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Contractor loans, just got email, previously unaware

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    Contractor loans, just got email, previously unaware

    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.

    #2
    Originally posted by talltales View Post
    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.
    It is pretty late but IIWY I would contact Phil Manley at DSW. It's worth paying for a tax advisor IMO and Phil is 100% on our side and fighting for us.

    Comment


      #3
      HMRC believe that the majority of contractor arrangements are tax avoidance "that has never worked".

      They have encouraged/bullied many people into settlement application based on taxing the loans as income adding interest and sometimes IHT.

      They have made some very minor concessions to those who settle by offering not very generous time to pay terms.

      If you do not wish to settle on such terms, your choice is to litigate via the scheme promoter (a few are doing this) or to find a group/firm who have a plan to resolve things a different way. (I confess an interest as we advise Big Group - see separate thread).

      The choice is yours.

      Almost certainly you should register for settlement before 30th September.

      If you don't like the answer, then you need to think about how you are going to resolve it,.
      Best Forum Adviser & Forum Personality of the Year 2018.

      (No, me neither).

      Comment


        #4
        Originally posted by webberg View Post
        Almost certainly you should register for settlement before 30th September.

        .
        This means basically just keeping your options open. You do not have to settle anything until you sign a deed to say you will

        Comment


          #5
          Originally posted by talltales View Post
          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.
          Also do a search for LCAG ( Loan Charge Info Group ) who are organising to support those affected fight the charge itself. See lobbying day thread as well.

          Comment


            #6
            Originally posted by dammit chloe View Post
            Also do a search for LCAG ( Loan Charge Info Group ) who are organising to support those affected fight the charge itself. See lobbying day thread as well.
            Be clear.

            LCAG are fighting the loan charge which is HMRC's attempt to retrospectively charge to tax in 2018/19 all loans received via a tax avoidance scheme from 1999 onwards.

            This is not the same as dealing with HMRC's position that the loans are income of the year in which they were made. Enquiries on that will continue regardless of whether LCAG is successful or not.
            Best Forum Adviser & Forum Personality of the Year 2018.

            (No, me neither).

            Comment


              #7
              Originally posted by headspin View Post
              It is pretty late but IIWY I would contact Phil Manley at DSW. It's worth paying for a tax advisor IMO and Phil is 100% on our side and fighting for us.
              I can't find a way to message Phil. Do I need special permissions before I can message anyone?

              Comment


                #8
                Contractors Loan Settlement - A tax avoidance scheme that Osbourne scrapped

                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.

                Comment


                  #9
                  Originally posted by talltales View Post
                  I can't find a way to message Phil. Do I need special permissions before I can message anyone?
                  Ask for message permission.
                  Or google phil DSW and ring.
                  Join LCAG, but this will take a few days so need to get a move on before that.

                  Comment


                    #10
                    Originally posted by me206et View Post
                    Ask for message permission.
                    Or google phil DSW and ring.
                    Join LCAG, but this will take a few days so need to get a move on before that.
                    phil at dswtres dot com

                    Comment

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