Newbie. Just found out about the Loan charge. Help

[WTFH]

Simply?
They are a bit of an odd bunch. The guy who owns them also owns a company called GiftUK (based in Oxfordshire)
Simply have an address in Glasgow, but it's just a business forwarding address - they don't actually have any office space there. (https://www.bluesquareoffices.com/ab...quare-offices/ )
Simply's phone number is an Edinburgh one, not Glasgow.

None of that is illegal, but it just makes you wonder.

[Delendog]

Ok. So I emailed my Umbrella company saying I wanted them to recalculate my wages for the past 8 months as per PAYE - I'd then contact HMRC and settle.

This is their response - but in summary - they are saying this is a genuine loan and does not fall under these remuneration plans. Tell me what you think.

"I have attached a copy of the contract of employment that you signed when you initially signed up with ourselves. This is what confirms us as your employer and we have to be your employer in order to deduct tax and NI contributions from your pay.

The loan you have received does not fall into the bracket of disguised remuneration as it is paid to you direct from your employer (i.e. us) not via any third party or disguised Trust.



You mention that you do not want to get into trouble, if we were to unravel your payments in the way you have mentioned we would have to re calculate all of your previous payments one by one and then re submit them to HMRC. This would actually be more likely to prompt questions from HMRC. HMRC are only looking at chasing up people who have avoided tax by using a tax avoidance scheme. Here at Simply you are not using a tax avoidance scheme at all."

Believe us we have heard all this before it will not work. Even if it did eventually HMRC will come and get you like they are now going back 20 years. The only way to accept something is legit to HMRC is a signed letter from HMRC confirming it is OK - they will not have this. I was in a scheme that still claims it is outside of the DR rules - HMRC now want £200K in tax.

[Raymondo]

Simply?
They are a bit of an odd bunch. The guy who owns them also owns a company called GiftUK (based in Oxfordshire)
Simply have an address in Glasgow, but it's just a business forwarding address - they don't actually have any office space there. (https://www.bluesquareoffices.com/ab...quare-offices/ )
Simply's phone number is an Edinburgh one, not Glasgow.

None of that is illegal, but it just makes you wonder.

Yes mate

It's simplypaid!

How did you know? They are convinced this is all above board - or they are willingly lying to me. How disheartening that people would do this to someone. I work so hard, saving for my family - like so many others. I am such an idiot for not learning all of this. But I paid these people so I didn't need to know.

[Raymondo]

You could send them this link which has a fairly clear message in the opening paragraph.







https://www.gov.uk/guidance/contract...-cost-you-more

I can't see how they believe a simple fudge to try and avoid being a 'scheme' is going to stand up to even the lightest scrutiny.

Thaanks mate - will post that link to the scoundrels. I will not fall for it. I actually said I will report them to HMRC - would that do anything?

I have also demanded they help pay the debt. Not heard anything back. God I am so annoyed.

[Raymondo]

Believe us we have heard all this before it will not work. Even if it did eventually HMRC will come and get you like they are now going back 20 years. The only way to accept something is legit to HMRC is a signed letter from HMRC confirming it is OK - they will not have this. I was in a scheme that still claims it is outside of the DR rules - HMRC now want £200K in tax.

Thanks for the reassurance - it is perversely tempting to actually believe them. As if I want to not believe this.

And mate - 200k debt. Wow. I am so sorry. I do not know what to say.

[northernladuk]

Thaanks mate - will post that link to the scoundrels. I will not fall for it. I actually said I will report them to HMRC - would that do anything?

I have also demanded they help pay the debt. Not heard anything back. God I am so annoyed.

I suppose it would get their back up and make a difficult situation more confrontational. I don't think it will actually help unless you've done it or make them believe you will.

[DeadDOTAS]

Hi

I am a locum Dietitian, working with an agency and Umbrella company. After a job and agency change in January 2018 a new Umbrella company was advised via my new agency.

I had been PAYE until this time, however the new Umbrella company advised me on this loan scheme which was said to be legal and was able to reduce tax due to some self-employment rules. In truth, I know nothing about the legal side of contracting so just went with it thinking this must all be above board.

Fast forward 8 months later and via an email sent out from an old employment agency I discovered the forthcoming HMRC Loan charge and that my scheme fell under it.

I contacted my umbrella company who said it was legal - this is what they said:

"HMRC legislation changes coming into effect in 2019 relates specifically to the same EBT’s, 3rd party lenders and other lending or annuity and pension type schemes that have already been challenged or are about to be challenged. None of the changes affect a genuine commercial loan from a single employer...…..please see attached a copy of the legislation that is coming into effect in April next year.....
I would draw your attention to Chapter 2, Section 7 which outlines why x as your employer is able to provide you with a genuine commercial loan which is exempt from this legislation".

They are being dishonest aren't they? Or have I misread this?

I suppose I wanted to know if this loan charge will apply to me and if so - what do I do to fix this. I have a young family and am scared I am going to harm us.

Your best chance is joining the Loan Charge Action Group:
https://www.hmrcloancharge.info/

They are collaborating closely with IHPA and have an increasing number of nurses, locum doctors and others from the NHS joining (which HMRC stringently denies they have exposure).

They have people who can assist both from a tax and mental health angle.

YOU ARE NOT ALONE.

They also have some other activities ongoing that I cannot divulge here in a public forum but that may be of great help. So, worth joining asap tbh rather than suffering in silence by yourself....

[cojak]

Read this thread

You probably haven’t got to the Umbrella sub-forum yet, but this is the reason why this kind of umbrella insist that they are legit:

Is your umbrella open to criminal prosecution?

[Groundhogdays]

Absolutely not mate. We are clueless. I spoke to 3 people today - locums - none had a clue. I found out on 2 days ago by pure chance.

Raymondo, it would help everyone and their families in the same boat, if you could spread word amongst your friends and colleagues similarly affected, and anyone sympathetic to your plight. The public petition to get rid of the retrospective element of this vindictive legislation is in need of about 7000 signatures to even get a response from government at 10,000 signatures. In order to be considered for debate in parliament it would take 100,000 signatures, but if a significant proportion of doctors, nurses, locums et al start signing up, then the obvious potential damage of ruining NHS workers at a time of Brexit uncertainty will be a powerful lever to help push back against this evil. The LCAG Loan Charge Action Group and others would take up your collective message and it could well sway those wavering MPs who haven't yet signed the Early Day Motion 1239 against Loan Charge retrospective tax. How about it?

[Raymondo]

Raymondo, it would help everyone and their families in the same boat, if you could spread word amongst your friends and colleagues similarly affected, and anyone sympathetic to your plight. The public petition to get rid of the retrospective element of this vindictive legislation is in need of about 7000 signatures to even get a response from government at 10,000 signatures. In order to be considered for debate in parliament it would take 100,000 signatures, but if a significant proportion of doctors, nurses, locums et al start signing up, then the obvious potential damage of ruining NHS workers at a time of Brexit uncertainty will be a powerful lever to help push back against this evil. The LCAG Loan Charge Action Group and others would take up your collective message and it could well sway those wavering MPs who haven't yet signed the Early Day Motion 1239 against Loan Charge retrospective tax. How about it?

I'm on it mate. Spoke to about 10 locums here at my hospital alone who I found out to be on similar schemes. I also spoke with my agency and warned them to warn all there locums involved with simply umbrella/simply paid to get out of any schemes. I also urged my agency to cease activity with them.