Contractor loans, just got email, previously unaware

[passerby]

I've been out of contracting for over a decade and had heard nothing of HMRC chasing contractor loan schemes.

Following a Moneybox article which I only caught a little of, I was starting to look into this, then yesterday I got an email from "Contractor Loans" stating that they had my details from Fidei and there is a deadline on the 30th.

Clearly I need to take urgent action, but apparently there was an earlier deadline to register that I have missed.

I guess I need to action to at least contract HMRC before the next deadline.

Any advice appreciated at this point.

Who sent you the email? is it a promoter, an accountant? how did they get your details?

[GreenMirror]

Fedei is an AJ company. So be very careful. Phil or Graham are far better ways forward.

[talltales]

Who sent you the email? is it a promoter, an accountant? how did they get your details?

At the moment it's just a hotmail address and a name "Contractor Loans Assist" that may be associated with it. I'm very wary of it.

[GreenMirror]

At the moment it's just a hotmail address and a name "Contractor Loans Assist" that may be associated with it. I'm very wary of it.

Sounds like AJ up to his tricks again.

[TonyT]

I've been out of contracting for over a decade and had heard nothing of HMRC chasing contractor loan schemes.

Following a Moneybox article which I only caught a little of, I was starting to look into this, then yesterday I got an email from "Contractor Loans" stating that they had my details from Fidei and there is a deadline on the 30th.

Clearly I need to take urgent action, but apparently there was an earlier deadline to register that I have missed.

I guess I need to action to at least contract HMRC before the next deadline.

Any advice appreciated at this point.

Please do contact Phil Manley and join the Loan Charge Action Group.
We are all going to lobby outside parliament on the 24th October in protest of the Loan Charge.

[piebaps]

At the moment it's just a hotmail address and a name "Contractor Loans Assist" that may be associated with it. I'm very wary of it.

If it was a reputable company you'd be able to find them and identify who is operating it.

Google search = no trace
UK company house search = no trace

I'd be out at this stage were it me.

[kryten22uk]

Sounds like AJ up to his tricks again.

There's no 'tricks' going on, well not totally. These guys are managing the Trust loan info, and any contractor with Fidei loans will need to get their details from them. They're a bit slow, took a few weeks for them to 'process' my request, but they came through in the end.

They do try to sell their own services, but not pushy, only in a brief part of their email, and alongside they also recommend WTT and give WTT's prices and contact details. I agree that I wouldnt pay for a tax service from a company with zero online/official presence, but the main purpose of the email was to advise that they are the people who maintain the details of Fidei Loans, should you need updating. So you can (as I did) completely ignore the tax advisory side, and just get them to send your statement.

[GoneSurfing]

After April 2019 a loan charge will be applicable. The charge shall start from 47.5% of the total loan for lower rate tax payer and upward.

How do you arrive at that figure given that it is treated as income and subject to the standard tax brackets?

[webberg]

If it was a reputable company you'd be able to find them and identify who is operating it.

Google search = no trace
UK company house search = no trace

I'd be out at this stage were it me.

If you can't do any DD on them, don't use them.

[Albert49]

Hi,
Yes, I am dealing with a couple of cases at this moment. First, you need to find out whether sec 9A inquiry is instigated. You need to be careful about what information you are giving out. Contractor Loans Settlement Pack needs to be filled. 30th September is last date for sending the working with intent to declare. After April 2019 a loan charge will be applicable. The charge shall start from 47.5% of the total loan for lower rate tax payer and upward. HMRC shall call for information since 1999 in order to determine the loan charge unless you declare. Loan from EBT is an Avoidance scheme that HMRC is not confirmation with. But you need to what and where to declare.

Can I ask where the 47.5% comes from, my understanding is that loan amounts are added to your other income in 18/19, and you are taxed accordingly, so theoretically if your other income in 18/19 is low and your loans totals are also low the tax could be 20%, in most cases it will be 40% or 45%,.