IQ Consultants, Felicitas Solutions, ECS Trustees - loan repayment demands

[m786]

Contact HMR

Hi All,
Just contacted HMRC and described the situation. Person on the phone was really helpful and did mention that HMRC has believed it as an income so it can not be loan at the same time.
He has confirmed that they had few calls and has reported this to his senior for way forward.
Please contact HMRc as more people do is better so it can force HMRC to make the statement on this.

[mrprofit]

Guys please file a complain to SRA and Legal Ombudsman about Gladstone Solicitors for malpractice, I believe time given to respond to a letter was not adequate and doesn't comply with the rules.

[jbryce]

Hi All,
Just contacted HMRC and described the situation. Person on the phone was really helpful and did mention that HMRC has believed it as an income so it can not be loan at the same time.
He has confirmed that they had few calls and has reported this to his senior for way forward.
Please contact HMRc as more people do is better so it can force HMRC to make the statement on this.

.. I think it can probably be both at the same time. Whatever, do not engage and do not pay them.

[Wazza1882]

.. I think it can probably be both at the same time...

I understand that view point due to the way the laws are written, but how can that be fair?

HMRC on one hand are saying no, they're not loans at all, they're disguised as income. Tax!
Then on the other hand it will be classed as a loan so needs to be repaid.

So do people just pick what suits them, collect the money and then leave the average worker to suffer? No protection whatsoever? It really feels like we have no one on our side at all. Who knows, maybe we do, but I just can't see it.

[typicalmedia]

I also received this letter from Gladstones Solicitors yesterday, can see from this thread that their are many of us.

Through sheer panic of a potential CCJ I decided to pay the requested amount, trying to get a new mortgage at the moment so a CCJ would certainly not help my cause at this time.

I'm guessing from the comments that paying them was the wrong thing to do but it becomes a bit of a catch 22.

It just doesn't seem right that you work hard and then near 80% of the income earned (in my case) is then liable to be paid back in the form of a loan repayment, what was the point of working! Plus HMRC what to tax you on the loan your are expected to pay back.

It just amazes me that there are still companies actively advertising on Google stating that you can keep 90% of your income

[MattWills78]

I love your confidence and correct views, but my emotions are getting the better of me currently. I only received the letter last night, had 3 hours sleep. Might feel better after the weekend.

I felt the same on the day of receipt but the following day I sought good advice and now feel fairly confident that these guys are chancing their arm / on a fishing trip and will seriously struggle to enforce the course of action they are proposing.

I spoke again to the Managing Partner of Freeths London today - apparently a number of people have now contacted them about this issue and they are prepared to represent as a group action if it comes to it. I use them through work and only have good things to say about them - they are big hitters and have a wealth of expertise around this area so I for one will be using their services if it comes to it. You guys are obviously welcome to join in - the bigger the group the more weight we have + the further the costs will be shared.

Additionally, we have a team of forensic accountants auditing our 2019 books at work this week - I had a good conversation with the head of the team there today and he’s happy to look over everything for me in the next few days as a favour. On the face of it his advice was the same as I posted in previous comments....

I know it’s not easy when you receive a letter using such aggressive tactics but I wouldn’t lose too much more sleep over this!

Best,

Matt

[lowpaidworker]

- is this is becoming an advertising thread. Its certainly becoming more complicated than Smileys People... who to trust ??

[neveragain]

What to do??

So to clarify, if you have paid your taxes on this ‘loan’, this is no longer a tax/HMRC/loan charge matter.
This is now in the realm of contract law governed by English law not isle of man law.

The so called ‘loan’ technically should not now exist as it is been classed as income by HMRC. As we know the loan was our wage, named appropriately to get by the tax when we signed up to it.

The letter we received was delivered a week after the date on the letter so gives under a week for their demand to pay.
Should have been delivered by prepaid registered post. Not valid otherwise it seems.

We have no guarantee that if we pay up, they or any other IOM / UK company will come back for more.

If they are asking for more than their 15% cut, ie this extra charge in the letter, from our loan/wage as originally agreed, this would mean 'loss of earnings', which can be taken to court?

So I'm assuming the next course of action is to check what you signed back in the day.
Dispute to Gladstone and report them/the matter to, SRA, FSA, law society etc. for Gladstone not taking due diligence into the clients they take one for debt collection?

I think they're counting on the lack of legal expertise to challenge them as very few people if any can afford to pay someone to challenge them who has enough knowledge in tax avoidance schemes to throw all the legal terms at them.
As most if not all of us, are unable to do this they reckon we'll pay as it has now gone to a legitimate solicitors (however inept) to claim the debt or part of it.

Initial talk to a Solicitor stated to me, the loan agreement is an unlawful scheme of tax evasion ie paying the higher amount tax, but then to say to waive the loan amount and to ask for repayment of interest makes no sense.
The Court will not uphold unlawful schemes. That is the only argument we can push them on.

If anyone has their paperwork to hand, there are two sections. Contract of Employment and Loan Agreement
Loan Agreement part states that this Agreement shall be governed and constructed in all respects in accordance with the laws of the Isle of Man. The parties hereto submit to the exclusive jurisdiction of the Isle of Man Courts. -----> But we did not work in IOM.. We are governed by English law.

Rant over..

[MattWills78]

- is this is becoming an advertising thread. Its certainly becoming more complicated than Smileys People... who to trust ??

Lol. Just to state I’m not on commission. Defo recommend you all get legal advice. My agenda is to fight these companies and make sure they don’t profit from their dubious actions and that their reputation is rightly damaged as a result of their actions.

What I can tell you is that I do have are a very particular set of skills, skills I have acquired over a very long career. Skills that make me a nightmare for people like these people

[Scrogbank]

I felt the same on the day of receipt but the following day I sought good advice and now feel fairly confident that these guys are chancing their arm / on a fishing trip and will seriously struggle to enforce the course of action they are proposing.

I spoke again to the Managing Partner of Freeths London today - apparently a number of people have now contacted them about this issue and they are prepared to represent as a group action if it comes to it. I use them through work and only have good things to say about them - they are big hitters and have a wealth of expertise around this area so I for one will be using their services if it comes to it. You guys are obviously welcome to join in - the bigger the group the more weight we have + the further the costs will be shared.

Additionally, we have a team of forensic accountants auditing our 2019 books at work this week - I had a good conversation with the head of the team there today and he’s happy to look over everything for me in the next few days as a favour. On the face of it his advice was the same as I posted in previous comments....

I know it’s not easy when you receive a letter using such aggressive tactics but I wouldn’t lose too much more sleep over this!

Best,

Matt

Matt
Many thanks for your very helpful posts over the last couple of days. I have replied to them going into dispute and await their response. Are you able to share the contact name and details for Freeths should we need to join a joint action?