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AML 2019 Loan Charge

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  • webberg
    replied
    Originally posted by dmuk View Post
    I have been watching the recent commons debate on the loan charge at Parliamentlive.tv - Commons

    This is entertaining viewing and is reassuring that some MPs are challenging HMRC.

    Many of the MPs state the same message as members of the forum that HMRC sat back while these schemes were in action. One claim is that HMRC approved many of scheme or scheme provider. Where can one source this evidence for my own particular provider?

    I know the scheme provider claimed they were rubber stamped by HMRC however what material evidence would support this?
    Be very clear.

    HMRC has never approved of any scheme.

    Not only is such action not possible in law, it is contrary to HMRC policy and has been for as long as I an recall.

    If a scheme promoter claimed that they were "approved", they were not telling the truth.

    Leave a comment:


  • dmuk
    replied
    I have been watching the recent commons debate on the loan charge at Parliamentlive.tv - Commons

    This is entertaining viewing and is reassuring that some MPs are challenging HMRC.

    Many of the MPs state the same message as members of the forum that HMRC sat back while these schemes were in action. One claim is that HMRC approved many of scheme or scheme provider. Where can one source this evidence for my own particular provider?

    I know the scheme provider claimed they were rubber stamped by HMRC however what material evidence would support this?

    Leave a comment:


  • webberg
    replied
    Originally posted by dangermaus View Post
    I have some loans to be included in my tax return for the 2018-2019 year. My accountant has spoken to HMRC and has been advised to treat all payments paid by my Ltd Conpany to SP Management (including SPM’s fees) for that year as salary, rather than just the retainer and loans paid by SPM to my personal account.

    Surely that’s not right?! Why should a payment by my Ltd company to SPM for services (their fees) be treated as my own personal income? Surely it should just be what has paid to me personally?
    What you have is HMRC's dogma and alleged "analysis" of the situation.

    In HMRC land, the correct amount you are taxable on is that sum invoiced by your agent/intermediary, to the end client for your time and services.

    From that amount, you have paid a fee and because that is a fee for a tax avoidance scheme, it is not tax deductible.

    Ergo, you are due to pay tax as if you had received the full amount invoiced.

    That analysis is flawed (in my opinion).

    Rangers said that the income taxable upon the individual was the amount that the individual was entitled to "FROM THE EMPLOYER".

    Last time I looked, the end client was not the employer (and if HMRC think they are, they why have they not sent a PAYE assessment to them?)

    The employer was either your company or SP or some other intermediary.

    If it was your company, that entity never had free use of the gross invoiced amount and cannot therefore have promised it to you as remuneration.

    If it was SP, then their legal entitlement was to a fee for substantially the whole of the invoiced sum. Therefore they could (arguably should) be liable to PAYE on that as de facto employer or as a party acting in place of an employer. (We have seen HMRC issue notices of liability to such entities).

    If it was an intermediary, then perhaps the rules in s 44 ITEPA should be called into play.

    Whichever way you cut this however, the point remains that the amount paid in fees was never yours.

    Leave a comment:


  • dangermaus
    replied
    I have some loans to be included in my tax return for the 2018-2019 year. My accountant has spoken to HMRC and has been advised to treat all payments paid by my Ltd Conpany to SP Management (including SPM’s fees) for that year as salary, rather than just the retainer and loans paid by SPM to my personal account.

    Surely that’s not right?! Why should a payment by my Ltd company to SPM for services (their fees) be treated as my own personal income? Surely it should just be what has paid to me personally?

    Leave a comment:


  • webberg
    replied
    Originally posted by Swan1e View Post
    I've requested settlement and I'm deciding whether to proceed or not, however has anyone been successful in settling and getting the loans wrote off? if yes
    1. what is the process of doing so,
    2. was there any admin charges
    3. can this be done by me or a tax expert
    4. was there any IHT

    I have loans with AML, Smartpay and SP management, is my problem X 3 and I have loans well into 6 figures.


    thanks in advance
    1. Ask AML/Knox House. Our experience is that they will write off, once you copy them the HMRC agreement.

    2. Yes. They vary but a few hundred pounds.

    3. The loan is a loan and tax expertise is irrelevant

    4. Almost certainly HMRC will claim that there is.

    Leave a comment:


  • Swan1e
    replied
    I've requested settlement and I'm deciding whether to proceed or not, however has anyone been successful in settling and getting the loans wrote off? if yes
    1. what is the process of doing so,
    2. was there any admin charges
    3. can this be done by me or a tax expert
    4. was there any IHT

    I have loans with AML, Smartpay and SP management, is my problem X 3 and I have loans well into 6 figures.


    thanks in advance

    Leave a comment:


  • ShockedConfused
    replied
    I have been given a settlement figure by hmrc, i only had a small loan period with smartpay and aml i have less then two weeks to reply as been away.
    my settlement is just under 2k.

    so if i settle with them and then try and get the loan written off will i owe more money to hmrc ?

    also not happy with email i got from knox house saying they sold on there obligation.

    Leave a comment:


  • cojak
    replied
    I have moved THL posts to here:

    https://www.contractoruk.com/forums/...e-company.html

    Leave a comment:


  • Yates1992
    replied
    Originally posted by kentishlad View Post
    Hi
    New poster on here and probably as worried and confused as a number of other people here.
    I only used the scheme for around 8 months and have started to go down the route via a company called PTS Limited (as advised in the original letter form Knox and SP Management).
    Apparently I have to give PTS limited my permission to approach SP Management Limited to find out what my figures are. Strangely enough, SP Managment themselves say that this information is held by an 'old SP Management' company (which I cant differentiate from the existing one) which PTS will approach... (why cant SP Management contact SP Management for this?).
    If I recall correctly I was on a certain scheme from October to April when SP Management changed the terms and shifted the arrangement to Malta. As a settlement of tax would this only cover the October to April period? (6 months)

    Hi Did you get anymore information on this? Im only back in UK recently and was part of SP Management Scheme from 2015- 2017 before shutting down my company. I only heard any this loan charge on Friday when its to late to settle now I have no idea what to do, and if I do settle what would stop Knox house from coming after the loan?

    Leave a comment:


  • here4beer
    replied
    Originally posted by Nissan07 View Post
    I requested a settlement from HMRC, but used the term "loans" in the email, which HMRC seemed to pick up on "you’ve reported the amounts paid to you & described as loans from xxx" - should I be concedrned about that?
    I'm not a TA, I'm using one. I'd have thought however, if you're settling to avoid the loan charge it doesn't matter what the money is dressed up as. It is a loan thou, so i don't see the issue. If you'd have called it 'income' I'd be slightly more concerned.

    Leave a comment:

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