Montpelier & Newquay 10% loan repayment demands

[jhalinson]

Money owing from Montpelier

Hi,

I did a short IT contract back in 2010 and ended up joining Newquay Professional/Montpelier (yes bad mistake).
I never got round to taking the loans so my money is still sitting with Newquay.
Does anyone think I'll ever be able to get it back or should I just write it off?

Thanks

[webberg]

Hi,

I did a short IT contract back in 2010 and ended up joining Newquay Professional/Montpelier (yes bad mistake).
I never got round to taking the loans so my money is still sitting with Newquay.
Does anyone think I'll ever be able to get it back or should I just write it off?

Thanks

Why don't you ask them?

[QUODM]

its not you its me

I am a bit confused by the questions. The thing about the NTRT verdict is that there was one scheme and two defenses. It was not about one defense to two schemes.

So NTRT were relying on Huitson and TAA. They have been forced to drop Huitson. Which was effectively dead anyway. Its quite moot as they will probably win TAA anyway. Remember this is not about TAA(where it has not gone to court yet). It is about penalties. So if TAA win, there can be no penalties. If they drop Huitson, and TAA lose, they will not get penalties. Complex isn't it?

So HMRC can still raise FNs on Rangers. And HMRC can still raise APNs on LC schemes. Any non-loan-charge investigation will require legal action. I am sure there are schemes being used now that are not loan charge.

Sorry maybe I worded the question badly. In terms of FNs I meant (unrelated to NTRT) that the year has passed where HMRC can raise FN's based on that outcome. (which is correct isn't it?)
I see what you mean about penalties now. Good for NTRT I guess but this doesn't really affect anyone else does it? I thought I read some other post that this affected the LC as well.

[QUODM]

Clarity needed generally.

I have to say that in my mind the "snippets" in the forum are consistent and certainly we try to maintain a common theme in line with our resolution plan. You may not believe in that plan - that's fine - but we are sticking to it.

Sorry if I offended, I meant the snippits are not connected in my mind - hence the seemingly random questions to plug gaps. Wasn't suggesting they weren't connected in yours!
I am trying to get PM access to message you so can join and read a bit more in BG forums (which hopefully there is more info on).

The claim that the loan charge overrides Rangers is nonsense. We've seen that from HMRC but unless they want to be held to be in contempt of Court, it's scare mongering.

HMRC could change the law post Rangers decision. They have tried to do that with the loan charge - or more accurately have said that the loan charge is new and is not changing the past (ha ha) and therefore as it comes into effect post Rangers, it's not in contempt of that decision. Good luck arguing that one.

Yes I suppose I have further trouble reconciling the court outcomes that "loans are loans" and the pre trust payment is now taxable (in a u turn decision) but actually payable by employer. Yet we have the Loan charge where loans are income AND loans and payable by employee?.... Surely a court case beckons.... (albeit too late)

[GammaMadrid]

Sorry maybe I worded the question badly. In terms of FNs I meant (unrelated to NTRT) that the year has passed where HMRC can raise FN's based on that outcome. (which is correct isn't it?)
I see what you mean about penalties now. Good for NTRT I guess but this doesn't really affect anyone else does it? I thought I read some other post that this affected the LC as well.

My understanding is that HMRC can issue FNs at any time once an enquiry is open. Often for Loans HMRc are targeting loan amounts outstanding - so they don't need an enquiry.

The NTRT TAA has no impact on anyone else. Unlike NTRT which could have an enormous impact on everyone. If HMRC win, they will never win another IR35 case. Not that they win many anyway. There could be an impact on LC, as LC may just claim they were employees all along. Then your 6 year point will come into play!

Hopefully the FTTT will be soon - its going to be fascinating.

[webberg]

My understanding is that HMRC can issue FNs at any time once an enquiry is open. Often for Loans HMRc are targeting loan amounts outstanding - so they don't need an enquiry.
.

An FN has to be issued within 12 months of a decision becoming final.

[webberg]

Yes I suppose I have further trouble reconciling the court outcomes that "loans are loans" and the pre trust payment is now taxable (in a u turn decision) but actually payable by employer. Yet we have the Loan charge where loans are income AND loans and payable by employee?.... Surely a court case beckons.... (albeit too late)

There are two sets of law to consider here and they do not necessarily coincide.

For tax law purposes, a Judge decided that as money became due to an employee from an employer, is was taxable as employment income.

For tax law purposes the money that went to the lender was YOUR money. It was then borrowed back by YOU. HMRC argue however that the money paid to the lender was the EMPLOYER's who created (in some cases) a trust.

The loan charge says that loans in such situations are taxable. There are provisions which are said to prevent double tax (I doubt they work in all circumstances) so the argument is that it's not the same income being taxed twice.

Court cases? Inevitable.

[aussieinuk]

New to all this.

Hi, I've just been caught up in this. I was with the MP loan scheme for two years 08/09 and 09/10 before I left the UK.
I haven't had a loan charge notice sent to me just yet, I'm terrified of what's going to happen and what this is going to cost, can anyone tell me whats happening or how much this is likely to cost? I'm just sick of it all and want to get on with my life.

[GreenMirror]

Hi, I've just been caught up in this. I was with the MP loan scheme for two years 08/09 and 09/10 before I left the UK.
I haven't had a loan charge notice sent to me just yet, I'm terrified of what's going to happen and what this is going to cost, can anyone tell me whats happening or how much this is likely to cost? I'm just sick of it all and want to get on with my life.

Why do you say you have just been caught up in this?

Are HMRC aware you were with the loan scheme?

MP did not always declare the loans on tax returns.

If it affects your health, or you can afford 40% of your income, then settle. Graham or Phil can help you with that.

[contractor20]

Hi, I've just been caught up in this. I was with the MP loan scheme for two years 08/09 and 09/10 before I left the UK.
I haven't had a loan charge notice sent to me just yet, I'm terrified of what's going to happen and what this is going to cost, can anyone tell me whats happening or how much this is likely to cost? I'm just sick of it all and want to get on with my life.

If you are thinking of relenting and paying them 10% to get them off your back be aware that those that have paid on the previous 10% demand say that they have not been able to get their money back so really this is nothing but extortion sanctioned by a system that protects the wealthy and the establishment but not the little guy

Also a supreme court judge has deemed most of these loans as employment so from the laws point of view they are income not loans therefore paying up on the loan is not likely to stop HMRC demands

You would do well to join WTT big group or the LCAG to gain better insight into the state of play in the UK and also by so doing the contribution will help the greater contractor community fight back against the con-men who sold these schemes in the first place and HRMC who are behaving as a law unto themselves and seem to be acccountable to no-one