AML 2019 Loan Charge

[Victory Lap]

I've just registered on this forum today.

Late last week, I too have received the same emails from AML and Knox House Trust and as of today received the same emails from SP Management and another from Knox House Trust (same email as last week).

I'm rather concerned to say the least. Since 2011 I was in one solution or another with AML, SmartPay and latterly with SP Management (for 5 months in 2016 with a Ltd Company setup). All in all, a total of 43 months.

I haven't been in a planning solution with AML or their associated companies since September 2016. In fact, I haven't worked since then due to taking time out to deal with a personal family matter.

All my Self Assessment Tax Returns have been or are being investigated by HMRC. HMRC have issued notice to pay for the first two years (2011-12 and 2012-13) which are currently under appeal. I'm aware interest will be accumulating on these amounts.

Like many on here, I am now quite concerned.

[simpleman]

I received my email from Knox & SP Management yesterday (24th Apr 2018) as well as duplicates from both today.

Firstly I just wanted to thank everyone who has shared their experiences on this post as it's been really helpful and supportive knowing that we're not alone. This is a potentially life changing scenario for some.

I'm useless with 'finance speak' and even more so with 'law speak' but if I have understood the situation correctly:

1. I paid [Management Company] my monthly wages.
2. [Management Company] paid me back my wages minus taxes as a loan payment.
3. HMRC declares that all loans in this scheme now have to be settled.
4. [Management Company] then offers a deal whereby we pay off this loan (which was our money to begin with).

I've grossly simplified my understanding of this situation but if this is correct then this... is... insane...

Again if I'm understand correct, from reading this thread it sounds like the best option is to settle with HMRC and pay the taxes on the loan amount (35%?).

My situation is that I used this scheme between Jun 2016 - Mar 2017 and received loan payments totalling £38k. Does this mean I am facing a potential charge of £13300 (plus penalties plus interest)? Is that correct?

What scares me though is the example scenario provided by Knox.

EXAMPLE CONTRACTOR SCENARIO
A contractor was involved in an arrangement from 2008/09 until 2010/11. They received a retainer each year equal to the Personal Allowance and loans of £50,000 in 2008/09, £60,000 in 2009/10 and £70,000 in 2010/11. They have had no enquiries or assessments from HMRC.

The contractor is now employed and is expected to be earning £100,000 a year in 2019/20 with tax deducted under PAYE.

Their total tax liability under the CLSO for the three years is around £50,000.

In comparison the loan charge would mean that on top of the tax due on the PAYE income, it will increase their tax liability for 2019/20 by £83,300.

Repaying the loan will cost £180,000.

In this scenario the contractor has to return the full loan amount. Could someone clarify?

[jazzyg]

I am interested to know how to tell the difference between a rogue adviser and a proper adviser?

• Rogue advisor will usually not be able to meet you face to face.
• Promise something which sounds too good to be true
• Most likely advise you to get into another scheme which would involve them taking cut of total money that you pay
• Will try and pressure sell his approach

These are just few things you would find. Speak to Tax advisors at WTT and few other genuine firms that are UK based and not linked to any of the scheme providers.

[LandRover]

I am interested to know how to tell the difference between a rogue adviser and a proper adviser?

Totally understandable question when thousands of us have been let badly down by so-called professional Chartered Accountants, who advised(sold) us into this nightmare.

[TerrifiedContractor]

People are saying we deserve this, but when I signed up to SPM I asked repeatedly if it was legal, I told them I wanted no nasty surprises in the future, for all deductions to be taken at source and my weekly net pay to be my true net pay.
I asked them why they use the term 'loan', they reassured me that it wasn't a real loan and that I wouldn't have to repay anything.
I have been a contractor for 25 years and have very little savings.

I understand that HMRC want to close a loophole but surely to charge us retrospectively should be illegal, . I also feel SPM etc. should share some liability for this, they made assurances that just aren't true.

I'm probably not saying anything that hasn't been said already but I am terrified.

[catesby]

People are saying we deserve this, but when I signed up to SPM I asked repeatedly if it was legal, I told them I wanted no nasty surprises in the future, for all deductions to be taken at source and my weekly net pay to be my true net pay.
I asked them why they use the term 'loan', they reassured me that it wasn't a real loan and that I wouldn't have to repay anything.
I have been a contractor for 25 years and have very little savings.

I understand that HMRC want to close a loophole but surely to charge us retrospectively should be illegal, . I also feel SPM etc. should share some liability for this, they made assurances that just aren't true.

I'm probably not saying anything that hasn't been said already but I am terrified.

As others long before me here have said, you are definitely not alone. I asked exactly the same questions and was given all the same guarantees and assurances by these providers. The whole debacle is daunting and unsettling - and I have no doubt that it has been a life-changing moment for many.
Read as much as you can and make contact with those on this forum who regularly post to offer advice, knowledge, counsel and support - you'll need their expertise and opinion to navigate this abysmal mess we all now find ourselves dealing with. Good luck.

[Victory Lap]

Is it possible to confirm whether anyone who is CURRENTLY still using AML / SmartPay / SP Management etc. has received the emails regarding the 2019 Loan Charge Legislation / CLSO ?

From what I have read from previous posts on this thread it appears that only those who were previously with AML / SmartPay / SP Management etc. but no longer with them, have received the emails.

A friend of mine who is currently still using AML's solution (and has consistently used AML since 2011) has NOT received any emails from AML and Knox House Trust (or associated companies) re: 2019 Loan Charge Legislation / CLSO. Personally, I have not used them since Sept. 2016 and I have received the emails.

My trust of AML / SmartPay / SP Management etc. has gone so can't help being suspicious.
Are they throwing their previous clients (i.e. us) under the bus?

Can anyone comment on this please?

[phil@pmtc]

Is it possible to confirm whether anyone who is CURRENTLY still using AML / SmartPay / SP Management etc. has received the emails regarding the 2019 Loan Charge Legislation / CLSO ?

From what I have read from previous posts on this thread it appears that only those who were previously with AML / SmartPay / SP Management etc. but no longer with them, have received the emails.

A friend of mine who is currently still using AML's solution (and has consistently used AML since 2011) has NOT received any emails from AML and Knox House Trust (or associated companies) re: 2019 Loan Charge Legislation / CLSO. Personally, I have not used them since Sept. 2016 and I have received the emails.

My trust of AML / SmartPay / SP Management etc. has gone so can't help being suspicious.
Are they throwing their previous clients (i.e. us) under the bus?

Can anyone comment on this please?

As I’ve repeatedly told people that call, I would rather clients used rivals of my own firm before using any advisor that is offering a miracle solution as one simply doesn’t exist unfortunately. If you (or anyone) wishes to have no obligation chat regarding the latest on the loan charge I’m happy to do so. (Either pm me or just search via google where you will find my details).

[AprilNewStart]

DM possible?

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.

How do you DM someone on here? Thanks.

[regron]

Is it possible to confirm whether anyone who is CURRENTLY still using AML / SmartPay / SP Management etc. has received the emails regarding the 2019 Loan Charge Legislation / CLSO ?

From what I have read from previous posts on this thread it appears that only those who were previously with AML / SmartPay / SP Management etc. but no longer with them, have received the emails.

A friend of mine who is currently still using AML's solution (and has consistently used AML since 2011) has NOT received any emails from AML and Knox House Trust (or associated companies) re: 2019 Loan Charge Legislation / CLSO. Personally, I have not used them since Sept. 2016 and I have received the emails.

My trust of AML / SmartPay / SP Management etc. has gone so can't help being suspicious.
Are they throwing their previous clients (i.e. us) under the bus?

Can anyone comment on this please?

Simple case of AML not wanting to scare their current clients away, who they are still making money from, before they legally have to.