Non-AML Schemes and the 2019 Loan Charge

[RickG]

I appreciate your response and I think you are right that hmrc will have to be settled with one way or another. Also, arguing the trust does not exist serves no other real purpose.

I do, however, feel quite annoyed at the trustees and that they seem to be taking advantage of the desire of most people to settle everything and have the loan written off. I'm trying to ascertain how much exposure I have leaving the loan in place, and / or what pressure I can apply on them to reduce their fees. Any thoughts?

[Iliketax]

I do, however, feel quite annoyed at the trustees and that they seem to be taking advantage of the desire of most people to settle everything and have the loan written off. I'm trying to ascertain how much exposure I have leaving the loan in place, and / or what pressure I can apply on them to reduce their fees. Any thoughts?

Loan written off? What does the trust deed / plan rules say? Can the trustee actually write it off before retirement? Typically, this is leaving service aged 50+. As you've left your company, if you are over 50 (or whatever the rules say) then why not follow the retirement part of the plan and say you've retired and ask them to transfer the loan receivable to you as your pension? It won't affect the April 2019 loan charge but it will mean that the trust can just end and fees will stop.

If you are under 50 (or whatever the rules say), there's probably no way to stop the trust. But you might be able to change the trustee to a dormant company you set up and own. Then there would be no fees (but you'd have a little bit of hassle filing in forms each year for a dormant company). How you do this (and if you can) will be in the trust deed.

Whatever you decide to do, make sure it is only after you've taken professional advice based on your own circumstances.

[DontSettle]

If your legal adviser goes down the "there was no trust" route then you also need to understand what the implications for the tax returns that you / the company has previously done (PAYE/NIC due on the payments to you?). Presumably, it was supposed to be offshore EFRBS (so the payments would have been made to / from an offshore person) and so that brings you in the "requirement to correct" regime.

blatant scaremongering and nudging with the settlement deadline approaching.

clearly HMRC are getting desperate.

[Iliketax]

clearly HMRC are getting desperate.

Why do you say that?

[cojak]

I would like to know why as well...