AML 2019 Loan Charge

[bleakhse]

This is one of the many issues with this punitive approach from HMRC; the loan still stands and there is nothing to stop it being recalled. Paying HMRC doesn't mean the loan is dealt with. You will need to purchase a deed of release. I've read figures of 5% of the total loan amount to do this.

Not what you wanted to hear I'm sure.

Lets take a step back and try to think about this. Yes, technically AML or Knox house Trust could come demanding the so called 'loans'. However, it can be proved that these were not loans but disguised remuneration. More so if you have settled with the HMRC. The court rulings so far, be it the Rangers case in Scotland, or the AML judicial review are all saying that these were not loans but disguised remuneration.
Please do not fall for another scum of 5% deed of release. That money is better spent arguing for your case in court. Even better if all ex-AML users came together and argue a single case.
If AML came demanding for the loans to be repaid, do not be scared, approach the courts for relief. The courts cannot rule that it is disguised remuneration in favour of the HMRC and then argue that the same disguised remuneration is loans in favour of AML. The logic is twisted. By ruling that the loans are disguised remuneration, that is what the 'loans' are. They cannot be both disguised remuneration and loans.

Even by their own admission, AML in their email of 18th April have unwittingly accepted that these 'loans' were in fact disguised remuneration. Read this extract from the email:
"...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..."
Settlement means paying the tax due on the 'loan'. Now we have all taken bank loans or other regulated financial institution loan. I have never had to pay a tax on those loans. Knox House Trust loans are the only loans I have heard of where the recipient has to pay income tax on a loan.

Guys, the more we see the duplicity of AML/Knox, the more we should take the fight to them.

I suggest we start researching and sharing all the court cases that AML have lost and also other similar cases like the Rangers one. Does anyone know the citation of all the AML cases lost so far at court or FTT?

[Iliketax]

The court rulings so far, be it the Rangers case in Scotland, or the AML judicial review are all saying that these were not loans but disguised remuneration.

I'm not aware of any of the Rangers case decisions where the court said that the loans were not actually loans. You can read the FTT decision here. Murray Group Holdings & Ors v Revenue & Customs [2012] UKFTT 692 (TC) (29 October 2012) Even HMRC said that the loans were not a sham. But that is completely irrelevant (unless you played for Rangers and got such a loan).

Please do not fall for another scum of 5% deed of release.

Absolutely.

The courts cannot rule that it is disguised remuneration in favour of the HMRC and then argue that the same disguised remuneration is loans in favour of AML.

Yes, they can.

By ruling that the loans are disguised remuneration, that is what the 'loans' are. They cannot be both disguised remuneration and loans.

No, I think you have misunderstood the difference between tax law and commercial law.

There may be 101 reasons why the trustee could not enforce repayment. But tax law is not one of them.

[Loan Ranger]

If AML, or any other promoter, tried to recall the loans they'd have a riot on their hands.

It makes me sick that they're now trying to scam substantial sums of money out of people just to release the loans.

There are other promoters who have done this free of charge when people have settled.

[cojak]

Lets take a step back and try to think about this. Yes, technically AML or Knox house Trust could come demanding the so called 'loans'. However, it can be proved that these were not loans but disguised remuneration. More so if you have settled with the HMRC. The court rulings so far, be it the Rangers case in Scotland, or the AML judicial review are all saying that these were not loans but disguised remuneration.
Please do not fall for another scum of 5% deed of release. That money is better spent arguing for your case in court. Even better if all ex-AML users came together and argue a single case.
If AML came demanding for the loans to be repaid, do not be scared, approach the courts for relief. The courts cannot rule that it is disguised remuneration in favour of the HMRC and then argue that the same disguised remuneration is loans in favour of AML. The logic is twisted. By ruling that the loans are disguised remuneration, that is what the 'loans' are. They cannot be both disguised remuneration and loans.

Even by their own admission, AML in their email of 18th April have unwittingly accepted that these 'loans' were in fact disguised remuneration. Read this extract from the email:
"...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..."
Settlement means paying the tax due on the 'loan'. Now we have all taken bank loans or other regulated financial institution loan. I have never had to pay a tax on those loans. Knox House Trust loans are the only loans I have heard of where the recipient has to pay income tax on a loan.

Guys, the more we see the duplicity of AML/Knox, the more we should take the fight to them.

I suggest we start researching and sharing all the court cases that AML have lost and also other similar cases like the Rangers one. Does anyone know the citation of all the AML cases lost so far at court or FTT?

Thank you bleakhse, your contribution to this forum as a view from out the other side is much appreciated.

[BankingContract0r]

If AML, or any other promoter, tried to recall the loans they'd have a riot on their hands.

It makes me sick that they're now trying to scam substantial sums of money out of people just to release the loans.

There are other promoters who have done this free of charge when people have settled.

Do you know if IQ would charge for release?

[stressed]

Thanks Bleakhse and others, really appreciate.

So in a nutshell what I gather:

1. Settle with HMRC to pay the income tax of 'loans' which is technically an income.
2. IF Knox or AML knock on the door to claim back the loan, then take them to court to prove HMRC has declared it as disguised remuneration.

Now couple of Q?
1. Does someone have any link to a publication where AML accepted that as a 'disguised remuneration' as I do not recall any if I am not mistaken. It would be good to keep it as a reference.
2. Can we contractor not just join up now atleast to fight back if AML / Knox comes to us asking for loan repayment and 'WE' all refuse. Can we establish that in this forum and unite is one decision etc asking a long shot. Just thinking out loud any preventive measures, can't really afford to be dragged in any related hell any more.

[CockneyRed]

Personally, I think we should unite and take the fight to AML.... They have lied for years and sat on their hands throughout and now hung us out to dry

[bleakhse]

Thanks Bleakhse and others, really appreciate.

So in a nutshell what I gather:

1. Settle with HMRC to pay the income tax of 'loans' which is technically an income.
2. IF Knox or AML knock on the door to claim back the loan, then take them to court to prove HMRC has declared it as disguised remuneration.

In a nutshell, yes please pay the HMRC their dues. I am only saying this from my own personal experience. Of course each case is unique and has its own specifics. I have shared my experiences on a different AML thread on this forum, https://forums.contractoruk.com/hmrc...ml#post2557342. Obviously each case is unique, and I am not trying to suggest your outcome will be the same as mine, however from what I can infer from my own experience of direct dealing with the HMRC, I am almost inclined to conclude they are treating us all more or less the same - there is very little wriggle room, so honestly the earlier you cooperate with HMRC the better. Take the HMRC's net settlement offer and cut your losses. Please do not continue to lose money to AML/Knox House/...and their other recent guises.

In terms of refusing 'loan' recall by Knox House Trust, yes that one we have to take the fight to them. I have thought about what the contributor, Iliketax said about conflating tax law and commercial law. Yes he is probably right. However suffice to say even in commercial law - contract law to be specific. One of the essential elements of any contract is the contractual intention of the parties. When we signed loan agreement with Knox house Trust, AML had these intentions.
1. Cream off 18% of your earnings or contract value as management fees.
2. Pay you a smaller percentage, roughly 12% as a salary.
3. Lend you the remaining 70% as a loan through Knox House Trust.
4. Come back to you 10/15/20 years down the line and demand the 70% back.(Or sell their rights to a loan shark.)

However the contractor had these intentions based on AML representations through personal illustrations and marketing literature.
1. Retain 82% on my remuneration.

(The loan trustees could demand the loan back has always been verbally explained by Knox House Trust as the vehicle to the efficient tax arrangement. Verbal utterances are also part of the contract - see my email below wherein it is said should you have any questions do not hesitate to call back. A lot was said during those telephone conversations.)

As you can see the parties had different intentions. Whether an enforceable and legally binding contract was really entered into is up for the courts to decide, perhaps under contract law, not tax law. I am not a lawyer and have only read commercial law at school and my trade has nothing to do with law. I am only stimulating your thoughts on this.

Now in my particular case, I have a personal illustration of the 82% retention with my name on it. I have kept every single email, piece of paper, contract, etc that has ever been communicated to me by AML/Knox House/AML Tax. Therefore I am not sure the parties to the loan agreement had their minds converging to the same intention when signing the agreement. If I were to pay them 18% as fees, then pay tax to the HMRC of the remaining 82%, then repay the 70% 'loan' back to them - I do not see how that would yield the 82% remuneration retention that led me to enter into the loan agreement with them. The loan agreement was a tax dodging tool.

Now here is something you need to know and be prepared for. What some of these bogus companies do is that they sell or cede their rights in the loan agreement to some other loan shark and Knox House Trust/AML will disappear from the earth. It will be loan shark that you have never heard of that will come demanding the loan. However I am not fazed by that either. I will not take this lying down, I am preparing for a lengthy legal battle. Bring it on.

Now I do not want to flood you with the nuances, however look at the email below. Those that have read or heard of some little law(I know little knowledge is extremely dangerous!!) will form their views, but I have my ducks lined up and I am collating all evidence against them.

Dear XXXXXXXX
AM Personnel Limited have recommended that you receive an initial interest bearing loan of £XXXXX from the AML PCC Partners Benefit Trust.
Knox House Trustees Limited as trustee has resolved to make this loan to you.

Before the funds can be transferred to your account the Trustee requires you to sign and return the attached Loan Agreement, following the instructions detailed below:

1) Sign the Loan Agreement on page 8 and arrange for a person who is not related to you to witness your signature.
Dating: Please do not date the loan agreement. We will date the agreement on the day that the loan payment is sent to your account.

2) Email or fax a copy of the signed and witnessed page of the Loan Agreement to us:
· Email address: [email protected]
· Fax number: : + 44 (0) 845 5081581
By undertaking points 1 and 2 above, this will allow the Trustee to release only your first PBT payment. For any subsequent payments we will require your original loan agreement.
3) Please post the original inked Loan Agreement to us as soon as possible to:

Knox House Trustees Limited
AML PCC Partners Benefit Trust
Knox House
16-18 Finch Road
Douglas
Isle of Man
IM1 2PT
Please note that if we do not receive your original signed agreement we will be unable to make future loan payments to you.
Please do not hesitate to contact me if you have any queries.
Kind regards,
XXXXXXX
DDI: 01624 631713
W: www.khtlimited.com
T: 01624 631710
F: 08455 081581
Knox House |16-18 Finch Road | Douglas | Isle of Man | IM1 2PT

I do not represent the interest of the HMRC. I am only trying to assist as someone that went through what you are all going through now, please work together with the HMRC. They do not bite or kill you and they are nothing to be scared of. I once was scared of them, but I grew too accustomed to them that the brown envelope has become routine mail to me.

[bleakhse]

Personally, I think we should unite and take the fight to AML.... They have lied for years and sat on their hands throughout and now hung us out to dry

I couldn't agree more. We have to unite and fight for our own survival. If we don't, they will come and have each and every one of us for breakfast, lunch, dinner and after dinner drinks until we are all finished. Look at them enjoying your 18%.....https://www.mirror.co.uk/news/uk-new...helle-11107052

There are real people and faces behind AML and they are living large on your monies, and they will be coming for more if we do not stand together.

[THISISWRONG]

I couldn't agree more. We have to unite and fight for our own survival. If we don't, they will come and have each and every one of us for breakfast, lunch, dinner and after dinner drinks until we are all finished. Look at them enjoying your 18%.....https://www.mirror.co.uk/news/uk-new...helle-11107052

There are real people and faces behind AML and they are living large on your monies, and they will be coming for more if we do not stand together.

Anybody fancy a trip to the Isle of Man?
I have no idea how they sleep at night!