Originally posted by srowell8
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Overdrawn Capital Account Scheme (Aston Mae / Glen Mae / Procorre)
Collapse
X
Collapse
-
-
Originally posted by Paralytic View Post
Are you sure you were a sole-trader, and not a one-man ltd company (PSC)?Comment
-
Originally posted by srowell8 View Post
Yes ...i had a limited company later but didn't do any work with ProcorreComment
-
Originally posted by Paralytic View Post
So you weren't a sole trader.Comment
-
Originally posted by srowell8 View PostI am a 1st time poster on here having received an HMRC disguised loan demand yesterday. I did 1 contract for Procorre in 2014 for a relatively low value over 6 months now I have a tax demand for nearly 3x the value of the money I received - surely this can't be correct/legal etc. I have a call with WTT tomorrow and seeing this thread they seem to be the people who are looking into this for a number of people. My accountant is holding me back from talking to Procorre just now. I have a couple of questions 1 - Has anyone on here actually reached a resolution with HMRC 2 - I don't fully understand the loan value as I never received this money can someone explain ? . I was a sole-trader so didn't sell my business to them thankfully. Many thanks
Webberg from WTT has posted this on LinkedIn regarding the reason for the high amount you are seeing. HTH
"The simple answer is that most 2018/19 discovery assessments claim to be in respect of the loan charge.
The loan charge is a tax specific to those who have used disguised remuneration schemes, principally therefore contractors and owners of small/medium businesses who used EBTs.
The loan charge adds to your 2018/19 income, all unpaid loans that have arisen from the use of schemes between 9th December 2010 to 5th April 2019.
So if you get an assessment and think "I've never earned that in 2018/19", think about the loans from the period above, add them to earnings in 18/19 and you'll get very close to the scary number on the assessment."Comment
-
Originally posted by GregRickshaw View Post
This may help
Webberg from WTT has posted this on LinkedIn regarding the reason for the high amount you are seeing. HTH
"The simple answer is that most 2018/19 discovery assessments claim to be in respect of the loan charge.
The loan charge is a tax specific to those who have used disguised remuneration schemes, principally therefore contractors and owners of small/medium businesses who used EBTs.
The loan charge adds to your 2018/19 income, all unpaid loans that have arisen from the use of schemes between 9th December 2010 to 5th April 2019.
So if you get an assessment and think "I've never earned that in 2018/19", think about the loans from the period above, add them to earnings in 18/19 and you'll get very close to the scary number on the assessment."Comment
-
Originally posted by srowell8 View Post
So the work i did for Procorre was outside of the limited company and the paid me directly not through the business.
Is the HMRC amount greater than the total that was billed to the client when you were with Procorre?Comment
-
Originally posted by Paralytic View Post
Ah, I hadn't realise it worked like that - sounds different to the other schemes.
Is the HMRC amount greater than the total that was billed to the client when you were with Procorre?Comment
-
Originally posted by srowell8 View Post
Yes about 4x bigger - random number ?
You've taken the right route by getting advice (call with WTT tomorrow) - the outcome may be asking HMRC where they get their figure wrong, and pointing out that you were with Procorre for that year only, and then accepting you need to pay out for the 6 monhts you were with them.Last edited by Paralytic; 4 April 2023, 16:24.Comment
-
OK chaps I had my call with WTT today and feel a lot calmer over this, I do recommend speaking with WTT they know their stuff.... not sure I am going to wait for Procorre to come back with a generic answer to be honest, its not in their interest to help so looking at other options. One is lodging an appeal myself which I hope to buy me some breathing space before deciding next steps. Either way this is going to cost but trying to lessen the amount is my goal.Comment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Autumn Budget 2024: Reeves raids contractor take-home pay Yesterday 14:11
- How Autumn Budget 2024 affects homes, property and mortgages Yesterday 09:23
- Autumn Budget 2024: Reeves raids contractor take-home pay Yesterday 09:20
- Autumn Budget 2024: Umbrella companies hit, Employer NICs hiked, and BADR heading for 18% Oct 30 16:54
- Autumn Budget 2024: chancellor’s full speech Oct 30 16:34
- RecExpo got told this about Labour’s Employment Rights Bill… Oct 30 09:10
- A limited company just got one over HMRC on VAT; here’s how Oct 29 09:24
- Top 5 Autumn Budget areas for IT contractors to tick off Oct 28 09:30
- Top 5 umbrella company expenses things to still do in 2024 under 2016's T&S rules Oct 24 08:21
- PGMOL ties up Mutuality but Control’s new low bar is a concern set to run and run Oct 23 08:10
Comment