AML 2019 Loan Charge

[Genesis]

OK, call me naïve, but has anyone actually received any bona fide correspondence from HMRC about this 31st May 2018 cut off or is it documented on their website? The Loan Charge 2019.... when and where was this published?

It's just that I spoke to my Umbrella and this was the first they had heard of AML/KHT sending out these hastily arranged emails, saying we have until 31st May to register our interest in settling with HMRC.

When you factor in the perceived/known marriage of co-existence between PST/Vanquish/AML and the extortionate fees that they are requesting in order to 'help' us.... I do smell a rat here.

Could this be AML/KHT trying to worm their way out of potential penalties applied to them if they lose their litigation with HMRC (first tier tax case)? You settle or repay the loan and therefore you're one less problem for them. It all sounds far to coincidental and convenient that no one has actually had any formal notification from HMRC to say, oy mate.... your due us £xxx due to DR in tax year x/y/z.

I have had a letter from them last year saying they believe I've been part of a DR scheme and ask for more details, but that was it.

Or has absolutely anyone who's had a Self Assessment submitted by an AML type company prior to 2016, gonna get a tap on the shoulder at some point down the line - regardless?

Like I said, my Umbrella was slightly taken aback by this news and when I shared AML's email with them. Now, they could've been living under a rock for the past few years, I don't know. But they do strike me as being abreast of the latest tax legislation and this tact by AML struck them as odd.

I'm just not very clear on the timeline of events here in that I can't see the benefit of the 31st May deadline, when HMRC have never formally informed me of it. And throw into the mix the fact that AML, on all our behalfs, asked HMRC for a closure notice or whatever it was for our tax responsibilities, so they could go back with a counter claim.... that's all gone dead in the water. Surely 2017 all of this LC2019 stuff would have been known... so why the sudden, very sudden change of tact?

[MLeggsy]

OK, call me naïve, but has anyone actually received any bona fide correspondence from HMRC about this 31st May 2018 cut off or is it documented on their website? The Loan Charge 2019.... when and where was this published?

It's just that I spoke to my Umbrella and this was the first they had heard of AML/KHT sending out these hastily arranged emails, saying we have until 31st May to register our interest in settling with HMRC.

When you factor in the perceived/known marriage of co-existence between PST/Vanquish/AML and the extortionate fees that they are requesting in order to 'help' us.... I do smell a rat here.

Could this be AML/KHT trying to worm their way out of potential penalties applied to them if they lose their litigation with HMRC (first tier tax case)? You settle or repay the loan and therefore you're one less problem for them. It all sounds far to coincidental and convenient that no one has actually had any formal notification from HMRC to say, oy mate.... your due us £xxx due to DR in tax year x/y/z.

I have had a letter from them last year saying they believe I've been part of a DR scheme and ask for more details, but that was it.

Or has absolutely anyone who's had a Self Assessment submitted by an AML type company prior to 2016, gonna get a tap on the shoulder at some point down the line - regardless?

Like I said, my Umbrella was slightly taken aback by this news and when I shared AML's email with them. Now, they could've been living under a rock for the past few years, I don't know. But they do strike me as being abreast of the latest tax legislation and this tact by AML struck them as odd.

I'm just not very clear on the timeline of events here in that I can't see the benefit of the 31st May deadline, when HMRC have never formally informed me of it. And throw into the mix the fact that AML, on all our behalfs, asked HMRC for a closure notice or whatever it was for our tax responsibilities, so they could go back with a counter claim.... that's all gone dead in the water. Surely 2017 all of this LC2019 stuff would have been known... so why the sudden, very sudden change of tact?

Morning Genesis,

It's real....

To start settling your tax affairs, you should register your interest with HMRC by 31 May 2018.

Government Website link here:

https://www.gov.uk/guidance/disguise...ur-tax-affairs

MLeggsy

[joed]

Morning Genesis,

It's real....

To start settling your tax affairs, you should register your interest with HMRC by 31 May 2018.

Government Website link here:

https://www.gov.uk/guidance/disguise...ur-tax-affairs

MLeggsy

I looked at that website and they still talk about 'penalties'. I understood penalties to be applied if you submitted returns late? All my returns submitted on time, the challenge they have is on the amount due. can someone confirm?

Also what is a 'benefit in kind' offset?

[catanonia]

Are you stating that expenses deduction was used in your negotiations with HMRC?

I was under impression HMRC would not allow such deductions.

When I was contracting, I was travelling 140 miles a day to and from work. I was not claiming for this as AML advised with was not possible or would get queried. So as a newbie, I took their advice.

My accountant negotiated with HMRC and they agreed I could claim this as they were insisting I payed tax on earnings / loans and therefore I had a right to claim the mileage expenses.
We didn't go as far as claiming other expenses as they were neglegiable in comparison to the mileage and would only wind HMRC up more.
They accepted, adjusted the figures to that what my accountant gave them and we are in then final stages of settlement and payment.

Now I knew within 10 months (out of 18 I was with AML) that this was dodgy (around the Jimmy Carr incident) and so I ensured I stashed the money and made plans to get out. It took a bit of time to make the decision, but I am glad I did.

Hope this helps, obviously the circumstances may be different for everyone else.

Good luck

[APNMISERY21]

I’m finding that when my clients register interest it’s taking anything from 3 to 15 weeks for HMRC to respond. I expect that as the deadline approaches the delays will increase.
If anyone wants a chat about the process feel free to PM me.
Not a sales push - I’ll just explain the process as I have for many of the users on this forum.

I can verify Phil's approach. He's helping me and has been incredibly helpful, candid and honest about all options.

Certainly give him a call if you're wanting an informal chat. That's where I started and I'm really pleased I did.

An all round good egg...

[Babayaga]

I’m finding that when my clients register interest it’s taking anything from 3 to 15 weeks for HMRC to respond. I expect that as the deadline approaches the delays will increase.
If anyone wants a chat about the process feel free to PM me.
Not a sales push - I’ll just explain the process as I have for many of the users on this forum.

Hi Phil,

Would love to have a chat but I've only just registered and unable to pm you.

Thanks

A

[webberg]

Appreciate that this is a shock to many but there are some hard facts here.

First, the HMRC settlement offer was made in November 2017 and is the second time one has been made.

Second, the DR Charge in 2019 is real, in law (FA 2017 et seq) and unless it is reversed by Parliament, will happen.

Third, HMRC settlement is a take it or leave it approach. I note the post above about including some expenses, but it looks to me as though that was done outside the formal terms. Well done to you.

Fourth, if you choose to use a tax avoidance scheme to mitigate a tax avoidance scheme, expect enquiry which may lead to increased taxes (or of course, none). If tempted get guarantees and sight of a fighting fund.

Last, an independent adviser is more likely to be honest with you. There are plenty of us here and whilst fees may be your primary driver, quality is more important.

Think over the weekend, research, call a few advisers and then decide.

[catanonia]

Appreciate that this is a shock to many but there are some hard facts here.

First, the HMRC settlement offer was made in November 2017 and is the second time one has been made.

Second, the DR Charge in 2019 is real, in law (FA 2017 et seq) and unless it is reversed by Parliament, will happen.

Third, HMRC settlement is a take it or leave it approach. I note the post above about including some expenses, but it looks to me as though that was done outside the formal terms. Well done to you.

Fourth, if you choose to use a tax avoidance scheme to mitigate a tax avoidance scheme, expect enquiry which may lead to increased taxes (or of course, none). If tempted get guarantees and sight of a fighting fund.

Last, an independent adviser is more likely to be honest with you. There are plenty of us here and whilst fees may be your primary driver, quality is more important.

Think over the weekend, research, call a few advisers and then decide.

Very good advice and I urge everyone to read this.

[Runster]

Appreciate that this is a shock to many but there are some hard facts here.

First, the HMRC settlement offer was made in November 2017 and is the second time one has been made.

Second, the DR Charge in 2019 is real, in law (FA 2017 et seq) and unless it is reversed by Parliament, will happen.

Third, HMRC settlement is a take it or leave it approach. I note the post above about including some expenses, but it looks to me as though that was done outside the formal terms. Well done to you.

Fourth, if you choose to use a tax avoidance scheme to mitigate a tax avoidance scheme, expect enquiry which may lead to increased taxes (or of course, none). If tempted get guarantees and sight of a fighting fund.

Last, an independent adviser is more likely to be honest with you. There are plenty of us here and whilst fees may be your primary driver, quality is more important.

Think over the weekend, research, call a few advisers and then decide.

Hi webberg - could we have a chat?

[esemi]

How long have people used this scheme?

I was wondering how long most people have been with AML and hence built up the tax amount owed?
I did 18 months with them between 2011 and 2013.
Has anyone done more than that?