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

[piebaps]

There's a helpful explanation of standstill agreements here https://www.wrighthassall.co.uk/know...ill-agreements

NB I am not connected to this firm and neither recommend them nor consel against them. They are of course recommending that people seek advice which seems like a wise move.

[Jumper]

HI there,

Your situation sounds very familiar I too had the overdrawn capital account letter, and speaking with various accountants they said I had to declare the £44K even though it was from 2015 covering approx 2 years or so...I too did not know of this bombshell hitting me. In the end I declared it as I had been working as a permie for nearly 2 years at this point no way did I have the coffers but I knew it would be better declaring than ignoring. HMRC have a thing for me and still wont let me close my company, but I am wondering....

So in the end I had to cough up 13.5K as it is declared as profit share though I never got this profit share as far as I am aware.

Now to rub salt in to the wounds my reason for coming on here is HMRC have been investigating me long term and have come up with 2015/16 and NIC payments which is total bull I have paid NICs for that year but they are now seeing if I want to go into a Standstill Agreement, looks like another 8.5K will be owed for this....has anyone else received a Standstill agreement and what are your thoughts...go with it and get it done with or hope they back down...?

I suspect that as you used your own Limited company and have since accepted liability for the additional tax, that HMRC are now seeing the payments from your scheme provider as income and therefore your Limited company is liable to pay employer NICs

[interestedparty]

Is anyone still disputing this with HMRC, i.e., are they putting forward the argument that the payments from Aston Mae/Glen Mae/Procorre were not a loan, and hence no tax liability exists. I have consistently followed this line for 6 years and everything has been quiet for over six months?

[Bombus]

Is anyone still disputing this with HMRC, i.e., are they putting forward the argument that the payments from Aston Mae/Glen Mae/Procorre were not a loan, and hence no tax liability exists. I have consistently followed this line for 6 years and everything has been quiet for over six months?

I am in a similar boat as was contracted through Glen May in 2013/4 and have received a few Self Assessement checks since then. The latest check was for my 2019 return. I have provided HMRC with a complete record of all payments made to me by Glen May way back in 2015. In a 2016 letter they stated "HMRC is pursuing enquiries into scheme arrangements by requesting information and documents from selected scheme users and will work these cases to fully establish the facts and take these cases to tribunal as necessary"

I have not heard of a case going to tribunal and suspect their case is not strong enough to take to one as they would have done it by now. I have not read this thread for a while but it seems that HMRC are using a variety of tactics now with different individuals.

[interestedparty]

I am in a similar boat as was contracted through Glen May in 2013/4 and have received a few Self Assessement checks since then. The latest check was for my 2019 return. I have provided HMRC with a complete record of all payments made to me by Glen May way back in 2015. In a 2016 letter they stated "HMRC is pursuing enquiries into scheme arrangements by requesting information and documents from selected scheme users and will work these cases to fully establish the facts and take these cases to tribunal as necessary"

I have not heard of a case going to tribunal and suspect their case is not strong enough to take to one as they would have done it by now. I have not read this thread for a while but it seems that HMRC are using a variety of tactics now with different individuals.

I know we have no definite closure on this, but I am just beginning to feel some optimism that HMRC will never take any meaningful action, whilst still feeling very nervous every time a brown envelope comes through the letter box.

[Joby]

I know we have no definite closure on this, but I am just beginning to feel some optimism that HMRC will never take any meaningful action, whilst still feeling very nervous every time a brown envelope comes through the letter box.

I'm starting to get seriously squeezed by HMRC now. Asking lots of questions both of me and my PSC.

[interestedparty]

I'm starting to get seriously squeezed by HMRC now. Asking lots of questions both of me and my PSC.

That's what happened to me, up till two or three years ago, and since then I have received vague letters every six months or so - without any indication of any actions they plan to take.

[interestedparty]

When settling my previous use of loan schemes, I was dealing with a very senior person at HMRC. I have an email from him stating that it could be good news for me since they already know the names of schemes that will have the loan charge applied and Glen May was not one of them.

That doesn't mean HMRC will not follow up on existing enquiries into Glen May but, since we have all started to pay tax on the declared profits (I already paid for 2012 in January 2018 and have just received another profit share letter from Glen May that seems to cover multiple years), that must affect the direction any enquiries go in. If we have paid tax on the calculated profit shares, I'm not sure there's a case to answer unless HMRC's query will now be how those figures were arrived at.

Hi, what's your current situation with HMRC regarding Glen May? I paid tax on my annual profit shares and still get the occasional disguised remuneration letter from HMRC, but not since February 2021 - at no stage have I accepted that I come within the loan charge scope; has your approach or outcomes been any different?

[interestedparty]

Hi, what's your current situation with HMRC regarding Glen May? I paid tax on my annual profit shares and still get the occasional disguised remuneration letter from HMRC, but not since February 2021 - at no stage have I accepted that I come within the loan charge scope; has your approach or outcomes been any different?

I should add that I received a revenue assessment for my 2012/2013 SA return in 2017, and immediately appealed it. Since then I have received a few vague disguised remuneration related letters from HMRC, but they have given no indication of any action they are planning to take, nor have they removed the assessment - it just shows on my online SA account as 'Appealed'. Do HMRC have the right to just leave me hanging, they have never offered me a review, nor proposed any follow up actions - how should I interpret their inactivity?

[eek]

I should add that I received a revenue assessment for my 2012/2013 SA return in 2017, and immediately appealed it. Since then I have received a few vague disguised remuneration related letters from HMRC, but they have given no indication of any action they are planning to take, nor have they removed the assessment - it just shows on my online SA account as 'Appealed'. Do HMRC have the right to just leave me hanging, they have never offered me a review, nor proposed any follow up actions - how should I interpret their inactivity?

Wasn't 2012/13 subject to the loan charge. That is probably reason enough for HMRC to have not rushed to process it.