AML 2019 Loan Charge

[nedian21]

Hi, I received this communication from AML today in relation to the 2019 Loan Charge.

Upon reading it does appear that AML are shifting liability and advising ex users to contact 3rd party services for advise!

- Has anyone else had contact with AML recently and can anyone recommend next steps?

- Does anyone know how the 2019 Loan Charge works in relation to those who have APNs issued but these have been put on hold pending tribunal and witness statements issued for hardship?

Copy of communication below

—-
The purpose of this email is to bring to your attention all the options that are available to you concerning the Loan Charge legislation introduced by HMRC, which will take effect from April 2019.

As a recipient of a third party loan you will be caught by this punitive legislation and should take remedial action to mitigate your liability without delay. At the time the loans were made, they were within the tax legislation and not taxable. However, the new ‘Loan Charge’ legislation has been made retrospectively and you will be subject to the full force of this legislation when it takes effect in 2019.

If you have an ongoing Enquiry with HMRC, you may already be in communication with AML Tax who were appointed to deal with the Enquiries on your behalf. AML Tax is continuing to, and are committed to, working with HMRC and defending the arrangements in the First Tier of the Tax Tribunal where relevant. AML Tax will continue this extensive work in relation to enquiries only. You will have received an email from Knox House Trust, the Trustees of the trust that holds your loan. They have outlined 2 options to mitigate the 2019 Loan Charge; Settlement or Repayment. They cannot offer assistance and have suggested the services of contractor specialist PTS Limited, who can assist with these 2 options. There is no disadvantage to registering your interest in a settlement, however it must be done before 31 May 2018.

We would like to draw to your attention that there are further alternative options available. Vanquish Options can provide a mechanism to repay your existing loan which meets the requirements of the Loan Charge legislation and is supported by Tax Counsel opinion. Examples of the financial impact of each option are available. Please take time to review their website and contact Vanquish Options on 0203 740 3876. Taking no action will not avoid the 2019 Loan Charge.

——

I am in the same boat and recently received exactly the same email from SmartPay (which I think is part of AML) and Knox trust. I have started using their services from Feb-Mar 2016. My first loan was received in Mar 2016 and on average it is around 5 and half grand. So total loan amount for 2+ years is around £140k + which for obvious reasons, I am not in the position to repay. I emailed PTS ([email protected] ) but for few didnt hear anything back from them. I then contacted SmartPay and initially they told me you need to wait for PTS to come back and on my persistent email and calls to them it seems someone in their team asked PTS to response. So seems SmartPay , PTS or even Vanquish are all same. PTS have been very generic in their response so far. They havent mentioned whether they will charge me or not.

I havent received any letter / email from HMRC so far. I am still not sure whether I should go for settlement option or some other thing. Also someone was telling me that the loan charge legislation is only applicable on loans taken after Apr 2016 and I started Mar 2016. Is this correct? In that case would HMRC be pursuing me for 1 month? Also those of you who are with AML or any such companies have you already moved to legit Umbrellas or own LTD or still with these?

[luxCon]

Can someone please explain the pension contribution scenario please? I am planning on settling with HMRC through and independant tax advisor and have seen various posts with reference to pension contributions. Does your liability with HMRC reduce if you agree to contribute to a pension?

This is a good start put together by Loan Ranger

https://forums.contractoruk.com/hmrc...-guide-v5.html

[nedian21]

Just joined after reading all the previous threads on this subject and frantically scrabbling around for anything which will give some guidance to this predicament - I can see I'm not alone after scouring everyone else's posts and that in itself is more than a crumb of comfort amidst this sorry mess.

I received mails from both KHT and PCL last week - all with the same content as other posts have previously detailed, advising me to contact either Vanquish Options or PTS Ltd for 'opportunities' and choices in how to deal with the new legislation. From what I've read here, it seems as if all those options being offered by their associates are just likely to land me in even hotter water, so I'm steeling myself for whatever other option might work. I've tried to digest as much information as possible in a short space of time and feel utterly overwhelmed at the scale and complexity of it - the wise counsel and words here have helped more than anything else I've found in recent days.

I've already contacted WTT and have an appointment booked for next week for an initial consultation - my sincere and very public thanks to those who are attempting to assist during this bl**dy awful time.

in same position. Can you please provide me WTT contact? Are they tax consultants / advisors?

[QCApproved]

Good article in the Daily Telegraph about the pernicious, and clearly retrospective, delayed tax on hard working folk

aka "The Loan Charge"

[Loan Ranger]

Can someone please explain the pension contribution scenario please? I am planning on settling with HMRC through and independant tax advisor and have seen various posts with reference to pension contributions. Does your liability with HMRC reduce if you agree to contribute to a pension?

Pension contributions don't help with settlement because you can't backdate contributions for past tax years.

The references you've seen to pension contributions only apply to the Loan Charge.

[bigman]

I am in the same boat and recently received exactly the same email from SmartPay (which I think is part of AML) and Knox trust. I have started using their services from Feb-Mar 2016. My first loan was received in Mar 2016 and on average it is around 5 and half grand. So total loan amount for 2+ years is around £140k + which for obvious reasons, I am not in the position to repay. I emailed PTS ([email protected] ) but for few didnt hear anything back from them. I then contacted SmartPay and initially they told me you need to wait for PTS to come back and on my persistent email and calls to them it seems someone in their team asked PTS to response. So seems SmartPay , PTS or even Vanquish are all same. PTS have been very generic in their response so far. They havent mentioned whether they will charge me or not.

I havent received any letter / email from HMRC so far. I am still not sure whether I should go for settlement option or some other thing. Also someone was telling me that the loan charge legislation is only applicable on loans taken after Apr 2016 and I started Mar 2016. Is this correct? In that case would HMRC be pursuing me for 1 month? Also those of you who are with AML or any such companies have you already moved to legit Umbrellas or own LTD or still with these?

I don't mean to judge, but how on earth can people be just starting to get involved with all these schemes in 2016? After the APN's had started landing?

[Vincenth1]

Daily Telegraph

Good article in the Daily Telegraph about the pernicious, and clearly retrospective, delayed tax on hard working folk

aka "The Loan Charge"

Yes a good article
"Immoral HMRC retrospective taxation of contractors"
Stephen Lloyd's (Lib Dem MP for Eastbourne) parliamentary motion has cross-bench support from Labour & DUP MPs. His motion is that retrospectively taxing something that was technically allowed at the time is unfair and should not apply to those who entered into schemes before the Finance Bill gained royal assent last year.
I like many others was led into the arrangement by my accountant.
A tax consultant also believes that this is "taxing individuals retrospectively, which would be illegal and the protocol is that this should only be retrospective in exceptional circumstances."
Although HMRC has the power to fine and recover any fees earned by enablers of tax avoidance, I haven't seen any sign of this ...
I'm thinking of writing to Stephen ... Don't hold out much hope with my local MP ...

[mr_786]

Settlement Or Loan Charge

I had the below correspondence with HMRC directly: I asked 4 questions .


1. Does this legislation impact loans taken before 2019?
Yes. The 2019 loan charge will apply to disguised remuneration (DR) loans made on or after 6 April 1999 and still outstanding on 5 April 2019.

2. If yes, how many years in the past, one will have to report loans?
You will need to report all DR loans made on or after 6 April 1999.

3. If one decides to settle it with HMRC before April 2019, how many years will be given to pay off the tax liability? Assuming no massive cash reserves...
If you will have difficulty in paying the full amount on time, HMRC can help by spreading payments over a number of years. There are no defined minimum or maximum time periods for payment arrangements. We will:

· take into account any changes in your circumstances and discuss options to make sure we manage your case in the best way
· always take a realistic look at your income, assets and essential outgoings, alongside what you owe and any other debts
· always consider how much you’re able to pay, and over what period
· expect you to pay the outstanding amount in the fastest possible time

To discuss your options, please contact us as soon as possible on 03000 534 226. We’ll talk with you about your circumstances and work with you to resolve your tax matters in the best way.

4. With settlement option, would HMRC charge interest on the tax liability?
Yes. If you used a DR scheme you will need to pay late payment interest for any years where HMRC has an open enquiry into your tax affairs, is within time to open one, or an assessment is in place. The terms of our Litigation and Settlement Strategy mean we are unable to waive interest or accept settlement for a lesser amount than is due under the law.

Based on question 4, If I am going to be charged interest, then what is the point of going for settlement option. In my case, the tax liablity will be less if I wait until 2019 - given HMRC are going to charge interest regardless of settlement or loan charge..

Can someone shed some light? Or Someone who has got any settlement figures back from HMRC? Did their calculations included interest?

Also sounds like that they are prepared to sell your assets if needed....I feel sick seriously, never thought something like this can happen in UK ....

[mr_786]

Twitter #2019LoanCharge

For those, who use twitter, follow #2019LoanCharge and raise your voice there too..

I have also contacted (via twitter) to my local MP...i think this is the only way, we can get a miracle done (if at all)..

[Loan Ranger]

Based on question 4, If I am going to be charged interest, then what is the point of going for settlement option. In my case, the tax liablity will be less if I wait until 2019 - given HMRC are going to charge interest regardless of settlement or loan charge..

There is no interest with loan charge.

Download the PDF. It covers interest, settlement etc.
https://forums.contractoruk.com/hmrc...-guide-v5.html