AML 2019 Loan Charge

[marine1983]

Settlement calculations do not include APN amounts paid. These will appear in a later document - the settlement contract - and will be applied against the sum due. In your case, this will leave just the interest due.

Not sure what you mean by a "fine". There is no fine. There is interest but that is not a penalty or fine. HMRC will not negotiate interest but you can make a submission later if you think it is unfair in your circumstances for interest to be applied.

Dealing with the tax is one thing, but the loans are another. HMRC cannot force you to have the loans written off, but leaving them outstanding is probably not very sensible.

If the loan is written off by the trustee or lender (and some are charging frankly extortionate fees for this - vultures) then HMRC claim that IHT can arise. In the majority of cases we believe that this is incorrect.

However, if you tick the box in the settlement forms that you are having the loan written off AND IHT is due, it will be included in the calculation. Failure to pay the full amount of the calculation will render the settlement invalid.

Your choices are therefore:

1. Suck it up and pay the IHT making sure you get a loan written off
2. Elect not to tick the write off box, pay the settlement, take up write off later
3. Elect not to settle.

There are no loaded questions. HMRC are using a one size fits all checklist/call centre script approach and you have not been selected for special treatment.

If you think that you are being tricked, go and get some advice from a professional.

Make sure it's a professional with no connections with the scheme(s) you used as they will be conflicted.

Thanks for your thorough answer.

Me using "fine" is just my terminology of taxed owed. I'm pissed about the retrospective nature of this. In my world its a punishment, i.e fine. I dont understand how they've managed to get this through. If I committed murder yesterday when it was legal, they sure cant then retrospectively charge me with murder today. Justice is meant to be fair and balanced.

Does anyone know if AML still exists and are willing to settle the loans? If not, my understanding is that I actually need to find 19k to clear the total balance?

I want to settle and get this over with, they made themselves out; that if you settle it will be done with. Now they want me to pay IHT, that has never been mentioned in any previous correspondence. This is why I mention loaded questions. They keep adding stuff on.

[webberg]

Hi,

I have had through the letters with regard to me paying a settlement.

I'm a little confused by it. I owe roughly 3.7k in loan charge and around 600 in interest.

In the first paragraph they explain how they've got to the figures multiplying the months by 6, with roughly 19k in total. I was not able to provide any documentation at the time as my scheme was for the year 2008-2009, luckily I didn't stay with the scheme long.

My confusion is that they note that I've paid an APN to the sum of 3.7k which was around 2 years ago. This figure matches the calcs mentioned in the breakdown. Have they taken the APN payment as a count towards the fine, by making the account 0? Or do they also want an additional 3.7k extra?

The breakdown is not very forthcoming and doesn't show anything about the APN payment. It doesnt even let you know how to pay, it appears to be a trap to me as they also want you to do declarations about trust fund loan clearance. I'm nervous now on what boxes to tick as it could trigger IHT. My impression was that by paying and complying HMRC would leave me alone and it will be all over. They seem to want you to fall on the sword by asking loaded questions.

I hope that makes sense.

Settlement calculations do not include APN amounts paid. These will appear in a later document - the settlement contract - and will be applied against the sum due. In your case, this will leave just the interest due.

Not sure what you mean by a "fine". There is no fine. There is interest but that is not a penalty or fine. HMRC will not negotiate interest but you can make a submission later if you think it is unfair in your circumstances for interest to be applied.

Dealing with the tax is one thing, but the loans are another. HMRC cannot force you to have the loans written off, but leaving them outstanding is probably not very sensible.

If the loan is written off by the trustee or lender (and some are charging frankly extortionate fees for this - vultures) then HMRC claim that IHT can arise. In the majority of cases we believe that this is incorrect.

However, if you tick the box in the settlement forms that you are having the loan written off AND IHT is due, it will be included in the calculation. Failure to pay the full amount of the calculation will render the settlement invalid.

Your choices are therefore:

1. Suck it up and pay the IHT making sure you get a loan written off
2. Elect not to tick the write off box, pay the settlement, take up write off later
3. Elect not to settle.

There are no loaded questions. HMRC are using a one size fits all checklist/call centre script approach and you have not been selected for special treatment.

If you think that you are being tricked, go and get some advice from a professional.

Make sure it's a professional with no connections with the scheme(s) you used as they will be conflicted.

[marine1983]

Hi,

I have had through the letters with regard to me paying a settlement.

I'm a little confused by it. I owe roughly 3.7k in loan charge and around 600 in interest.

In the first paragraph they explain how they've got to the figures multiplying the months by 6, with roughly 19k in total. I was not able to provide any documentation at the time as my scheme was for the year 2008-2009, luckily I didn't stay with the scheme long.

My confusion is that they note that I've paid an APN to the sum of 3.7k which was around 2 years ago. This figure matches the calcs mentioned in the breakdown. Have they taken the APN payment as a count towards the fine, by making the account 0? Or do they also want an additional 3.7k extra?

The breakdown is not very forthcoming and doesn't show anything about the APN payment. It doesnt even let you know how to pay, it appears to be a trap to me as they also want you to do declarations about trust fund loan clearance. I'm nervous now on what boxes to tick as it could trigger IHT. My impression was that by paying and complying HMRC would leave me alone and it will be all over. They seem to want you to fall on the sword by asking loaded questions.

I hope that makes sense.

[webberg]

webberg

Many thanks for the response. I think I have seen that HMRC have extended the registration deadline so am I still able to register my interest with HMRC re a settlement and try to negotiate extended terms?

Do you know if expenses such as hotels and flights can be offset against the loans as much of my work was based away from home so I was either flying or getting the train to London and staying in a hotel 4 nights a week? On one of my assignments I rented a property for 16 months as it was cheaper that paying for a hotel and travelled back home at the weekend?

Thanks

JK

Extended the deadline? I think that they have indicated that if you don't settle by 5th April 2019, they may consider a settlement later. At this time I think that is not "official" but you have nothing to lose by sending in a request.

In terms of expenses, you have a number of challenges.

First, did you claim at the time? If not, why are you claiming now and what has changed? Are you now out of time?

Second, the settlement terms generally permit no deviation from the checklist approved. Expenses are not on that list.

Third, even if you overcome 1 and 2, are the expenses allowable. Well know actor rented a house whilst he was appearing in London, away from his home. Claimed relief - lost. Why? Because the expense of the house may have put him in a position to do the job, but was not a cost which was incurred in the performance of his duties. Essentially home to work cost and not allowable.

Last, do you have the evidence?

By all means try but prepare for disappointment.

[AFLConsult]

webberg

Many thanks for the response. I think I have seen that HMRC have extended the registration deadline so am I still able to register my interest with HMRC re a settlement and try to negotiate extended terms?

Do you know if expenses such as hotels and flights can be offset against the loans as much of my work was based away from home so I was either flying or getting the train to London and staying in a hotel 4 nights a week? On one of my assignments I rented a property for 16 months as it was cheaper that paying for a hotel and travelled back home at the weekend?

Thanks

JK

[webberg]

Repaying the loan will prevent the loan charge arising but will not prevent HMRC from claiming that tax is due on the £390k of loans.

Whether HMRC is correct or not has yet to be determined.

You will know only when either AML's promised litigation happens or another group goes to litigation or you roll over and accept HMRC's version of the truth.

repaying the loans may not avoid the loan charge if HMRC consider that it is part of an avoidance scheme. I suggest that initially at least the arrangement will attract that sort of attention. I'm not au fair enough with the detail to understand whether this charge can be defeated, but I suspect HMRC will be approaching this with some prejudice.

Repaying the loans and receiving back the cash in some form is certainly a taxable event.

My opinion therefore is that repaying the loan (5%) will not prevent a tax charge being claimed by HMRC - and to determine that you may need to join a litigation group. Having the money back will certainly trigger a charge.

My opinion is that if Vanquish and its supporters/promoters were in the UK and prepared to stand by their plan with real people and real money and real prospect of success, then they would have more credibility.

In the absence of such pillars, I would recommend extreme caution.

[piebaps]

The search facility is your friend. Type in Vanquish and then read your way through the results.

This appears to be a good starting point https://www.contractoruk.com/forums/...light=vanquish

[AFLConsult]

AML Vanquish Options Loan Settlement Query - My First Post

Good afternoon,

I have recently joined after reading many of the posts and to say I am worried is an understatement!

I have been contracting for around 5 years between 2010 and 2015 and started using AML between late 2012 and 2015. In Oct 2015 I went PAYE with a permanent role.

I have had numerous enquires from HMRC re Self Assessments and then Counter Avoidance wrote to me and I gave disclosure of all AML payments/loans. I initially received several un-paid tax demands for 2013/14 and 2014/15 which were appealed and currently on hold.

As the Loan Charge was looming AML wrote to me giving me 2 options - repay the loan or settle with HMRC. They also gave me a link to 'Vanquish Options' who they said could assist. I had no idea who they are and only recently found out they are off-shore and based in Malta, trading under the name Option 365 Limited, Vincenti Buildings, 28/19 (Suite No. 1951), Strait Street, Valletta, VLT1 432 Malta. Incorporated in Malta. Registration Number C65412.

Late last year they contacted me purporting to offer a loan settlement facility with a fee calculated at a 5% of the outstanding loan.

It all sounded to good to be true, a bit like the AML sales pitch back in 2012.

My question for today is should I consider repaying the loan via this route - The outstanding loans are around the £390k mark making my Vanquish fee circa £20K. Vanquish have said that if the loan is repaid by end of March 2019 I will have no liabilities under the Loan Charge Legislation. If I look at settling with HMRC then I look to owe them around £156k and that will bankrupt me, even if they give me 5 years to repay. To me the £20k option looks good but my biggest worry here is "Will HMRC still come after me for the outstanding tax liability"? If so I will find myself ripped off to the tune of £20k for nothing and then have to repay the outstanding loan charges?

Does anyone have any ongoing experience of this and Vanquish or could offer a suitable direction?

Thanks in advance.

JK

[ScottW]

Could do worse than start here?

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Thanks for prompt response. Much appreciated.

[webberg]

Happy New Year.

Hopefully this can be a year where we all put this carry on behind us.

I am in the process of settling with HMRC and need to get the Loans written off.

Does anybody know where the Trustees of the ‘Knox House Trustees Limited - AML PCC Partners Benefit Trust’ can be contacted?

Could do worse than start here?

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