AML 2019 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?

[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.

[QCApproved]

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

aka "The Loan Charge"

[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?

[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]

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?

[SailedUpTheRiver]

Pension contributions

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?

[Loan Ranger]

Im not looking for any action that is risky, but i did think that having a trust still may have a benefit - and if you can afford to repay the trust, rather than HMRC, then at least you can look to get benefit from the money at some point - if you drip feed it out as a pension pot when you retire.

That is exactly what the earmarking provisions are designed to prevent.

[cojak]

And the director is also involved with Knox.

https://beta.companieshouse.gov.uk/company/10803115

[THISISWRONG]

Im not looking for any action that is risky, but i did think that having a trust still may have a benefit - and if you can afford to repay the trust, rather than HMRC, then at least you can look to get benefit from the money at some point - if you drip feed it out as a pension pot when you retire.
Is that not better than giving a slightly lower amount to HMRC?????

Looks like AML are about to go bump too:
https://beta.companieshouse.gov.uk/company/07014344
Registered office address
Blackfriars House, Parsonage, Manchester, England, M3 2JA
Company status
Active — Active proposal to strike off