AML 2019 Loan Charge

[catanonia]

Some info from someone going through the process

I too received an email from AML as everyone else.
I am currently in the last stages of settling with HMRC so I might be able to spread some light on this from my limited experiences. I am no expert, but here goes

I was with AML as I suddenly was made redundant and within days I got a contract and had no idea what I was doing.
Long story short I signed up to AML and was with them for 18 months between 2012-14 before I saw the light and left them to go limited company with an accountant.

AML gave HMRC all of their records some years ago for this period of time and for the last 2 years I have been trying to get this resolved.

HMRC send me a letter for 2012/13 stating that according to their records I was under a loan scheme and I owed tax. I started the process with my accountant as I knew this would happen (why i left AML) and had the money stashed away.
The next year HMRC send another letter for 2013/14 again asking for money.

I got my accountant to get the records from AML, work out what was owing taking into account mileage expenses etc that I never claimed for and eventually after wait for it 18+ months I am finally in the final stages of settlement with HMRC to pay this and get it out of my life.

For references purposes I was on £400 a day for 18 months and they wanted £38k from me for unpaid tax.
After working out expenses I never claimed such as mileage (140miles a day) I am settling on £33k with them.

There is no wiggle room, it is done according to their rules and any reductions have to be legit ones with figures. They also charge 3% interest accumulated from the unpaid tax / loans.

Here is the pain in the butt. It has taken me 18+ months to get this far, waiting for final settlement agreement letter from HMRC since the 1st letter arrived as they are so backlogged.
I wanted to pay immediately, but 18+ months....... Nightmare.

I am assuming for the next few years this is going to be a massive headache for HMRC and those stuck in this situation due to resourcing.

I strongly advise people in this situation to get an accountant / advisory who knows this area of work and use them.
I would not recommend taking yet another AML or what ever they are now called "avoidance" plan. Burying your head in the sand will not make it go away.

Hopefully I will have AML and the whole saga out of my life for good soon.

I hope this helps someone.

[phil@pmtc]

That’s disgraceful, if they claim they can negotiate a settlement then it’s an outright lie and they are stealing money on a pretence.

[surreypanic]

Sick in Surrey !!!!!!!!!

Let's be clear.

If you take HMRC's settlement there is no negotiation. It's take it or leave it and no adviser gets better rates than another.

PM me if you wish.

Hi Webberg,


fresh to the thread but been reading through as I am in the same predicament.


I really am at a loss here and struggling to reconcile the impact and how the government could play such a dirty tactic ..

.. emailed CK and AML and SP asking for a loan statement after trying to call them and the line being dead .. no response to emails.

I received the notification from Carnegie Knox 3 days ago and my head is in totally the wrong space.. I would PM you but not sure admin has bestowed that gift as yet ?

Any advice would be greatly appreciated ..

Regards and thanks ..

I will continue to monitor the thread in hope someone can identify accountants which can help..

PS my thoughts are with everyone!

[surreypanic]

sameboat ..

Hi, so what have you decided to do? I'm in the same boat as the rest of you all.

Yes - same boat here .. really need some direction if at all possible

[Claypole1971]

I’ve had the same email today and I am really concerned. Immediately smelt a rat with the Vanquish and PST options. My loans were just for one year 2012/13 but £98k so not a great spot. I’ve had no enquiries to date and done self assessment every year now - I have a Ltd company and associates. I’m about to take a job as well

My accountant is good at day to day stuff but I need some advice now and don’t know where to go - don’t trust anyone. I’m embarrassed I fell for the PBT Scheme after the EBT publicity.

Any ideas on finding a credible advisor who can work
Alongside my accountant.

Told my partner today as well, we have a 17 day old baby and weren’t together in 2012 - she was great. It can’t be that bad

[holograms]

I too received an email from AML as everyone else.
I am currently in the last stages of settling with HMRC so I might be able to spread some light on this from my limited experiences. I am no expert, but here goes

I was with AML as I suddenly was made redundant and within days I got a contract and had no idea what I was doing.
Long story short I signed up to AML and was with them for 18 months between 2012-14 before I saw the light and left them to go limited company with an accountant.

AML gave HMRC all of their records some years ago for this period of time and for the last 2 years I have been trying to get this resolved.

HMRC send me a letter for 2012/13 stating that according to their records I was under a loan scheme and I owed tax. I started the process with my accountant as I knew this would happen (why i left AML) and had the money stashed away.
The next year HMRC send another letter for 2013/14 again asking for money.

I got my accountant to get the records from AML, work out what was owing taking into account mileage expenses etc that I never claimed for and eventually after wait for it 18+ months I am finally in the final stages of settlement with HMRC to pay this and get it out of my life.

For references purposes I was on £400 a day for 18 months and they wanted £38k from me for unpaid tax.
After working out expenses I never claimed such as mileage (140miles a day) I am settling on £33k with them.

There is no wiggle room, it is done according to their rules and any reductions have to be legit ones with figures. They also charge 3% interest accumulated from the unpaid tax / loans.

Here is the pain in the butt. It has taken me 18+ months to get this far, waiting for final settlement agreement letter from HMRC since the 1st letter arrived as they are so backlogged.
I wanted to pay immediately, but 18+ months....... Nightmare.

I am assuming for the next few years this is going to be a massive headache for HMRC and those stuck in this situation due to resourcing.

I strongly advise people in this situation to get an accountant / advisory who knows this area of work and use them.
I would not recommend taking yet another AML or what ever they are now called "avoidance" plan. Burying your head in the sand will not make it go away.

Hopefully I will have AML and the whole saga out of my life for good soon.

I hope this helps someone.

This is really helpful
Did you use the same accountant that does your paper work for your limited company? My current account are saying they can't advise me so I feel really stuck

[catanonia]

This is really helpful
Did you use the same accountant that does your paper work for your limited company? My current account are saying they can't advise me so I feel really stuck

Yes, it happens that my accountant has a few people on my books in a similar situation.
Overall it has cost me about £700 in accountancy fees. That was getting the records, working out the calculations and reductions I could apply and getting the ball rolling.

[surreypanic]

Bedrock tax - anyone dealt with them?

So I looked around and this company came up http:// bedrocktax.co.uk/

This is what they have said to me ( anyone dealt with or have a view ?

I understand that you would like to explore the possibility of entering into a settlement agreement with HMRC in respect of historic awards made to you, over a ten year period, via a contractor tax planning arrangement.



Bedrock Tax offer a bespoke client specific approach to settling tax planning strategies. We know from experience that no two settlements are the same and therefore our approach isn’t process driven. Each settlement case has its own individual nuances that can’t be explored or understood by simply plugging figures into a standard workbook template. Our ongoing working relationship with senior settlement leads at HMRC along with our experienced tax trained team will ensure that you pay the lowest possible settlement figure within the confines of the tax legislation.



Settlements of this nature can be broken down into two distinctly separate pieces of work;

1. HMRC Settlement

Collate and review all relevant strategy information
Review the enquiry and assessment status
Manage all settlement correspondence with HMRC on your behalf
Draft a formal settlement approach to HMRC
Review HMRC’s calculations to ensure they are in line with current terms and our own workings
Preparation of IHT exit charge calculations
Technical review of the settlement agreement
2. Trust unwind

Manage all liaison with the trustees
Ensure any loans are written off to avoid further IHT liabilities
Draft a letter of recommendation for you to formally request that the trusts are closed post settlement
Review of the trust termination documents
Provide a briefing note detailing our suggested tax return narratives and further advice surrounding the closure / cancellation of any assessments and enquiries


Our fee for agreeing settlement will be £1,250 per tax year + vat

[LandRover]

I too received an email from AML as everyone else.
I am currently in the last stages of settling with HMRC so I might be able to spread some light on this from my limited experiences. I am no expert, but here goes

I was with AML as I suddenly was made redundant and within days I got a contract and had no idea what I was doing.
Long story short I signed up to AML and was with them for 18 months between 2012-14 before I saw the light and left them to go limited company with an accountant.

AML gave HMRC all of their records some years ago for this period of time and for the last 2 years I have been trying to get this resolved.

HMRC send me a letter for 2012/13 stating that according to their records I was under a loan scheme and I owed tax. I started the process with my accountant as I knew this would happen (why i left AML) and had the money stashed away.
The next year HMRC send another letter for 2013/14 again asking for money.

I got my accountant to get the records from AML, work out what was owing taking into account mileage expenses etc that I never claimed for and eventually after wait for it 18+ months I am finally in the final stages of settlement with HMRC to pay this and get it out of my life.

For references purposes I was on £400 a day for 18 months and they wanted £38k from me for unpaid tax.
After working out expenses I never claimed such as mileage (140miles a day) I am settling on £33k with them.

There is no wiggle room, it is done according to their rules and any reductions have to be legit ones with figures. They also charge 3% interest accumulated from the unpaid tax / loans.

Here is the pain in the butt. It has taken me 18+ months to get this far, waiting for final settlement agreement letter from HMRC since the 1st letter arrived as they are so backlogged.
I wanted to pay immediately, but 18+ months....... Nightmare.

I am assuming for the next few years this is going to be a massive headache for HMRC and those stuck in this situation due to resourcing.

I strongly advise people in this situation to get an accountant / advisory who knows this area of work and use them.
I would not recommend taking yet another AML or what ever they are now called "avoidance" plan. Burying your head in the sand will not make it go away.

Hopefully I will have AML and the whole saga out of my life for good soon.

I hope this helps someone.

Are you stating that expenses deduction was used in your negotiations with HMRC?

I was under impression HMRC would not allow such deductions.

[phil@pmtc]

I’m finding that when my clients register interest it’s taking anything from 3 to 15 weeks for HMRC to respond. I expect that as the deadline approaches the delays will increase.
If anyone wants a chat about the process feel free to PM me.
Not a sales push - I’ll just explain the process as I have for many of the users on this forum.