BIG GROUP

[Colfeian]

Newbie looking for some advice

Hi everyone, another one caught up in this EBT stuff, and finding my feet and gathering info....

Im writing on this thread as it seems to be the busiest.

I am new to all this as i have just received correspondence from Montpelier re the EBT scheme i was involved in.
i was employed by Newquay professional back in 2008 for just over a year. Had an EBT with Corrance which was run by Montpelier.

im trying to get my head around all this and have for the past 2 days been reading over everything on this forum and other info i could find.

so i am now in the position where Montpelier are asking what i want to do!! either repay the loan fully or in part, or contact HMRC about a tax settlement.
Well i dont have the money to repay the loan, not even sure how much it will be.
And now dont know if i will be handed a massive tax bill, which i probably cant repay either.

what i dont get is how HMRC will know i was paid in this way. Do Montpeleir have an obligation to tell HMRC who was on their books?
Will HMRC definitely come calling?
Do i try to contact them to settle?
This whole thing stinks and after reading much of this thread is questionable, and could even be considered illegal.

so what to do now.

IS BIG group the way to go to get proper legal help.
Will this spread further to things like child benefit, working tax credits etc, would they were considered to be overpaid also, and need to be repaid?

any thoughts gratefully received, and any options to consider.

also how much can BG do? can this be fought for everyone as a collective, or by individual cases only.
waiting nervously!!

cheers

[piebaps]

what i dont get is how HMRC will know i was paid in this way. Do Montpeleir have an obligation to tell HMRC who was on their books?

https://www.judgments.im/content/J1800.htm This is a published judgment of an Isle of Man Court. It shows that HMRC have been using their legal powers to obtain information. Obviously we can't be sure for your particular case, but if I was a betting man...............

[webberg]

Pause - big breath - pause again - call us.

It's easier to talk about this - no charge - than to write this up again here.

You can Google us at WTT Big Group.

[GUD]

Pause - big breath - pause again - call us.

It's easier to talk about this - no charge - than to write this up again here.

You can Google us at WTT Big Group.

Hi, I just called you today at 02034680000 (WTT consulting) but was surprised at the waiting time of 2 weeks to speak to a tax advisor/ consultant about the options available and how Big Group can help me! Further, I see a charge of £350+ VAT I have to pay to get your services. I am not sure how is it free then!

[webberg]

Hi, I just called you today at 02034680000 (WTT consulting) but was surprised at the waiting time of 2 weeks to speak to a tax advisor/ consultant about the options available and how Big Group can help me! Further, I see a charge of £350+ VAT I have to pay to get your services. I am not sure how is it free then!

PM me your number and I will call you.

We have been swamped with the recent AML news, but I'd be surprised if it was two weeks.

I don't recognise the fee you quote. Where did you get that from?

The initial call to explain to you your position and options is free, always has been and always will be.

[GUD]

PM me your number and I will call you.

We have been swamped with the recent AML news, but I'd be surprised if it was two weeks.

I don't recognise the fee you quote. Where did you get that from?

The initial call to explain to you your position and options is free, always has been and always will be.

Hi, I have sent your my details.

[bosleyrog]

EBT confusion

Not sure if this is the correct place to post, however.
Please find below a summary of my situation:-

The company I was employed by set up an EBT scheme in 2005.
The primary reason for this was based on advice from the company’s accountants. The benefits of the EBT were that the company could reduce its corporation tax liability and reward the 4 directors of the company of which I was one (Director A, non shareholder). One of the other directors worked alongside me (Director B, non shreholder), whilst the other two (shareholder directors) lived in Spain. The two share holder directors (Directors C & D) had moved to Spain 3-4 years prior leaving us to run the company with all but financial control.
The fund was created for a combined total of £400,000. Directors A & B were allocated £60,000 each Director C - £120,000 and Director D - £160,000.
If I remember, the company had made a profit of approx. £500,000, however the company was very short on cash.
In order to fund the transaction of the EBT we had to borrow £400,000 from Nat West which was used to set up the trust funds in our names (in the Isle of Man). Once the funds were set up, we had to loan the money back to the company to pay back the Nat West loan. We then became creditors to the company to the value of our individual loans. These loans reduced the company profit by £400,000 and in turn reduced the company tax liability.
Once enough cash was generated in the business, the company could pay us our loans back. At the time Director D’s directors loan account was overdrawn to a similar value of his trust loan, therefore an adjustment to his overdrawn director’s loan was made rather than him receive any cash. Over the following couple of years when cash was available, both Director B and I received £28,000 each and Director C £56,000.
The company went into administration in around Feb/March 2009.
Upon the company going into administration Director B and I were creditors for £32,000 each, Director C £64,000 (the credit being the balance of the monies we had loaned back to the company)
I now understand that changes to tax legislation may result in HMRC wanting personal tax back on the loans, this could be as much as 40% of the loan value plus interest. I could really do with advice from a tax specialist that can explain our current position / liability and instruct on how the trust funds can be shut / closed.
I am still in close contact with Director B and can contact Directors C & D (both of whom reside back in the UK now)
We have not been approached directly by HMCR, but i would guess that is coming?
What would by liability be if I tried to settle my sub-trust with HMRC then close it down?
Any advice would be really appreciated.

[webberg]

Not sure if this is the correct place to post, however.
Please find below a summary of my situation:-

The company I was employed by set up an EBT scheme in 2005.
The primary reason for this was based on advice from the company’s accountants. The benefits of the EBT were that the company could reduce its corporation tax liability and reward the 4 directors of the company of which I was one (Director A, non shareholder). One of the other directors worked alongside me (Director B, non shreholder), whilst the other two (shareholder directors) lived in Spain. The two share holder directors (Directors C & D) had moved to Spain 3-4 years prior leaving us to run the company with all but financial control.
The fund was created for a combined total of £400,000. Directors A & B were allocated £60,000 each Director C - £120,000 and Director D - £160,000.
If I remember, the company had made a profit of approx. £500,000, however the company was very short on cash.
In order to fund the transaction of the EBT we had to borrow £400,000 from Nat West which was used to set up the trust funds in our names (in the Isle of Man). Once the funds were set up, we had to loan the money back to the company to pay back the Nat West loan. We then became creditors to the company to the value of our individual loans. These loans reduced the company profit by £400,000 and in turn reduced the company tax liability.
Once enough cash was generated in the business, the company could pay us our loans back. At the time Director D’s directors loan account was overdrawn to a similar value of his trust loan, therefore an adjustment to his overdrawn director’s loan was made rather than him receive any cash. Over the following couple of years when cash was available, both Director B and I received £28,000 each and Director C £56,000.
The company went into administration in around Feb/March 2009.
Upon the company going into administration Director B and I were creditors for £32,000 each, Director C £64,000 (the credit being the balance of the monies we had loaned back to the company)
I now understand that changes to tax legislation may result in HMRC wanting personal tax back on the loans, this could be as much as 40% of the loan value plus interest. I could really do with advice from a tax specialist that can explain our current position / liability and instruct on how the trust funds can be shut / closed.
I am still in close contact with Director B and can contact Directors C & D (both of whom reside back in the UK now)
We have not been approached directly by HMCR, but i would guess that is coming?
What would by liability be if I tried to settle my sub-trust with HMRC then close it down?
Any advice would be really appreciated.

Pre funded EBT.

You can contact us via our website although strictly this is outside the contractor loan schemes.

or you can email us at our info account.

[infossa]

Pause - big breath - pause again - call us.

It's easier to talk about this - no charge - than to write this up again here.

You can Google us at WTT Big Group.

I have also emailed you with my detail. Please suggest.

[taxinglife]

Hi, l've been lurking these forums for a couple of months and just got out of my phase of denial and anger and have started to take some action. I had a good chat with Tom at WTT yesterday on settlement vs the Big Group approach. I am currently at 50/50 between settling or joining big group. I had a couple of questions which I forgot to ask and would be obliged if you can reply to.

Presumably the first step would be to apply to delay the application of the loan charge to a later date, otherwise one would be timed out. Given that the process may take many years, if the Big Group was found to be unsuccessful would interest and penalties be added to the loan charge amount? If so what ball-park %s would these be? Is there anything else that could potentially increase the liability to beyond the loan charge amount?

Also do you have a deadline for joining the Big Group? Presumably this would be the latest date for applying to defer the loan charge?

Thanks