AML 2019 Loan Charge

[JackH1]

No, it will not.

That's good to know!

[Pipjb]

Hello from me

Hello all.

After having read all 53 pages of posts I now feel the need to add my own.

Obviously, I am in the same boat as most posting on here, and like most have lost vast amounts of sleep in the last month since I became aware of the ‘loan charge’ and what it potentially means.

I have been trying to get to grips with it all and not being helped much by you know who…

Just to clarify my pay structure is: My company does work for company X through agency Y, my company invoices agency Y, agency Y pays my company, I send AML/SPM my timesheet, AML/SPM send my company bill, my company pays AML/SPM bill, AML/SPM pay me retainer (as self-employed) and loan, job done.

I have a friend in exactly the same situation and we seem to get different info. We both have been in touch with the very helpful (cough) PTS rep. My friend was told that what needs to be disclosed in up to 06-Apr-16, not so bad as we both started mid 2015. My conversation was different and because I am self-employed but operate through my limited company the date had shifted to 28-Mar-17, much worse. To clarify, those dates are being used for the £250 + 5% plan cost calculation so no LC applies.

So to me that implies that HMRC will ask AMP/SPM (or the trust I guess) to disclose all open loans, and that SPM think all loans after 28-Mar-17 are NOT under consideration!

So, that gives me a question; if I go down the CLSO route what do I disclose, up to 28-Mar-17 and hope for the best or all the way up to March this year (when I stopped using SPM)?

One other point I would like to make and put out there for feedback:

How the hell can HMRC say that because we have no intention of paying back the loan then it is a DR and subject to the LC!!! I for one would quite happily sign a declaration to say that upon my death I would pay back the loans in full out of my estate! Therefore, it is a loan pure and simple! No LC! And the way I am going death is an option!

[Loan Ranger]

4 weeks since notification from KHT. Apart from the. 2-3 hours sleep each day I get - this is on my mind the remainder of the day. At least it’s good for the weight as now 2st lighter. Not sure what the future holds - but serious question - would the tax burden pass onto my spouse?

I will answer the question dispassionately.

The loan charge is not intended to apply to someone who has died.

https://davidpett.tax/2018/02/06/dis...n-the-meantime

[ASW]

What does future hold?

4 weeks since notification from KHT. Apart from the. 2-3 hours sleep each day I get - this is on my mind the remainder of the day. At least it’s good for the weight as now 2st lighter. Not sure what the future holds - but serious question - would the tax burden pass onto my spouse?

[phil@pmtc]

Does anyone know by entering a prospective repayment loan (Time to Pay) with HMRC (For which many of us will have to) Will have an effect on our credit rating?

No, it will not.

[JackH1]

HMRC and Credit Rating

Does anyone know by entering a prospective repayment loan (Time to Pay) with HMRC (For which many of us will have to) Will have an effect on our credit rating?

[JackH1]

Hi All.

I'm a long time lurker on these forums but have finally registered an account because of this 2019 Loan Charge. As with everyone else, this is stressing me out immensely and looking for any guidance or advice.

I wasn't part of the AML scheme. My situation seems to be somewhat different to others I have read on here, but probably ultimately in the same boat. I operated through a LTD company and it setup an EFRBS with the loan being paid to me (directly by my LTD) as a benefit. The scheme was dotas and so obviously declared. The LTD company no longer exists and the only communication from HMRC on the subject has been to say that the LTD co (which no longer exists) owes primary NICs because HMRC see the loan as income. I've not had anything further - no APNs, no open investigation or enquiry.

The only way I found out about this potential Loan Charge is from the trustees that issues the loan.

So some questions I have for you fine folk:

1. Has anybody else come across the LTD/EFRBS arrangement as above?

2. Given the communication I've had from HMRC (which was to say the LTD co owed money), am I silly to register an interest before 31st May 2018? Ie. am I unnecessarily putting myself on the radar, or does the fact the scheme was DOTAS mean that I'm inevitably on that radar anyway?

3. My first inclincation is to just settle immediately. I can't be handling this stress. There is the question of can I afford to settle and how long I'd have to do so. However, it seems to me HMRC are trying to get people to voluntarily settle well before Apr 2019. Is this perhaps some kind of ruse because they know they won't be able to follow through with this punitive retrospective charge? If so, am I being hasty in settling. Is there anyway to delay settlement to see what happens - but without getting hit with the 2019 LC?

I apologise for the long post and appreciate any and all feedback.

Thanks.

If you don't register to settle, they will come after you from Apr 2019 with the new powers the HMRC will have and will cost you more. It's a risk not worth taking.

Many of us including myself can't afford to settle either. I can pay half of the expected amount with all my savings and loan from them over many years (if i get it) or contemplate selling my flat. Depressing times...

[RickG]

I'm new - and extremely stressed!

Hi All.

I'm a long time lurker on these forums but have finally registered an account because of this 2019 Loan Charge. As with everyone else, this is stressing me out immensely and looking for any guidance or advice.

I wasn't part of the AML scheme. My situation seems to be somewhat different to others I have read on here, but probably ultimately in the same boat. I operated through a LTD company and it setup an EFRBS with the loan being paid to me (directly by my LTD) as a benefit. The scheme was dotas and so obviously declared. The LTD company no longer exists and the only communication from HMRC on the subject has been to say that the LTD co (which no longer exists) owes primary NICs because HMRC see the loan as income. I've not had anything further - no APNs, no open investigation or enquiry.

The only way I found out about this potential Loan Charge is from the trustees that issues the loan.

So some questions I have for you fine folk:

1. Has anybody else come across the LTD/EFRBS arrangement as above?

2. Given the communication I've had from HMRC (which was to say the LTD co owed money), am I silly to register an interest before 31st May 2018? Ie. am I unnecessarily putting myself on the radar, or does the fact the scheme was DOTAS mean that I'm inevitably on that radar anyway?

3. My first inclincation is to just settle immediately. I can't be handling this stress. There is the question of can I afford to settle and how long I'd have to do so. However, it seems to me HMRC are trying to get people to voluntarily settle well before Apr 2019. Is this perhaps some kind of ruse because they know they won't be able to follow through with this punitive retrospective charge? If so, am I being hasty in settling. Is there anyway to delay settlement to see what happens - but without getting hit with the 2019 LC?

I apologise for the long post and appreciate any and all feedback.

Thanks.

[luxCon]

Which tax year the loan charge will be applied to?

2018/19 Or 2019/20 ?

I don't want to take extra dividends out in 2018/19 if loan charge will be applied along side my income from 2018/19

This year, 2018/19

[mr_786]

Loan Charge - Tax Year

Which tax year the loan charge will be applied to?

2018/19 Or 2019/20 ?

I don't want to take extra dividends out in 2018/19 if loan charge will be applied along side my income from 2018/19