do not repay the loan which is covered by the ultimate dividend"

However in searching this detail in the contract, I have not been able to find this stated specifically.

So we have been deliberately misled.

And guess what? They have never declared an "ultimate dividend" and if the Company folds, they never will.

No wonder my Accountant has been banging on about a Dividend Voucher. They have never issued one. So all he can legally state on my Tax Return was that I was not paid a salary for anything, and that all I ever received was "loan income", which, theoretically is repayable to TRS, and if you sign this Redding Agreement, to them.

In addition, by re-assigning "the loan", you become instantly liable without recourse for the stated loan. Talent Resource Management then recoups (some or part of) the loan value from Redding, and then liquidates, never declaring the "ultimate dividend" needed to repay this loan for you.

The good news is that I have nothing in writing from these sh*ts about any such Loan Agreement with TRS and it is on this basis I will be rejecting Reddings Approach... I never agreed in writing to any loan, and certainly not in writing, and therefore never received one. I will argue all I was ever paid was salaried income, and will be declaring this as such.

Check your paperwork. They can't re-assign a loan that doesn't (legally) exist.

If you did sign anything, please come back to this blog and advise of what it states and where.

HELLO!!

Don't sign the Redding Agreement.

Fight tooth and nail. This is a thinly disguised attempt to dump you right in it up to your neck.

If you sign you are accepting liability for the loan in its entirety without recourse.

It is a con

[tim123]

Argoran and everyone else.



1) We have never signed any loan agreement with the original company, therefore, the original loan does not legally exist

I haven't the faintest idea what you are referring to here, but your understanding of basic law is faulty.

You do not need to sign something to indicate agreement to specific terms of a contract.

You can do that by performance. I.e by performing your part of the proposed contract without first indicating your NON acceptance of the terms you are legally seen to have agreed to those proposed terms.

So if someone says, "here's a loan", and you take the money without first replying e.g. "no it's not, it's a gift", then in law, it's a loan, whether you have signed the accompanying piece of paper or not.

HTH

tim

[gd87]

Trm

I found my original "loan" agreement that states:

that it is to a maximum of 30k - although they claim I owe a lot more. This is where I got my "the loans are in 30k chunks that get written off" memory from

that it is repayable after five years if the dividends I have received haven't covered it. It goes on that as a shareholder that I will receive dividends that would be used to repay the loan.

Interestingly, I could see no clause that said they had the right to re-assign the loan to a third party. So, as far as I can see re-assigning the loan is in breach of terms and would constitute a new contract and hence why we have received letters to that affect but I guess we are not obliged to take the new terms and conditions.

Any thoughts anyone ?