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AML 2019 Loan Charge

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  • dangermaus
    replied
    Has anybody gotten to the stage where they have contacted Knox House Trust to arrange write off or “release” from their loans?

    Just looking to find out how painful and costly that part of the process is...

    Leave a comment:


  • webberg
    replied
    Originally posted by mst1958 View Post
    Been 'sitting on my hands' for the last couple of years waiting to see what happens! ... but recently received an email from Knox House Trust stating that I need to notify HMRC of personal liability by 30th Sep 2019 and submit a tax return including the loan charge by 31st Jan 2020 ... AND pay ALL tax due by 31st Jan 2020 ... otherwise face penalties of up to 100% of additional tax liability.
    They provided a number to Cresta who I've called but only there to help anyone who has decided to settle.
    I've had open enquires for 2010-2015 so HMRC already has the figures from AML - I have been awaiting the dreaded brown envelope as I assumed that HMRC would 'hit' me for the amount they think I owe. It would appear that we have to 'commit' ourselves. Not sure what to do. Have contacted WTT for advice.
    According to Contractor UK both Johnson & Hunt have stated that they will back a Loan Charge review Jeremy Hunt and Boris Johnson back 2019 Loan Charge Review
    Knox House (connected with AML) have, as usual, mixed fact and fiction in order to either avoid a potential liability of their own or to sell you something else.

    The assumption behind their statement is that you have had loans which are caught by the loan charge. If that is true (and you don't know this and certainly Knox House don't either) then you do have an obligation to report the loans and if they are taxable, then yes, an assessment will be made and tax will fall due.

    However all you have is a view from a party which is arguably potentially conflicted and who may, in some iterations of the truth, be liable for the loan charge themselves or one of their connections may be.

    Supplying numbers to HMRC and waiting is not sensible. An open enquiry can be settled ONLY by agreement with HMRC or by a Tribunal. If HMRC has stopped asking questions, this does not mean that they have reached a conclusion or can issue assessments/demands. The next step is for HMRC to issue a closure notice and if you agree with their position, you will get assessed and if not, you will go to Tribunal.

    The loan charge is NOT a substitute or alternative for settling or fighting your corner. HMRC claim that it is a new tax on a new source. That is nonsense of course but it's helpful to think of it that way. So even if the loan charge disappeared tomorrow, you have open enquiries and they would need to be pursued to their natural end as above.

    I have been unable to find much about a "Cresta" involved in the tax of contractor loans. The nearest I can find is a company within the Equiom Trust group who may have changed their name to Cresta. Equiom were certainly involved in some loan schemes and would probably have knowledge but how much and how relevant is unclear.

    Contacting WTT is sensible. Other advisers are available.

    Leave a comment:


  • webberg
    replied
    Originally posted by Willo76 View Post
    Hello webberG, thank you for your advice, notice has already been served on the scheme ( for which I already feel better ( granted this is state of mind only )) & initial contact made with WTT.

    Could you elaborate on what you mean by "An APN is not going to be issued. You have no open years and the scheme was not disclosed."

    For clarification, I work private sector.

    thanks
    An APN can be issued only if the year is under enquiry AND the scheme was disclosed for DOTAS purposes.

    Noting in your note indicates this is the case.

    Leave a comment:


  • dammit chloe
    replied
    Originally posted by mst1958 View Post
    Been 'sitting on my hands' for the last couple of years waiting to see what happens! ... but recently received an email from Knox House Trust stating that I need to notify HMRC of personal liability by 30th Sep 2019 and submit a tax return including the loan charge by 31st Jan 2020 ... AND pay ALL tax due by 31st Jan 2020 ... otherwise face penalties of up to 100% of additional tax liability.
    They provided a number to Cresta who I've called but only there to help anyone who has decided to settle.
    I've had open enquires for 2010-2015 so HMRC already has the figures from AML - I have been awaiting the dreaded brown envelope as I assumed that HMRC would 'hit' me for the amount they think I owe. It would appear that we have to 'commit' ourselves. Not sure what to do. Have contacted WTT for advice.
    According to Contractor UK both Johnson & Hunt have stated that they will back a Loan Charge review Jeremy Hunt and Boris Johnson back 2019 Loan Charge Review
    It should be noted that the only reason for the last bit is that LCAG has been working really hard to apply pressure ( and Iain Dale has been on our side for some time ). If not with LCAG then why not?

    Leave a comment:


  • mst1958
    replied
    Originally posted by Willo76 View Post
    Hello webberG, thank you for your advice, notice has already been served on the scheme ( for which I already feel better ( granted this is state of mind only )) & initial contact made with WTT.

    Could you elaborate on what you mean by "An APN is not going to be issued. You have no open years and the scheme was not disclosed."

    For clarification, I work private sector.

    thanks
    Been 'sitting on my hands' for the last couple of years waiting to see what happens! ... but recently received an email from Knox House Trust stating that I need to notify HMRC of personal liability by 30th Sep 2019 and submit a tax return including the loan charge by 31st Jan 2020 ... AND pay ALL tax due by 31st Jan 2020 ... otherwise face penalties of up to 100% of additional tax liability.
    They provided a number to Cresta who I've called but only there to help anyone who has decided to settle.
    I've had open enquires for 2010-2015 so HMRC already has the figures from AML - I have been awaiting the dreaded brown envelope as I assumed that HMRC would 'hit' me for the amount they think I owe. It would appear that we have to 'commit' ourselves. Not sure what to do. Have contacted WTT for advice.
    According to Contractor UK both Johnson & Hunt have stated that they will back a Loan Charge review Jeremy Hunt and Boris Johnson back 2019 Loan Charge Review

    Leave a comment:


  • Willo76
    replied
    Originally posted by webberg View Post
    At least now you head is in the sunlight you can see clearly. That is a good start.

    I've never heard of Questa. The PTS outfit has historic connections with AML (and Carnegie Knox) but Questa is a new one. There is nothing obvious with that name registered as a company in UK or the IOM (the usual suspects). That said, with AML often nothing is too obvious and they are these days a more diverse organisation and as such it would not surprise me to see a connection.

    Have you asked them?

    The "loan to replace a loan" type arrangement is - in my opinion - not going to remove the loan charge. We know that schemes involving this type of structure were doing the rounds pre April 5th this year and that opinions as to their effectiveness were mixed but weighted towards the "will not work" end of the scale.

    I suggest therefore that taking a loan to pay the tax from an unknown source is hardly sensible. The suggestion that a fee of 15% of any settlement value is also interesting. The deadline for registering for that has passed and a settlement later will almost invariably see HMRC try to ramp up the value. If I was getting paid a percentage of a value set by HMRC I would be in no hurry to reduce it!

    An APN is not going to be issued. You have no open years and the scheme was not disclosed.

    You need to give notice - NOW - and leave the scheme.

    You then need to consider the future. You may have more years contracting ahead of you, but if you work in the public sector, the end client is making a decision about your IR35 status and from April 2020 this will extend to include private sector end clients.

    If you are confident that you will remain outside IR35 then any number of firms will take you on. Look at the banners around this forum.

    If you are not confident this will happen, then you need to consider an umbrella - a good one and not one promising take home rates achievable only by tax avoidance -and again many advertsie here.

    You perhaps need to speak with an adviser regarding your past use of a scheme. Your settlement options are now scarce for the reasons above, but perhaps not over. The alternative is to fight on via the Tribunals.

    We can offer a discussion on a number of the above points - as can others who can be found in these threads.

    We are WTT Consulting. There is an adviser called Phil Manley who posts here who was at DSW but who I think may have left to go it alone. I'm sure a Google search will find him. I notice also that a new kid on the block has arrived in the form of Carloyn Walsh of CWC Solutions. I don't know here or the guy who owns that company and am therefore neutral in terms of recommending or not.

    We can all be found with a simple search.

    We offer a free initial call. I cannot speak for the others.

    Hello webberG, thank you for your advice, notice has already been served on the scheme ( for which I already feel better ( granted this is state of mind only )) & initial contact made with WTT.

    Could you elaborate on what you mean by "An APN is not going to be issued. You have no open years and the scheme was not disclosed."

    For clarification, I work private sector.

    thanks

    Leave a comment:


  • Dmac
    replied
    Exit and get advice

    The above is all sensible advice Willo. Exit the scheme as soon as you can, and maybe consider going the Ltd Co route, or with a reputable umbrella (NOT one using a loan scheme of any description).

    And get professional tax advice now - I have used WTT but there are others. Use one experienced in the 2019 Loan Charge otherwise you will pay whilst they get up to speed on this very bespoke area.

    I would personally NOT use your "scheme accountant" any longer - get a new one. Then join LCAG, who are very supportive.

    Good luck - you are certainly not alone in this!

    Leave a comment:


  • webberg
    replied
    Originally posted by Willo76 View Post
    Hi, I'm new to this forum and prompted as I have apparently had my head buried in the sand.

    I asked the name and was advised they are called Questa. Reading previous posts this appears to be an alternative for PTS ??? They advised me that they can help by paying the loan charge - 45-45% of loan amount or replacing the loan with a "replacement loan offer", the latter costing £295. Their subsequent fee will be 15% of settlement figure agreed.

    I'm under investigation nor an APN but assume this is only a matter of time.

    My current accountant is part of the the Knox/spm/AML etc group - Carnegie Knox. As I am still contracting I also need to get out of this method of renumeration but not sure if another accountant would give me a wide berth as I may be "toxic".

    Any advice please !!??
    At least now you head is in the sunlight you can see clearly. That is a good start.

    I've never heard of Questa. The PTS outfit has historic connections with AML (and Carnegie Knox) but Questa is a new one. There is nothing obvious with that name registered as a company in UK or the IOM (the usual suspects). That said, with AML often nothing is too obvious and they are these days a more diverse organisation and as such it would not surprise me to see a connection.

    Have you asked them?

    The "loan to replace a loan" type arrangement is - in my opinion - not going to remove the loan charge. We know that schemes involving this type of structure were doing the rounds pre April 5th this year and that opinions as to their effectiveness were mixed but weighted towards the "will not work" end of the scale.

    I suggest therefore that taking a loan to pay the tax from an unknown source is hardly sensible. The suggestion that a fee of 15% of any settlement value is also interesting. The deadline for registering for that has passed and a settlement later will almost invariably see HMRC try to ramp up the value. If I was getting paid a percentage of a value set by HMRC I would be in no hurry to reduce it!

    An APN is not going to be issued. You have no open years and the scheme was not disclosed.

    You need to give notice - NOW - and leave the scheme.

    You then need to consider the future. You may have more years contracting ahead of you, but if you work in the public sector, the end client is making a decision about your IR35 status and from April 2020 this will extend to include private sector end clients.

    If you are confident that you will remain outside IR35 then any number of firms will take you on. Look at the banners around this forum.

    If you are not confident this will happen, then you need to consider an umbrella - a good one and not one promising take home rates achievable only by tax avoidance -and again many advertsie here.

    You perhaps need to speak with an adviser regarding your past use of a scheme. Your settlement options are now scarce for the reasons above, but perhaps not over. The alternative is to fight on via the Tribunals.

    We can offer a discussion on a number of the above points - as can others who can be found in these threads.

    We are WTT Consulting. There is an adviser called Phil Manley who posts here who was at DSW but who I think may have left to go it alone. I'm sure a Google search will find him. I notice also that a new kid on the block has arrived in the form of Carloyn Walsh of CWC Solutions. I don't know here or the guy who owns that company and am therefore neutral in terms of recommending or not.

    We can all be found with a simple search.

    We offer a free initial call. I cannot speak for the others.

    Leave a comment:


  • Willo76
    replied
    SP management -Questa - Knox Trust

    Hi, I'm new to this forum and prompted as I have apparently had my head buried in the sand.

    I have been with SP management since 2015-on-going. Never heard of the loan charge and deadline dates. I received an email form Knox House Trust recently saying they are making me aware of the LC so that I can take appropriate action. They advise that they have engaged with a specialist firm who can assist me with notifying HMRC of my liability, submitting a tax return and paying any tax due. No company name was given in the email, just a phone number. On calling the number I asked the name and was advised they are called Questa. Reading previous posts this appears to be an alternative for PTS ??? They advised me that they can help by paying the loan charge - 45-45% of loan amount or replacing the loan with a "replacement loan offer", the latter costing £295. Their subsequent fee will be 15% of settlement figure agreed. I also have to provide them with passport scan, proof of address....

    Now I've read this forum and others, I realise I've been an idiot. I've not received any HMRC correspondence advising I'm under investigation nor an APN but assume this is only a matter of time.

    I'm still self emp' with good work prospects for years to come in my line. I need to get this monkey off my back but as I'm not legal nor financial I have no idea what to do other than follow some of your previous advice and contact tax acountancy. I appear to have missed some of the HMRC deadlines to potentially aggravate my situation.

    My current accountant is part of the the Knox/spm/AML etc group - Carnegie Knox. As I am still contracting I also need to get out of this method of renumeration but not sure if another accountant would give me a wide berth as I may be "toxic".

    Any advice please !!??

    Leave a comment:


  • AdamIT
    replied
    IHT on AML Loan

    Hey, I thought i had settled with AML when I paid back over 100k about 6 months...I recently received a letter from my tax advisor that they have taken the liberty of adding IHT on the duties payable on the assumptions that the loans will be written off.

    Does anyone if this is right?

    My advisor is not aware of how the trust [s] were termed so cannot comment if this is right, but has anyone gone through this? is this a losing battle or something that can be countered?

    Leave a comment:

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