BIG GROUP

[GUD]

sign petition

Worth signing this petition if you oppose the 2019 Loan Charge. We need minimum 10,000 signatures.

https://petition.parliament.uk/petitions/218582

The personal data of petitioner will not be published. Please do not worry about your details, a big IF, shared with HMRC. Don't forget that the scheme provider is going to pass your details anyways in Sep 2019.

[webberg]

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

On the first question, call us again please.

On the second, the answer is not really. We are in the process now of executing our strategy and there will come a time when (hopefully) we will get to a point of either agreement with HMRC or agreeing to disagree and then considering the next steps. That might be 24 months from now.

In the meantime, as we continue to work on our proposal and sink more and more time and expertise into it, the cost of joining later in the process will increase. We usually give notice of any such increases and we have nothing planned at the moment.

[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

[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.

[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.

[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.

[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.

[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]

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]

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.