Originally posted by MLeggsy
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AML 2019 Loan Charge
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Hi all,
I was with AML for couple of years and ive just settled, took about 3 months from beginning to end.
HMRC aren’t negotiating at all on the amount unfortunately. However my advisor (Phil@dswtres from this forum who I was v happy with) did negotiate payments to be spread over 30 months. After looking at the costs of settlement v the charge the option of settlement was obvious for me.
Id recommend that people take their time to thoroughly understand the situation.
Also, its possible to reduce the amount payable to HMRC if you have spare cash to pay into a pension (an advisor will explain more).Comment
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Pension
Originally posted by CarryC View PostHi all,
....
Also, its possible to reduce the amount payable to HMRC if you have spare cash to pay into a pension (an advisor will explain more).Comment
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I've been taking stock of how I expect to pay the 70/80k above my head.
I'm hoping to put £30-50k on my mortgage and withdraw some equity. The rest 30k slush and whatever I can save by tightening my belt, to the absolute penny. I live an already simple life, but I've made it my mission to save another 5-10k before Q1 when my payments will likely start.
Anything on top of that from leftfield I hope I can pay over a reasonable term of 36 months.
I'll be selecting someone, probably WTT, to file my papers and keep the wolves at the door.
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Over the last 2 days I've honestly had so many thoughts, madness, grief, sadness, mourning, confusion, pity, questioning... my mind did begin to wonder in to dark area's and what i expect was the beginnings of some form of depression, but through talking to my wife [she's aware and complicit, has been since 2011], telling my parents [i'm 35 for the record] and also telling my 5/6 close lifelong friends I feel much better, more rationale and whilst not happy, I know I can pull through this with my family intact and with a nagging fear of "what's that letter" that I've had for the last 5 years biting me.
I suspect that once I've agreed settlement and began on the road to make things right I shall feel a sense of relief.
Despite my sorry state this week, I still have no regrets of using such a mechanism despite being outlawed years later. It allowed me to save for a house deposit in a way that would have been frankly impossible at the time, anybody mortgaging as a contractor will know just how hard it can be. It gave me a step up... now my job is to remain on that step, and not to slip back too far.
I really appreciate this forum though and those sharing accounts, perspective is utterly important... whoever you are reading this, you're not alone and I will talk to you if you feel yourself having thoughts you can't identify with - I'm in no way a professional, I have nothing for sale, just words.Comment
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Originally posted by ozzyo99 View PostI've been taking stock of how I expect to pay the 70/80k above my head.
I'm hoping to put £30-50k on my mortgage and withdraw some equity. The rest 30k slush and whatever I can save by tightening my belt, to the absolute penny. I live an already simple life, but I've made it my mission to save another 5-10k before Q1 when my payments will likely start.
Anything on top of that from leftfield I hope I can pay over a reasonable term of 36 months.
I'll be selecting someone, probably WTT, to file my papers and keep the wolves at the door.
-----------------------
Over the last 2 days I've honestly had so many thoughts, madness, grief, sadness, mourning, confusion, pity, questioning... my mind did begin to wonder in to dark area's and what i expect was the beginnings of some form of depression, but through talking to my wife [she's aware and complicit, has been since 2011], telling my parents [i'm 35 for the record] and also telling my 5/6 close lifelong friends I feel much better, more rationale and whilst not happy, I know I can pull through this with my family intact and with a nagging fear of "what's that letter" that I've had for the last 5 years biting me.
I suspect that once I've agreed settlement and began on the road to make things right I shall feel a sense of relief.
Despite my sorry state this week, I still have no regrets of using such a mechanism despite being outlawed years later. It allowed me to save for a house deposit in a way that would have been frankly impossible at the time, anybody mortgaging as a contractor will know just how hard it can be. It gave me a step up... now my job is to remain on that step, and not to slip back too far.
I really appreciate this forum though and those sharing accounts, perspective is utterly important... whoever you are reading this, you're not alone and I will talk to you if you feel yourself having thoughts you can't identify with - I'm in no way a professional, I have nothing for sale, just words.
Ozzyo - thanks, great post. Will be in touch.Comment
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Originally posted by luxCon View PostCarryC, Could you please give an insight in to how this can help the amount on the settlement of the prior years?Comment
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Originally posted by AnotherJohnDoe View PostWhat puzzles me about all this is how to deal with two separate tax issues
Whilst AML are in litigation I don't know if you can withdraw from that appeal and settle the original bill with HMRC
If you can then it seems like you'd have to accept their own tax decision and pay tax plus interest on money never received because I think they want to tax the partner for the entire amount paid to AML by the end client and not just the money paid to the partner by AML
On top of that there is an outstanding loan which will now be taxed. How would you avoid paying additional tax on that unless somehow AML were kind enough to write it off for you before the deadline?
On the other hand, if the partner somehow managed to find the money to pay off the loan before the deadline then what happens to the money paid by the end client in the first place for work done by the partner?
If AML were kind enough to pay that back under the PAYE scheme it sounds like the partner would still be doubly taxed unless an agreement could be reached with HMRC to see that additional tax as having been paid as part of the settlement
Second, if you settle you will not be charged again in 2019. That has now been clarified by HMRC.
Third, whilst there is an argument for AML being liable to the tax, I suspect given their location and the fact that they seem to have gone into liquidation, means that HMRC will not be interested in chasing them. That might leave any UK agency or perhaps even your end client in the frame though.
Fourth, you will have to deal with the loan. It is to be hoped that once you have settled the tax and AML know that there is no comeback on them, they would write the amount off. However that is not certain. Therefore you may have to look to other means to resist requests for repayment.
Last, if you repaid the loan and the money came back to you, that is not settlement of the earlier years' position, may not escape the DR Charge in 2019 and may lead to a tax charge under Part 7A anyway. This is not something you should do without understanding the consequences.Best Forum Adviser & Forum Personality of the Year 2018.
(No, me neither).Comment
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In need of advice
Hi Phil, I have just registered and tried to PM you (phil@dswtres) but it comes back as address unknown. Is there another way? ThanksComment
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Number 4 worries me
Fourth, you will have to deal with the loan. It is to be hoped that once you have settled the tax and AML know that there is no comeback on them, they would write the amount off. However that is not certain. Therefore you may have to look to other means to resist requests for repayment.
I am hoping to god that they later on after I have settled, try NOT to then get the loans paid off and so in affect have to pay twice.Last edited by catanonia; 20 April 2018, 13:20.Comment
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