AML 2019 Loan Charge

[webberg]

OK that explains things a lot clearer and now makes sense in my head, thank you.

I guess my big fear though, is can AML / Knox House / whoever now turn round and say they want the £700 loan repaid?!

I have no issue paying the tax now due on the loan. Bit scandalous that HMRC can change laws and back date them, but that is what it is and I'm relatively OK with paying the tax. But I now fear getting a request to repay the loan and getting a double whammy.

I'm not a lawyer and I cannot say therefore if the loan is enforceable.

We have in the past used a law firm to resist demands for repayment from our clients (not AML users) and I suspect that there are a lot of grounds - legal- moral- reputation- etc on which repayment can be challenged.

It is a fact that many lenders will agree to write off loans if you settle with HMRC (because it removes the risk that they might be liable for the tax?). You will need to ask AML.

Unfortunately there are firms around who are looking for outrageous fees for this simple act (because you the borrower are between a rock and a hard place and have limited choices) or who have tried to wash their hands (on the surface at least) of any connections.

You will not know until you ask.

[Boydskeet79]

Thank you, your advice and help is truly appreciated.

Now I just need to get AML to cough up the information without charging me £750! I seem to be going in circles, I ask AML and they say Knox House has the info. I ask Knox House and they say PTS has it. PTS say they need to get it from AML and that will cost me £750!!

They have confirmed my total loan amount, but refuse to give me the breakdown by tax year unless I cough up the money. Could I just put all the loans in one financial year (I was in the scheme for 12 months over two years) in settling with HMRC? I know that might mean paying more tax, but I'd rather pay more tax than give PTS £750.

[webberg]

Thank you, your advice and help is truly appreciated.

Now I just need to get AML to cough up the information without charging me £750! I seem to be going in circles, I ask AML and they say Knox House has the info. I ask Knox House and they say PTS has it. PTS say they need to get it from AML and that will cost me £750!!

They have confirmed my total loan amount, but refuse to give me the breakdown by tax year unless I cough up the money. Could I just put all the loans in one financial year (I was in the scheme for 12 months over two years) in settling with HMRC? I know that might mean paying more tax, but I'd rather pay more tax than give PTS £750.

If you have the gross and you know when you worked via that scheme and at what day rate or whatever, it should be simple enough to backsolve to get a decent guess at annual amounts.

HMRC will not be too fussed about the annual allocation so long as they get the gross.

Give me the above data and I'll do it for you for 10% of the fee you've been quoted

(Joking - you can do it yourself for nothing except 30 minutes of time).

[rshome]

Thank you, your advice and help is truly appreciated.

Now I just need to get AML to cough up the information without charging me £750! I seem to be going in circles, I ask AML and they say Knox House has the info. I ask Knox House and they say PTS has it. PTS say they need to get it from AML and that will cost me £750!!

They have confirmed my total loan amount, but refuse to give me the breakdown by tax year unless I cough up the money. Could I just put all the loans in one financial year (I was in the scheme for 12 months over two years) in settling with HMRC? I know that might mean paying more tax, but I'd rather pay more tax than give PTS £750.

I managed to get my breakdown per year by emailing

[email protected]

I was with AML and Knox House Trust. I didn't pay a penny!

[Boydskeet79]

I managed to get my breakdown per year by emailing

[email protected]

I was with AML and Knox House Trust. I didn't pay a penny!

Thanks, I'll give that a go.

[SymonA]

Hi all,
It's my first post on the forum but I managed to go through the most of the pages in this topic and I must say I haven't realised before the scale of this case ;O
I was part of the AML scheme for 3 years, first with AML (via Unified Solutions) and then with Smartpay.
I received the "standard" email about the Loan Charge and the Settlement and was about to sign up to use PTS services on Monday. After all I was ready to accept the fact that all in all - I earned the money and didn't pay tax. I do feel mislead by AML but I simply felt hopeless and didn't see any other alternatives.
I had this hesitation moment and I thought to myself - there must be other people out there having the same problem. I was shocked when came across this forum and read all the posts.

I registered myself to LCAG and want to hear all the options I've got including Big Group - not sure what's their strategy other than they don't recommend settling with HMRC.
One thing I know - I don't want to deal with AML anymore so even if I go for the settlement, I don't want to use PTS services.

Therefore, Mr. @webberg, could you please PM me so I can contact you and discuss the options?

[Desperado]

Hi All

Another new poster tapping into the goldmine of info that this thread offers. Thanks all.

Anyways my experience so far. AML/KHT contractor for just over 4 years, I left the scheme early 2016 and have been PAYE ever since.

Every year I was in the scheme has been the subject of an enquiry by HMRC and 2 years have also been reassesed by them These were appealed by AML and seem to have been in Limbo ever since.

When the LC.19 bomb dropped, I engaged PST to do my settlement. My total loans amount to some 88k but PST reckon the settlement figure should be way less than this as LC.19 only applies to 3rd party loans. Is this a real thing? and if so where did the rest of the money come from? I thought all my loans were 3rd party - ie KHT, but for some reason they say not.

I don't know - they are not pressurising me to go one way or another, It's obviously tempting - but it doesn't feel right and I am already sick of this whole mess. Once bitten etc. HMRC already have some figures direct from AML in response to previous enquiries and I will have to show bank statements so they will know the money came to me. My inclination is to try to settle the whole lot.... depending on the numbers of course.

Incidentally PST are doing the whole settlement for £750, which given the standard contract T&C isn't bad. Maybe dangling the bait of settling at a lower cost is what would get them the big fee. i.e. xx% of any "reduction" negotiated with HMRC. But I'm pretty sure that HMRC don't do haggling. So I guess I'll just let them check the HMRC figures are correct and suck it up.

I am told that the trustees of the loan will be able to release the loan upon confirmation that I have settled with HMRC. Quite what the trigger mechanism is, I don't know yet. I just pray it's correct! Still having an outstanding loan whilst paying tax on it is beyond scary.

[ric_77]

Spoke with PTS on numerous occasions to try and gain some info from them, I had no intention of employing their services. They appeared to be utterly clueless and full of similar nonsense and lies as their AML colleagues, probably because they are the same people.

They said they 'had been told' that the loans would be released by the trust if you were settling via PTS but could not confirm this. They also said that they would come up with a 'deal' for the price to settle as they didnt expect us to pay £3000 plus for this servcie!

In summary, laughable.

[YSTD30]

My little Situation

Good Morning, Afternoon, Evening/Night everyone

Have done plenty of research before dropping this post, a huge thank you to the huge community of people sharing information whilst trying to navigate their way through this trying scenario.

The reason i'm posting is because i've not managed to come across any information regarding my scenario and was wondering if one of you could shine a little light on it for me...

I used the Smartpay AML solution for approximately 4-5months 2014/2015 (after being employed as PAYE elsewhere in that tax period)

HMRC requested and were sent details of the partnership and loan amounts.

I received a letter regarding the loan charge this year regarding settlement. I've been living and working abroad since February with no intention of returning to work in the UK any time soon.

Now with regards to the loans; AML provided me with a breakdown (approx 14k loans with possibly 3k outstanding tax and NIC liability for that year). With regards to the loan charge in April, HMRC will most likely ask for that (plus interest?) but does it come out of my tax free allowance for 2018/2019?

Slightly confused, just trying to get an idea of what will come my way in April if i don't settle as I know exactly what to expect with Settlement.

Thank you so much in advance for any clarity you bring to this...

PS. Appreciate this is a very mild situation compared to the rest of you out there. Thoughts are with everyone in this stormy boat.

[StungWithTheLoanCharge]

Advice/Help on this loan charge

I've pretty much read most of this thread and like most of you I'm also effected by this loan charge. I have signed the petitions and also sent emails to my local MP's but no response as of yet.

I have spoken PTS, which has been a chore to get my loan details off.

@Webberg, do you have some time for a chat, I have been fed so much information from different people and just wanted to clarify a few things. Appreciate your help in advance.

Thanks