AML 2019 Loan Charge

[LOCA19]

HMRC / Ireland

Hi Tony, I'm Irish and worked in the AML system. I'm now in Ireland and have received the HMRC Loan Charge letter. I took advice and I have been advised that there is an EU agreement that allows one country to chase down the Tax debts where those debts arose abroad. As an example a Polish national was chased down in Ireland for not paying Capital Gains Tax on the sale of a house in Poland. There is no hiding.

hi,

I moved to Ireland in 2013 (South). I recently got a letter from hmrc re 2019 loan change.

Tempted to settle and tempted to do nothing - fed up with the uncertainty. I have some assets in the UK.

Can HMRC come after me in South of Ireland? If they cant and if the cant take my assets in the UK then why would i settle?

Is anyone in this board based in the south of Ireland or in another EU country? I would be really interested to hear from you.

Kind Regards
Tony

[thoma1820]

Received LCA letter from HMRC

Hi,
I have received a letter from HMRC today with the reference LCA, it says,

I am writing to you as I believe you've used a tax avoidance scheme. As part of this scheme you received a loan or credit instead of income and you haven't paid tax or national insurance on this. we call this disguised remuneration.


There are no figures or year this has happened on the letter. I was a permanent resident in Isle of Man but used to do come contracting in the UK. I have now returned to UK full time since 2016 June.

I tried calling them on 03000534226 but no response.

What should I do? any suggestions? DO I have to worry about this letter or is this a generic letter HMRC send to anyone who did contracting in the past regardless of any schemes they have used?

Please help. Thank you

[piebaps]

Hi,
I have received a letter from HMRC today with the reference LCA, it says,

I am writing to you as I believe you've used a tax avoidance scheme. As part of this scheme you received a loan or credit instead of income and you haven't paid tax or national insurance on this. we call this disguised remuneration.


There are no figures or year this has happened on the letter. I was a permanent resident in Isle of Man but used to do come contracting in the UK. I have now returned to UK full time since 2016 June.

I tried calling them on 03000534226 but no response.

What should I do? any suggestions? DO I have to worry about this letter or is this a generic letter HMRC send to anyone who did contracting in the past regardless of any schemes they have used?

Please help. Thank you

Thoma - if you were resident in the Isle of Man you will need to consider the IOM tax position too and make sure that your earnings were fully declared to their authorities. AML schemes are aimed at UK taxation and the IOM may have different rules. There is also a 1955 double taxation agreement between the IOM and UK which may help assign taxing rights. This is a case IMHO for specialist professional advice.

[GreenMirror]

Hi,
I have received a letter from HMRC today with the reference LCA, it says,

I am writing to you as I believe you've used a tax avoidance scheme. As part of this scheme you received a loan or credit instead of income and you haven't paid tax or national insurance on this. we call this disguised remuneration.


There are no figures or year this has happened on the letter. I was a permanent resident in Isle of Man but used to do come contracting in the UK. I have now returned to UK full time since 2016 June.

I tried calling them on 03000534226 but no response.

What should I do? any suggestions? DO I have to worry about this letter or is this a generic letter HMRC send to anyone who did contracting in the past regardless of any schemes they have used?

Please help. Thank you

In general you pay tax in the country where it was earned. When you contracted, did you use a UK limited, a IoM limited or some sort of scheme?

You always have to do something about letters like this - most people here approach webberg or phil@dswtres who are both highly recommended by several.

If you call HMRC, all they will do is ask for more information. They will not help and will only make matters worse. One person called HMRC saying they were suicidal and were told they could not be helped unless they settled.

[ssg787]

Thank you

You need 6 posts before PM rights are given, Admin has been ask to waive this for you.

I was not aware of this. Much appreciated

[ssg787]

Advisers with integrity

Good Afternoon Webberg. May i ask if you are able to comment. I have read many of the posts on here this morning. I spoke with Vanquish who directed me to PTS. They mentioned a change of practice by Smartpay in April 2016 which changed the tax position. Are you familiar with what Vanquish mean?

Dear Webberg (sorry new here and anxious) would you be able to suggest advisers with integrity that can help us navigate through this minefield?

[ssg787]

Confusion

By all means engage an advisor if you don't feel confident dealing with HMRC yourself but please use an independent advisor. Don't give AML, because PTS is owned by the same people, any more of your money. It's not just the tax side of things you need to deal with but the loans themselves. You don't want to settle with HMRC only for the Knox Trustee to come after you for the loans in the future.

I don't understand this point. If we settled with HMRC is there still a risk of Knox pursuing the contractor? How is this legally closed?

[ssg787]

Experience

VIPs, I’m in the same (worse) boat as you with not much of a paddle. PM me when you are able.

I don't have enough posts to PM yet but would appreciate learning what you have from the process. Thank you

[cojak]

Dear Webberg (sorry new here and anxious) would you be able to suggest advisers with integrity that can help us navigate through this minefield?

I would suggest webberg or phil@dwtes.

Or https://www.hmrcloancharge.info

[ssg787]

Expertise

If you repay your loans, you still have to provide info on them by 30 Sept 2019.

Anyone doing this should be prepared for close scrutiny from HMRC. Make sure you have all your ducks in a row.

Are you an adviser by any chance or just a well informed party with an interest in tax?