HMRC settlement Deadlines/delays and the LC

[starstruck]

Hi Guys,

Did anyone tried to settle the dispute with HMRC? If yes, can you please share the experience? They have sent me a bill, which may be manageable provided they give few years to settle. I am deciding whether to go with the Big Group or to go for a settlement with HMRC, WTT (Big group) cost is more than 15% of my settlement amount. My contracting experience was just 13 months of my life and never thought it will end up this way

Any help would be appreciated.

Thanks,

I believe BG publicly estimate their chance of success at 65% (it was posted on here somewhere) and in my opinion that success, if it does happen, is not going to happen before the loan charge hits (because IMO it will require litigation to persuade HMRC of the BG opinion). You will therefore likely need to pay the Loan Charge first. Which is a problem because even if BG win, you won't get that money back (stated on HMRC site somewhere) .... so the big questions is, and you should ask them this ... how do they plan on avoiding the loan charge? (Judical Review maybe, I don't know) You definitely need to know what the Loan Charge will cost you before making any decision.

[dammit chloe]

I believe BG publicly estimate their chance of success at 65% (it was posted on here somewhere) and in my opinion that success, if it does happen, is not going to happen before the loan charge hits (because IMO it will require litigation to persuade HMRC of the BG opinion). You will therefore likely need to pay the Loan Charge first. Which is a problem because even if BG win, you won't get that money back (stated on HMRC site somewhere) .... so the big questions is, and you should ask them this ... how do they plan on avoiding the loan charge? (Judical Review maybe, I don't know) You definitely need to know what the Loan Charge will cost you before making any decision.

They suggest they have ways to mitigate that but I am not signed up so I don't know what is planned. Still considering signing up though if only to have options that would be better than just bending over.

[bhand5]

They suggest they have ways to mitigate that but I am not signed up so I don't know what is planned. Still considering signing up though if only to have options that would be better than just bending over.

Can webberg confirm if Big group has a way to mitigateing the loan charge while waiting for their day in court??

[headspin]

Can webberg confirm if Big group has a way to mitigateing the loan charge while waiting for their day in court??

If there is a legal challenge the normal course of action is to ask that any payment requests are suspended until the challenge ends

[TooBlue]

pm rights please

Hi Admin,
Please can I have access to PM. I have tried to contact Phil outside of this forum but no reply, thought maybe a PM from in here might work. Thanks.

[MyxALot]

Can webberg confirm if Big group has a way to mitigateing the loan charge while waiting for their day in court??

Probably best asking that on the BG forums, or contacting WTT directly.

[webberg]

Big Group calling.

Yes, we think that our resolution plan is around 65% in terms of "winning".

Yes, the loan charge will bite before we get to Tribunal (if we have to go that far)

Yes, we have reason to believe that the loan charge can be resisted.

No, this is not based on a JR - although we are contemplating a JR on a related but separate issue.

So, an additional risk to our resolution is whether the loan charge becomes payable or not and what possible cost there might be if the charge arises when we say it does not.

[starstruck]

Can webberg confirm if Big group has a way to mitigateing the loan charge while waiting for their day in court??

I don't believe BG have any silver bullets. They could possibly have/come up with an argument as to why you don't need to declare your loans for the LC, but that will likely carry a severe penalty if HMRC later decide that that analysis is not correct.

You can relieve some of the LC tax pain by getting get tax relief in 2018/19, e.g. by investing in various different things, such as Pensions, EIS etc. But they carry their own risks/considerations. They are obviously available to all, whether in BG or not.

I don't think there is any easy way around the LC unfortunately; BG or no BG. Believe me I wish there was!

[regron]

I don't believe BG have any silver bullets. They could possibly have/come up with an argument as to why you don't need to declare your loans for the LC, but that will likely carry a severe penalty if HMRC later decide that that analysis is not correct.

You can relieve some of the LC tax pain by getting get tax relief in 2018/19, e.g. by investing in various different things, such as Pensions, EIS etc. But they carry their own risks/considerations. They are obviously available to all, whether in BG or not.

I don't think there is any easy way around the LC unfortunately; BG or no BG. Believe me I wish there was!

BG strategy is not about having an argument to not to declare the loans, BG is and always has been around resolution of the underlying tax disputes.

Whilst at present there is no way around the LC, there are ways to fight it / delay it, but unless you have the knowledge and deep pockets to carry this out on your own, you will need to be part of a fighting group. Be that either with your promoter (if still around and fighting on) BG, or LCAG who's sole aim is to attack the LC head on.
So it is all down to personal circumstances, weighing them up and deciding if you want to be part of the fight or not, then make your choice.

[starstruck]

BG strategy is not about having an argument to not to declare the loans, BG is and always has been around resolution of the underlying tax disputes.

Whilst at present there is no way around the LC, there are ways to fight it / delay it, but unless you have the knowledge and deep pockets to carry this out on your own, you will need to be part of a fighting group. Be that either with your promoter (if still around and fighting on) BG, or LCAG who's sole aim is to attack the LC head on.
So it is all down to personal circumstances, weighing them up and deciding if you want to be part of the fight or not, then make your choice.

IMO I think it would be niave of anyone to think that HMRC will agree to the BG analysis without putting up a fight; so realistically BG is a litigation group. That litigation is going to take longer than the LC to happen and I repeat my previous belief that nobody has yet found a way around the loan charge. LCAG are doing a great job, all hats off to them, my non-contracting friends are now aware of the LC from the BBC etc.. all as a result of the LCAG, maybe enough pressure will force change, I've done what I can, written to MP etc. I also hear there are a few JRs in the pipeline too, lets hope they ultimately win. But in terms of BG members getting around the LC, so they can get their well deserved day in court, well there is a very big question mark over that and the sting in the LC tail is even if you have the funds to survive the LC, you won't ever see that money again, even if BG ultimately win.

Let's hope something changes between now and April.