AML 2019 Loan Charge

[Vincenth1]

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Just emailed Stephen Lloyd MP ...
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Rt Hon Stephen Lloyd

Dear Mr Lloyd,

I am writing to express my support for your early day motion 1239 expressing concern at the 2019 Loan Charge and retrospective action applying back to 1999. I agree that the loan charge should apply only to disguised remuneration loans entered into after the Finance Act 2017 received Royal Assent.

I am just one of hundreds of thousands of ordinary people caught up in this massive miss-selling scandal who was led into the arrangement by my accountancy firm.

I agree that it is unfair that HMRC are pursuing people who acted in good faith on the advice of professionals, rather than the client organisations, agencies, umbrella companies, scheme providers and accountants, all of whom benefited greatly and many of which have significant assets. Although HMRC have the power to fine and recover the fees earned by the enablers of tax avoidance I see no evidence of them doing so.

Presuming HMRC has its way on the transfer of liability from enabler to beneficiary, I like so many others now face the shock of retrospective sanction under the loan charge. Apparently HMRC undertook an impact assessment on the loan charge and concluded that the impact will be minimal on families. I have no idea how they could have arrived at such a conclusion. The fact is that this assertion is clearly false and despite HMRC assurances that the rules will not create hardship or injustice, personal bankruptcy and worse is, sadly a very real prospect.

With interest added to tax (a requirement of HMRC's strategy) and national insurance liability calculations, I cannot see any realistic prospect of being able to reach a settlement with HMRC I can honour that will avoid financial destitution, and so will likely be forced into personal bankruptcy. The fallout from this will be personally significant, including the care of my wife who is disabled and reliant on me for financial support.

On the contractor forums there are harrowing stories to be read and some people are considering taking drastic action because they feel they have no other choice, including contemplating suicide, because they see themselves as the problem.

I am though encouraged that your motion appears to be gathering momentum with the cross bench support of some Labour and DUP MPs.

For obvious reasons, I would like my name to be kept confidential.

[phil@pmtc]

As I have already responded on a different thread, if HMRC has asked you to complete and return something, I recommend that you do.

Why? They only said that on the phone. Nothing in writing saying it’s needed as part of registering process. I would say therefore,until it’s in writing/email, the deadline to disclose those details remains at end of September. It can’t be part of registering process until they specifically say so and a random person implying it on the phone doesn’t count imo. I would however say if registering interest was via a phone call then I’d follow up with an email with ni and utr so an audit trail exists

[THISISWRONG]

This is what I've been querying you on - how will you convince an IOM trust to transfer their business to some other trust? What incentive is there for them to do that?

Hi again, from what I have been told I don’t have to convince them. I can simply request it and follow the legal process for transferring a trust to new trustees.

I kind of feel I must be missing something here... there is a company local to me that specialises in trusts and they said they right to the current trustees and arrange the transfer and it’s not uncommon. The trust and trustees are regulated to do this.

[MayMadness]

MP

Hello,
I see that some people are writing to MP's. I appreciate that people would rather remain anonymous. I've tried to do that too.
However, I have had my emails rejected because I did not include a name and address. I was told this was required to 'communicate' because they do not want to be wasting time with others not in their area. There is a different way of contacting MP's outside your area.


I have included a link regarding the matter
https://www.parliament.uk/get-involv...p/#jump-link-4

If people are going to write, I will highlight that the need for detail is essential. The letters already written and share on the forum are great. To give them an even greater punch--add detail. Make it personal.

Things to consider adding or tweaking: (Please bare in mind these are just suggestions. Just doing 1 of them will be a great start if everyone starts doing it).

1. Add a brief history on how you personally entered into this situation (particularly if you were for all intense in purposes coerced, or were assured it was legal with details by who or what organisations).

2. Tell them specifically how this is and will impact you personally and just as importantly...your family. Go into short but concise detail such as marriage breakdown, "my children avoid me because I am on edge at all times". "I feel", "I think I might..." I am having panic attacks, insomnia etc. Think about how you use to act prior to this situation and how you act now with your relationships, yourself as a person (Do you still hang out with friends? engage in hobbies?) to help give them the perspective that this situation has caused these things to happen to you.

(If that is too overwhelming then another tactic is to state your mental state and simply use bullet points on how this situation has caused you to suffer).

3. Have family members write/meet MP's regarding how this has and will impact them specifically and you if they are willing. Why? Because they are suffering in different ways due to this. More to the point, your partner in particular will offer a different perspective on how your behaviour and attitude may have changed and/or impacted the family that you may not realise.

4. For anyone involved in an organisation such as a Tax company, a Charity, even an EBT scheme. You could also write and speak about the situation from your Professional standpoint on who is impacted and who has yet to be impacted. If you are a tax accountant and your clients are telling you details that make you worry about their welfare...THAT IS SIGNIFICANT. You are perhaps a Business, a professional individual or an institution that has some degree of detachment from the loan charge. In other words, your not in the trenches dealing with this. You 'outside perspective' and professional credentials could offer additional support to question whether the loan charge is a wise move or not.


Sorry if this is not appropriate here or already been repeated. I am not one for forums but thought I would add some food for thought.

MM

[Loan Ranger]

So! I called Vanquish. Terrible conversation with a dodgy salesman who told me that their repayment option was via a "third party" who they could not name. Who would REPAY the loan to Knox House, who would in turn wipe the loan off their books as repaid. But where does the money go? It was my salary afterall? Well it's a fake repayment. The earner for them is the 5% of the loan total value that you pay in order to have this fraud committed.

I can't believe they even think this stands a cat in hell's chance of working.

I hope no-one falls for this disgraceful scam.

[Loan Ranger]

Loan Ranger, Thanks for your doc. Just to clarify above dates ? Is it loans between 6/4/19 and 30/9/19 ? If you don't settle by 5/4/19, then you have to declare all your loans for all years. The deadline for declaring is 30/9/19.

I was in similar situation where i will be better off if HMRC allows me to show 2013/14 income as of 2018/2019, so that i can contribute to pension and payoff the balance as tax to HMRC. What is your advice here.? shall i keep quiet until Arp 2019 instead of voluntary disclosure. If you've got an unprotected year, then making pension contributions this year is a perfectly valid way of reducing tax.

Advance thanks..

See above.

[WTFH]

Hi again, from what I have been told I don’t have to convince them. I can simply request it and follow the legal process for transferring a trust to new trustees.

I kind of feel I must be missing something here... there is a company local to me that specialises in trusts and they said they right to the current trustees and arrange the transfer and it’s not uncommon. The trust and trustees are regulated to do this.

I can understand what you are saying in the case of an investment trust, but you have no investment in the trust. You have a loan from that trust. If you choose to repay that loan, then the trust has no further interest in you.

If your local specialists say that they can get one trust to pass a debt to another trust, then that would be a strange business proposition for the new trust. It has then taken on the debt, but you mentioned earlier about the new trust investing the money. They won't have the money, they will have the debt.

[kentishlad]

MP Response or lack thereof

I didnt actually outline what has happened to me personally already regarding this, maybes I should have, but Ive had no response from my MP at all from my two emails (whether thats because he a Tory and couldnt care less about this?? or hes just plain busy)
As it stands Ive been in hospital twice now and my relationship of 12 years has come to and end. Due in part to this immoral law. I get all the comments of 'its your own fault' but I entered into what I did under the advisement of an 'professional'. Yes I could have disagreed and just done this the 'right way'. Thing is it wasnt actually the wrong way previously.
Thankfully, my ex and child wont lose their home. I know of many others who will. For HMRC to say that this will have little or no impact on families is tosh. And already I know of one individual who is seriously considering doing the unthinkable. HMRC wouldn't give the steam off their sh*te let alone any consideration for the thousands of people this will impact

[mr_786]

PTS Loan Figure

Has anyone got their loan figures from PTS? They gave me a figure yesterday over the phone. I asked them to email me that figure, but to date, haven't received the email .

Secondly, they are not giving me the breakdown.
Thirdly, the figure does not match to what I worked out through my bank statements.

Has anyone had the same problem? How HMRC would verify the loan figures? Can I prove it via bankstatments?

I must say this LC2019 is killing me now .. can't focus on anything at work, home etc ....

[QCApproved]

Absorb the shock
look at BG - focus on courses of action