HMRC Enquiries: Bedouin/Redstone

[Wibble1]

Re: The 12/13 request for documents
Anyone figured out what answers to give for the period of time up until Edge became Redstone?

Redstone have reminded on several occasions that they are no longer Edge (despite being comprised of the same staff). So they are unable/unwilling to give any assistance.
I think I'm screwed. I have no idea how to answer the questions from an Edge perspective and I only have a couple of days left on my extension.
Some guys on here appear to have been granted extensions until early Feb. I have to get my details in this week.
Have may loads of calls, sent emails. I'm no closer to figuring out how to answer these questions.

A 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.

[DonkeyRhubarb]

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.

If 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?

[Wibble1]

If 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?

Clearly you are not a user of this scheme or you'd have this information. So why are you fishing?

[PrtScn]

A 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.

Is that the same thing that Edge were using before they became Redstone?
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?!

[centurian]

Clearly you are not a user of this scheme or you'd have this information. So why are you fishing?

Have a look at some of the thousands of posts that DR (Donkey Rhubarb) has posted on this forum over many, many years - and you should you find your answer...

[StrengthInNumbers]

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.

[DonkeyRhubarb]

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.

I 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.

[cojak]

I 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.

HMRC Scheme Enquiries on Deceased Contractor

[StrengthInNumbers]

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.

[Boobetty]

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.

How certain are you about this? EBT schemes also had loan contracts so I really don't see the difference. EBT users also have a legal obligation to repay the loans granted to them. The argument presented by HMRC is that the loans are artificial, are not - in reality - repayable, and therefore taxable as income. I'd be stunned if HMRC agreed with your distinction, especially as interest is rolled up and never paid. Hate to be the bearer of bad news and all that, but there it is .