AML 2019 Loan Charge

[esemi]

Legally I guess they could call the loans back in. Am I right?

[catanonia]

Legally I guess they could call the loans back in. Am I right?

Now this gets messy as the loan was actually my money they took and gave back to me (without tax) that I have paid off. Because I paid the tax, and HMRC made me do it, they have admitted it was my money in the 1st place.
Or am I totally wrong here ?

[MLeggsy]

Now this gets messy as the loan was actually my money they took and gave back to me (without tax) that I have paid off. Because I paid the tax, and HMRC made me do it, they have admitted it was my money in the 1st place.
Or am I totally wrong here ?

Hi catanonia,

Your adviser should be sorting the loan release as part of settling your position.

MLeggsy

[LandRover]

We should all be angry and appalled at what HMRC have managed to pull off in getting this punitive retrospective legislation passed by our blind MPs.

Sadly many are now waking up to this nightmare. The estimates from HMRC of 40,000 people affected are woeful and many predict 100,000 plus.

Get on twitter and demonstrate your utter contempt for this vindictive retrospective legislation.

Join like minded groups who are outraged by this. Write to your MP, let him know how devastating this is, the MPs have blindly allowed HMRC to get off with their incompetence.

https://www.hmrcloancharge.info/

https://twitter.com/LCAG_2019

[catanonia]

Hi catanonia,

Your adviser should be sorting the loan release as part of settling your position.

MLeggsy

Not sure he is, he is my accountant dealing with HMRC, but no talk about the loan. I will need to talk to him as this I had never thought about until I joined the forum. Just when I thought this will soon all be over, more hassle.

[MLeggsy]

Never ending...

Not sure he is, he is my accountant dealing with HMRC, but no talk about the loan. I will need to talk to him as this I had never thought about until I joined the forum. Just when I thought this will soon all be over, more hassle.

It will soon be over, keep going

MLeggsy

[webberg]

Now this gets messy as the loan was actually my money they took and gave back to me (without tax) that I have paid off. Because I paid the tax, and HMRC made me do it, they have admitted it was my money in the 1st place.
Or am I totally wrong here ?

I think you are incorrect.

The HMRC analysis is that the money flowed as follows:

end user > agency > promoter intermediary > promoter > trust/lender > loan to you.
>
salary to you

For tax purposes, the moment the promoter pays the salary to you, they are deemed to have also made available the amount you eventually got as a loan and the aggregate is taxable.

Therefore to preserve the legal integrity here, it was YOUR money that went to the trust/lender and which they used to lend back to you.

If your accountant is floundering, find one who specialises.

Otherwise, you're going to pay your accountant £200 an hour to teach himself the rules. (Bear in mind that this is a complicated area that has been under enquiry for 15+ years and that is a lot of catching up.)

[catanonia]

It will soon be over, keep going

MLeggsy

thanks, pinged an email to my accountant to see what he can / can't do

[catanonia]

I think you are incorrect.

The HMRC analysis is that the money flowed as follows:

end user > agency > promoter intermediary > promoter > trust/lender > loan to you.
>
salary to you

For tax purposes, the moment the promoter pays the salary to you, they are deemed to have also made available the amount you eventually got as a loan and the aggregate is taxable.

Therefore to preserve the legal integrity here, it was YOUR money that went to the trust/lender and which they used to lend back to you.

If your accountant is floundering, find one who specialises.

Otherwise, you're going to pay your accountant £200 an hour to teach himself the rules. (Bear in mind that this is a complicated area that has been under enquiry for 15+ years and that is a lot of catching up.)

Thanks for your post, if I struggle is this something we could deal with between us privately ?

[catesby]

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.