AML 2019 Loan Charge

[ssg787]

Advisers with integrity

Good Afternoon Webberg. May i ask if you are able to comment. I have read many of the posts on here this morning. I spoke with Vanquish who directed me to PTS. They mentioned a change of practice by Smartpay in April 2016 which changed the tax position. Are you familiar with what Vanquish mean?

Dear Webberg (sorry new here and anxious) would you be able to suggest advisers with integrity that can help us navigate through this minefield?

[ssg787]

Thank you

You need 6 posts before PM rights are given, Admin has been ask to waive this for you.

I was not aware of this. Much appreciated

[GreenMirror]

Hi,
I have received a letter from HMRC today with the reference LCA, it says,

I am writing to you as I believe you've used a tax avoidance scheme. As part of this scheme you received a loan or credit instead of income and you haven't paid tax or national insurance on this. we call this disguised remuneration.


There are no figures or year this has happened on the letter. I was a permanent resident in Isle of Man but used to do come contracting in the UK. I have now returned to UK full time since 2016 June.

I tried calling them on 03000534226 but no response.

What should I do? any suggestions? DO I have to worry about this letter or is this a generic letter HMRC send to anyone who did contracting in the past regardless of any schemes they have used?

Please help. Thank you

In general you pay tax in the country where it was earned. When you contracted, did you use a UK limited, a IoM limited or some sort of scheme?

You always have to do something about letters like this - most people here approach webberg or phil@dswtres who are both highly recommended by several.

If you call HMRC, all they will do is ask for more information. They will not help and will only make matters worse. One person called HMRC saying they were suicidal and were told they could not be helped unless they settled.

[piebaps]

Hi,
I have received a letter from HMRC today with the reference LCA, it says,

I am writing to you as I believe you've used a tax avoidance scheme. As part of this scheme you received a loan or credit instead of income and you haven't paid tax or national insurance on this. we call this disguised remuneration.


There are no figures or year this has happened on the letter. I was a permanent resident in Isle of Man but used to do come contracting in the UK. I have now returned to UK full time since 2016 June.

I tried calling them on 03000534226 but no response.

What should I do? any suggestions? DO I have to worry about this letter or is this a generic letter HMRC send to anyone who did contracting in the past regardless of any schemes they have used?

Please help. Thank you

Thoma - if you were resident in the Isle of Man you will need to consider the IOM tax position too and make sure that your earnings were fully declared to their authorities. AML schemes are aimed at UK taxation and the IOM may have different rules. There is also a 1955 double taxation agreement between the IOM and UK which may help assign taxing rights. This is a case IMHO for specialist professional advice.

[thoma1820]

Received LCA letter from HMRC

Hi,
I have received a letter from HMRC today with the reference LCA, it says,

I am writing to you as I believe you've used a tax avoidance scheme. As part of this scheme you received a loan or credit instead of income and you haven't paid tax or national insurance on this. we call this disguised remuneration.


There are no figures or year this has happened on the letter. I was a permanent resident in Isle of Man but used to do come contracting in the UK. I have now returned to UK full time since 2016 June.

I tried calling them on 03000534226 but no response.

What should I do? any suggestions? DO I have to worry about this letter or is this a generic letter HMRC send to anyone who did contracting in the past regardless of any schemes they have used?

Please help. Thank you

[LOCA19]

HMRC / Ireland

Hi Tony, I'm Irish and worked in the AML system. I'm now in Ireland and have received the HMRC Loan Charge letter. I took advice and I have been advised that there is an EU agreement that allows one country to chase down the Tax debts where those debts arose abroad. As an example a Polish national was chased down in Ireland for not paying Capital Gains Tax on the sale of a house in Poland. There is no hiding.

hi,

I moved to Ireland in 2013 (South). I recently got a letter from hmrc re 2019 loan change.

Tempted to settle and tempted to do nothing - fed up with the uncertainty. I have some assets in the UK.

Can HMRC come after me in South of Ireland? If they cant and if the cant take my assets in the UK then why would i settle?

Is anyone in this board based in the south of Ireland or in another EU country? I would be really interested to hear from you.

Kind Regards
Tony

[StungWithTheLoanCharge]

Advice/Help on this loan charge

I've pretty much read most of this thread and like most of you I'm also effected by this loan charge. I have signed the petitions and also sent emails to my local MP's but no response as of yet.

I have spoken PTS, which has been a chore to get my loan details off.

@Webberg, do you have some time for a chat, I have been fed so much information from different people and just wanted to clarify a few things. Appreciate your help in advance.

Thanks

[YSTD30]

My little Situation

Good Morning, Afternoon, Evening/Night everyone

Have done plenty of research before dropping this post, a huge thank you to the huge community of people sharing information whilst trying to navigate their way through this trying scenario.

The reason i'm posting is because i've not managed to come across any information regarding my scenario and was wondering if one of you could shine a little light on it for me...

I used the Smartpay AML solution for approximately 4-5months 2014/2015 (after being employed as PAYE elsewhere in that tax period)

HMRC requested and were sent details of the partnership and loan amounts.

I received a letter regarding the loan charge this year regarding settlement. I've been living and working abroad since February with no intention of returning to work in the UK any time soon.

Now with regards to the loans; AML provided me with a breakdown (approx 14k loans with possibly 3k outstanding tax and NIC liability for that year). With regards to the loan charge in April, HMRC will most likely ask for that (plus interest?) but does it come out of my tax free allowance for 2018/2019?

Slightly confused, just trying to get an idea of what will come my way in April if i don't settle as I know exactly what to expect with Settlement.

Thank you so much in advance for any clarity you bring to this...

PS. Appreciate this is a very mild situation compared to the rest of you out there. Thoughts are with everyone in this stormy boat.

[ric_77]

Spoke with PTS on numerous occasions to try and gain some info from them, I had no intention of employing their services. They appeared to be utterly clueless and full of similar nonsense and lies as their AML colleagues, probably because they are the same people.

They said they 'had been told' that the loans would be released by the trust if you were settling via PTS but could not confirm this. They also said that they would come up with a 'deal' for the price to settle as they didnt expect us to pay £3000 plus for this servcie!

In summary, laughable.

[Desperado]

Hi All

Another new poster tapping into the goldmine of info that this thread offers. Thanks all.

Anyways my experience so far. AML/KHT contractor for just over 4 years, I left the scheme early 2016 and have been PAYE ever since.

Every year I was in the scheme has been the subject of an enquiry by HMRC and 2 years have also been reassesed by them These were appealed by AML and seem to have been in Limbo ever since.

When the LC.19 bomb dropped, I engaged PST to do my settlement. My total loans amount to some 88k but PST reckon the settlement figure should be way less than this as LC.19 only applies to 3rd party loans. Is this a real thing? and if so where did the rest of the money come from? I thought all my loans were 3rd party - ie KHT, but for some reason they say not.

I don't know - they are not pressurising me to go one way or another, It's obviously tempting - but it doesn't feel right and I am already sick of this whole mess. Once bitten etc. HMRC already have some figures direct from AML in response to previous enquiries and I will have to show bank statements so they will know the money came to me. My inclination is to try to settle the whole lot.... depending on the numbers of course.

Incidentally PST are doing the whole settlement for £750, which given the standard contract T&C isn't bad. Maybe dangling the bait of settling at a lower cost is what would get them the big fee. i.e. xx% of any "reduction" negotiated with HMRC. But I'm pretty sure that HMRC don't do haggling. So I guess I'll just let them check the HMRC figures are correct and suck it up.

I am told that the trustees of the loan will be able to release the loan upon confirmation that I have settled with HMRC. Quite what the trigger mechanism is, I don't know yet. I just pray it's correct! Still having an outstanding loan whilst paying tax on it is beyond scary.