I wonder how many other users are in the dark about LC19?

[cojak]

I would, appreciate any info you could provide but none like 'You were naïve' etc. please. No KIDDING!!

That type of posting is not allowed in this forum joed.

[webberg]

First question - If they are now asking me to declare all income as employment income, I should be then classed as Self Employed for the years in question right? I was not working for any company direct, only using an agent and AML to process the payments for me. I would be due to pay all income tax and NI for the yrs in question at the rates in effect at that time, and any allowances I could claim, which due to my 'now classed as employment income' punts me out of any personal allowances but I do get to retain my married couples allowance... right? ?

Question 2 - If the above is correct, which seems reasonable to me, then I must be able to claim reasonable and allowable expenses incurred during the execution of my work. This involved lots of driving to meetings at various places, overnight stays in hotels, air/train travel, mobile phone charges, etc., all normal expenses for a self employed person and substantiated with travel records, receipts etc. right?

Question 3 - Does anyone know of any other allowances? Can I claim educational fees etc if directly attributable to my employment ie; on-line courses etc? What about business development? I spent a lot of personal time investigating another business venture which in the end I did not pursue, but in the meantime had prepared lots of design work - drawings, layouts etc. met with property people and business developers, agents etc and also set up a website etc. Can I reclaim all of this even though in the end I did not pursue that business venture?

Question 4 - I would like to make an advance payment in order to limit the hemorrhaging of cash due to interest charges. Can I just send it to their sort code and bank account and send a letter including my case no, reference number or whatever, telling them I've sent a payment? I assume they can't charge me interest on that part of the outstanding balance if it's in their account right?

!

I can't and won't comment on what PTS may have told you.

Q1. HMRC claim that the loans are taxable income either from an employment or a self employment. This increases your income but it will depend on how much as to whether you might lose personal allowances. You lose PA at £1 per £2 of income over £100,000. Married persons allowances will depend on circumstances. If the additional income pushes you into higher rates be aware that child benefit may become taxable.

Q2. You have two issues with claiming expenses. The first is timing. You need to claim within 4 years of a tax year end. Beyond that, it becomes more difficult and perhaps impossible. The second is evidence. What do you have in terms of receipts etc? The hurdle of proof is high.

Q3. No you cannot claim for expenses that did not lead to a potentially taxable income stream. See Q2 re other costs.

Q4. You can make a payment on account. There are a number of rules as to how your HMRC account operates and it's not a question of being able to allocate money against a particular liability, but more a matching of payments against outstanding liability on a first in, first out basis.

You need to spend a couple of hours this weekend getting up to speed and then if you remain unclear, pick 2 or 3 advisers and call them.

Remember that for preference, an adviser should be demonstrably unbiased and not connected to promoters etc.

I can help you and there are other advisers here who I'm sure are equally capable. PM me and/or them.

[webberg]

Claypole and surreypanic.

First - deep breath, pause and think. Nothing is going to happen immediately.

The notice from AML is advisory in part. It tells you what HMRC is planning in 2019.

(Those elements pointing you towards an adviser and "solution" have attracted comment elsewhere and I'll not add to them).

HMRC believe that the payments you had from AML are taxable. In order to force you to pay, there is a tax charge in 2018/19, payable 31st January 2020, which works by adding the loans/advances to your income in 18/19. Many of us believe that this is retrospective tax law. HMRC and politicians use semantics to argue otherwise. Either way, it's the law and we have to deal with it.

Your choices are:

Settle via HMRC offer. This taxes all the payments in the year paid by adding them to your other income in those years. Interest is added to the tax. Perhaps some NIC for some years. Perhaps some IHT on some schemes. You may be able to negotiate a time to pay. HMRC claim up to 7 years is available. In practice 2 to 4 years. You need to register by 31st May and given the backlog in HMRC, you are likely to see final figures and agreement Q1 2019.

Litigate. We know AML are in this process. Upside is a win means no tax. Downside is time (4 to 5 years from now) and perhaps fees. To date AML has not asked for a contribution but given that the company is no longer extant in the Knox Group, who knows what will happen in the future?

Resolution via discussion. Upside is that an agreed position will produce a lower tax value within a quicker time frame than litigating. Downside is that there is no guarantee of success and there is a fee. Most of the advisers active here have some form of resolution process in train.

Do not:

Join another tax avoidance scheme to mitigate the effects of what HMRC claim is the tax avoidance scheme you have already done. That will lead to at least a long enquiry from HMRC and the chances of success are (in my opinion) low.

Repay loans unless you are sure and have assurances that such action will remove the tax charges.

Do anything hasty.

Happy to be PM'd as I'm sure the other advisers here.

[ozzyo99]

Your choices are:

Settle via HMRC offer. This taxes all the payments in the year paid by adding them to your other income in those years. Interest is added to the tax. Perhaps some NIC for some years. Perhaps some IHT on some schemes. You may be able to negotiate a time to pay. HMRC claim up to 7 years is available. In practice 2 to 4 years. You need to register by 31st May and given the backlog in HMRC, you are likely to see final figures and agreement Q1 2019.

Litigate. We know AML are in this process. Upside is a win means no tax. Downside is time (4 to 5 years from now) and perhaps fees. To date AML has not asked for a contribution but given that the company is no longer extant in the Knox Group, who knows what will happen in the future?

Resolution via discussion. Upside is that an agreed position will produce a lower tax value within a quicker time frame than litigating. Downside is that there is no guarantee of success and there is a fee. Most of the advisers active here have some form of resolution process in train.

Perhaps we can use my figures as an example, and what it means to me in each case? I've been thinking about all avenues after we spoke yesterday webberg. The key area of interests are [obviously] the total amount each avenue shall likely eventually cost, and the speed/immediacy for which I shall be required to pay.

My profile: £210k loan, est. 75-80k liability

1. Settlement, find final figure, agree repayment period [I'd love some additional information on how this is agreed and what the biggest pawns are in extending matters to the 4/5 year timescale]. Likely scenario, agree to repay 75k~ over 2-3 years?

2. Litigate, I asked on the phone yesterday for an update on their case but was told this information is for those already under investigation. I personally don't pin too much hope on this, but if you have any knowledge I'd welcome it.

3. Resolution, what is the likely reduction offered via resolution, 5%? Does that mean that in Jan 2020 I am ordered to pay 75K immediately and to argue about it later?

I can pay I expect through tightening of my belt until Q1, possible remortgage and some slush/family assistance, but the longer I can get obviously the better it is for me in practice.

My goal would be to pay 40K on the spot, with the other 40K being spread over 5 years for which I wouldn't be unduly impacted - i.e I could keep my house and keep my children in good education, the rest, if it means me eating stale bread for 5 years I will do, gladly.

[webberg]

I'm happy to discuss but not here.

contact me via our info email address or my own please.

[BLOWNOVER]

Almost speechless!

Well, there I was enjoying a nice morning cup of tea whilst catching up on my emails 2 days ago. I noticed a name I had not had any dealings with for several years and thought, no, I must be seeing things. But oh no, I was NOT! After reading them I nearly had to lie down I was so utterly shocked and stunned!! Yes, I too had just been told by AML of the nice surprise HMRC might have in store for me.

I had absolutely no idea or any inkling WHATSOEVER of any of this, having severed my connection after a relatively short period of time with them as I wasn't 'comfortable' with the scheme a colleague had recommended.

But, as stated frequently in the many posts and info I have now crammed into my head over the last 48 hours, there's no use crying over ........ It has to be dealt with.

So, what to do? My first port of call was my accountant and even he wasn't clued up on it. Thankfully this forum came up on my radar. So personally, I have decided that being as I am not equipped to tackle this on my own right now, I shall ask for professional advice. To that end I have arranged a telecon with WTT on Monday.

I would just like to say I am grateful to the professionals like webberg and phil@ for their sensible and calming words. And for all the others who have shared their experiences of what is still at the moment a living nightmare. Good luck to all in their future battles!!

[LandRover]

Well, there I was enjoying a nice morning cup of tea whilst catching up on my emails 2 days ago. I noticed a name I had not had any dealings with for several years and thought, no, I must be seeing things. But oh no, I was NOT! After reading them I nearly had to lie down I was so utterly shocked and stunned!! Yes, I too had just been told by AML of the nice surprise HMRC might have in store for me.

I had absolutely no idea or any inkling WHATSOEVER of any of this, having severed my connection after a relatively short period of time with them as I wasn't 'comfortable' with the scheme a colleague had recommended.

But, as stated frequently in the many posts and info I have now crammed into my head over the last 48 hours, there's no use crying over ........ It has to be dealt with.

So, what to do? My first port of call was my accountant and even he wasn't clued up on it. Thankfully this forum came up on my radar. So personally, I have decided that being as I am not equipped to tackle this on my own right now, I shall ask for professional advice. To that end I have arranged a telecon with WTT on Monday.

I would just like to say I am grateful to the professionals like webberg and phil@ for their sensible and calming words. And for all the others who have shared their experiences of what is still at the moment a living nightmare. Good luck to all in their future battles!!

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

[catesby]

We've probably spoken with 50+ people in the last few days.

These are either AML users or another scheme where the trustee recently sent out a "be warned" note.

I would say perhaps 20 had no idea what was happening - never had HMRC enquiry - never heard of the charge.

If that very unscientific poll is true, then HMRC's alleged 65,000 impacted people is light by around 40,000 or so?

That brings us to around 100,000 which is closer to our estimate.

That includes me - if this forum hadn't existed, I would honestly have no clue what to do - it feels like a life-raft at the moment. I've been working through PCL (AML) and SP in the IoM (although I am now aware that it's effectively all one and the same entity) in recent years and the first I knew of any LC legislation was the resounding clatter as the emails dropped into my account last week.

My call with WTT scheduled for next week can't come round soon enough....

[cojak]

I'm sure that this isn’t needed yet, but just to let you know it’s there

Please read if you are desperate and feel you are running out of options.

[catesby]

I'm sure that this isn’t needed yet, but just to let you know it’s there

please-read-if-you-desperate-feel-you-running-out-options.html

...in gratitude, once again.