Overdrawn Capital Account Scheme (Aston Mae / Glen Mae / Procorre)

[DCContract]

Has anyone made any progress yet?

Interested to know if anyone has taken any independent legal advice on this yet or whether anyone has successfully applied for entrepreneurs relief having taken up Procorre on their offer to acquire your company?

Also interested in the webinar if someone can ping me a link to it.

Thanks

[Marsh59]

It's audio only.

(I'm told I have a face for radio).

PM me and we'll see what can be done.

I would be interested in the Webinar as well, is it available?

[webberg]

Apologies for the delay.

The recording of our recent webinar is now available.

I appreciate some of you have asked for a copy of the audio and I can supply that if you email me.

[email protected]

[kiwibrit05]

Another ex-Glen May LLP partner here, with concerns re HMRC/tax and looking to work together with others on HMRC assaults re perceived tax avoidance.

Worked SE through Glen May 2011-12, 12-13 and a fraction of 13-14. Have had HMRC letters for tax in these 3 years since Feb 2016, all appealed successfully - but only on hold - not closed out. So it just hangs and never feel free from HMRC envelopes in the mailbox, even now living in NZ.

Also had one profit share of GBP23k declared by GM in 2016 (for project completed in 2011-12 year) - totally out of the blue - which I've had to pay tax on, worked through Burnside for my return.

Qs for me:
1. How water tight is Glen May's structure to HMRC?
2. What is HMRC's track record in these situs?
3. Do successful appeals just sit there forever?
4. What history/chances of HMRC pursuing... going to court...?
5. How does the 2019 loan charge affect earnings under Glen May structure and has anyone had position from GM on the loan charge?
6. Are other contractors in similar positions banding together to work through this - esp. the RETROSPECTIVE loan charge? Surely that's against natural justice

Grateful for thoughts and inclusion in any groups banding together.

[hungouttodry]

Another ex-Glen May LLP partner here, with concerns re HMRC/tax and looking to work together with others on HMRC assaults re perceived tax avoidance.

My position is very similar, except I am not in NZ.
I didn't receive a profit share letter until recently, mine applies to y/e 2018 and is for £67k. I have no clue how I can find the funds to pay the tax on that.

[hungouttodry]

For people who have recently (ie since 6 April 2018) received a GM letter, surely this letter was received in this tax year ie 1819... therefore tax is payable 31 Jan 2020? Not 2019?

Mine was dated 28th March 2018.

[bazinga]

Hi,

I've copied this entire thread into a word doc and am slowly making my way through the 100+ pages so I don't end up asking anything silly or repeating a question that was already answered. In the meantime however, I'm going to be slightly ignorant and ask my questions as I have received a letter from HMRC saying that they are investigating as I was part of a tax avoidance scheme, but no action is due (yet).

Context
I was introduced to Aston Mae who set me up with Procorre. I was always assured that their scheme was not a tax avoidance scheme, and that they would take care of any HMRC taxes as the structure was a partnership. I stuck with them for a year, then made a clean break at the end of the 1st year of company trading as I was not happy with the way things were running at Procorre and my doubts got the better of me. I changed accountants, and broke my partnership with Procorre (by stopping payments and writing to them to terminate the partnership agreement), but kept the ltd company running. In case if it matters, I was a member during almost all of 2016 (not putting the exact months to avoid being identified).

Questions:
1. I was thinking that I should write an email to all those involved (i.e. Aston Mae, Procorre, the Accountants) and ask them what their position is and how they intend to rectify this issue. Is this a good idea?

2. Is there any development in this thread that I should be aware of?

3. I have been sent a profit share breakdown from Procorre that I would need to declare on my self assessment. They stated that I should declare it for the current tax year (i.e. when I received the letter) rather than backdate it for the year I was part of the partnership (which extended over two personal tax years). Should I go ahead and pay this as personal tax is separate to company tax? Or should I fight it out with Procorre first (as part of point 1)?

4. If HMRC decide that I need to pay up, would I just have to pay up the CT that would have been due via the traditional (minus the CT that had already been paid) plus a penalty?

5. As Procorre took about 18% of each partnership contribution as their fees, would there be any way to limit the liability to HMRC to prevent being too much out of pocket?

6. Is there anything that can be done in this stage (HMRC investigation, but no action due) to help?

7. If Procorre start acting funny, is there any way to bring a legal challenge to Procorre considering they are registered offshore?

8. Is it worth joining the whatsapp group if I am only waking up to all of this? If so, could you please send me the whatsapp group invite link via PM?

Thanks in advance.

[Fred Bloggs]

Playing devil's advocate for a second. If you did manage to get an award in a court against these people, how would you go about getting them to pay damages or put things right for you? Sorry, I can't see that plan coming to much and sounds rather like a money pit to me.

[Joby]

In the same boat...

...I'm an ex GM and now Procorre partner and I turned down the acquisition offer last September (2017). I have never received a profit share notification (from either Partnership) and today I received a letter from HMRC about the 2019 loan payments legislation. I have been contemplating leaving the partnership for some time now and, as my current contract is up at the end of the month, I think that now's a good time to do so. I think that some of the previous comments about Procorre having cash flow problems may not be too far from the truth. For example, I have received 2 consectutive emails from them (June and July) asking when I was going to make a payment. Even if I do leave, I know that this is not the end of it and there's trouble ahead.

Oh, and I'd be grateful for PM rights, please.

[Joby]

[QUOTE=bazinga;2576729]

I'm going to be slightly ignorant and ask my questions as I have received a letter from HMRC saying that they are investigating as I was part of a tax avoidance scheme, but no action is due (yet).

Was this letter under the guise of the 2019 loan charge legislation by any chance?