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

[misterbees]

Have any of you (former GM) ever received a statement of your overdrawn capital account from them? I genuinely have no idea what the value is. I've two letters I can find (including the 28th March one) regarding payments against it from my profit share.

Because of this I genuinely don't know what I'd declare to HMRC if I wanted to!

Also, since GM have been wound up, is it possible the loan account has been wound up with it? Optimistic I know :-P

[administrator]

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

Account is now upgraded so you have access to the PM system

[misterbees]

Another former Glen May contractor...

Hi everyone,

A really interesting thread and a great forum. I can tell I'll be sticking around!

Admin, would you mind giving me early PM permissions so I can ping ITMark a note?

[TroyT]

HMRC potentially pursuing Rangers FC Employees

Just read this on the BBC News.
I assume their Structure was different to GMs...???
Also, HMRC going back to 2001-2010.
If I recall correctly, the rules changed somewhat in 2010 and GM kept ahead of the game and within the operating guidelines.

Further more; if we continue to declare this current and the next “final” Profit Share Figures, and pay the relevant tax due on said figures - this must surely satisfy HMRC and put this matter to bed once and for all (with regards to GM Structure Members)???

“Former Rangers players and staff paid through an offshore trust have been told they have weeks to approach the taxman over a settlement or face an even bigger bill.
Last year the Supreme Court upheld a Court of Session ruling that £47m paid to Rangers employees between 2001-2010 was liable for tax.
Now beneficiaries of the Employee Benefit Trusts (EBTs), many of whom were led to believe these were loans that would never have to be repaid, are being warned to seek "urgent advice".
BBC Scotland has seen a letter sent earlier this month by Trident Trust, a Jersey-based company, which paints a stark picture.
The letter says: "HMRC has confirmed that it will seek to recover all income tax found by the Supreme Court to be due and that, where HMRC is unable to recover the tax from the employer, it may transfer the liability for unpaid tax...to employees or former employees."

[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?

[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.

[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.

[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.

[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.

[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.