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Loan Assignment Association against FS Capital

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  • webberg
    replied
    I'll repeat again, as clearly the poster above remains a little confused.

    The issue that needs to be resolved here is not the loan charge but the liability on the payments of money made, in the year of payment.

    An example.

    You had money in say 2013/14 which if taxed as income that year would have produced a liability of say £20,000.

    HMRC say that the loan charge in 2018/19 (or that year plus the next two if you spread it and why would you do that?) amounts to tax paid of say £15,000.

    When the merry go round stops, the final liability is agreed (perhaps reluctantly) at £20,000 but now has £3,000 of interest added.

    You owe HMRC £23,000 and have paid £15,000. You still owe £8,000.

    By all means attack the loan charge and have it limited or restricted. There are reasons enough to do this, but thinking that to do so will reduce your eventual liability, is not one of them.

    Leave a comment:


  • votfosq
    replied
    Originally posted by webberg View Post
    I cannot give you personal advice here.

    I don't know you or your circumstances and don't have enough to go on.

    Further, giving personal advice in public is not allowed by the CIOT.

    Further, doing so would breach the rules of this forum.

    You need to read the various thoughts here and make a judgement. you could and should then call the various parties offering different things and get more information.

    Once you have done that, you can decide what is best for you.
    Thanks for responding webberg - I should have framed my initial post differently. I understand you cannot provide advice through this forum.

    I've read nearly every post relating to the loan charge and the similar circumstances of those caught up in this mess.
    Ultimately we all want this over with and move on with our lives. Living through this uncertainty is not easy at all and am very grateful for these forums and the opinions of those with more experience in this than I.

    Leave a comment:


  • webberg
    replied
    Originally posted by votfosq View Post

    Peak Performance have been communicating information about dealing with FS Capital and has set up the Loan Assignment Association, which I'm strongly advising to sign up to, similar to WTT.


    Thanks
    Additionally, I don't know what a "Loan Assignment Association" is.

    The UK does not have the sort of "class action" beloved of US soaps and therefore an "association" is presumably a means to group fund a test or lead case?

    If so, you might want to check out the terms of joining/contributing and whether you are obliged - legally - to pay money into the fund (and who controls it, transparency of expenditures, tendering processes, etc) and whether you are "bound" by any court action that they take and win/lose or any negotiated position they arrive at.

    In other words, look before you leap.

    Leave a comment:


  • webberg
    replied
    Originally posted by votfosq View Post
    Hello Webberg

    I'm here for advice regarding my association with k2/Hyrax.
    I cannot give you personal advice here.

    I don't know you or your circumstances and don't have enough to go on.

    Further, giving personal advice in public is not allowed by the CIOT.

    Further, doing so would breach the rules of this forum.

    You need to read the various thoughts here and make a judgement. you could and should then call the various parties offering different things and get more information.

    Once you have done that, you can decide what is best for you.

    Leave a comment:


  • votfosq
    replied
    Originally posted by webberg View Post
    Please see above.

    From our (WTT) perspective, we're looking to balance cost, "success" and time.

    Taking legal action is certainly on the agenda, but we are also very well aware that some of this may have to be against parties who are not within the UK, making any such action potentially tricky and expensive. Not impossible, but not something to rush into without an appreciation of the consequences.

    I have no idea what strategy the other parties have nor whether they are stand alone, i.e. do not include the prospect of further tax liabilities, or integrated with some tax actions (such as perhaps settlement). You have to speak with them all and make a judgement.
    Hello Webberg

    I'm here for advice regarding my association with k2/Hyrax.
    My previous accountancy firm convinced me to use their facility so am liable for the years 2011/2012.

    After being advised to bury my head in the sand hoping it would all go away I'm currently in the process of getting my outstanding tax finalised with the HMRC in relation to the loan charge but have now been informed FS Capital are sniffing around for repayment of loans.
    Now I've not had any correspondence from FS Capital - no letters demanding payments, etc however did have a brief interchange with Pinotage in early 2019 asking me to itemise my loans as they were taking charge of the debt...thats subsequently been passed to FS Capital.

    Peak Performance have been communicating information about dealing with FS Capital and has set up the Loan Assignment Association, which I'm strongly advising to sign up to, similar to WTT.

    I've been reading these forums for advice and direction in dealing with potential dealings with this outfit FS Capital but am wondering if I need to join one of these associations if I've not received any comms from debt collectors?
    I know I'm in the same boat as a load of folks here though before joining WTT or LAA I'd like your thoughts on the matter.
    Just deal with HMRC or preempt the possibility of getting demands from FSC, etc and sign up?

    Its all very worrying but appreciate all the information and advice you've posted thus far.

    Thanks

    Leave a comment:


  • piebaps
    replied
    Lisa

    The best summary is here https://www.contractoruk.com/forums/...-nutshell.html

    Leave a comment:


  • lisap
    replied
    I have too...

    Did you get any responses? Im in the same boat, and just dont know where to turn
    LisaP


    Originally posted by RH21 View Post
    Hello, I stumbled across this forum which has been a godsend in giving me more information and providing some comfort that i'm not on my own.

    I too was heavily encouraged to sign up by my accountant and joined the Cirus / Hyrax schemes without fully understanding the potential implications, which are becoming horribly clear now FS Capital have taken assignment of my loans.

    Thankfully I was only in it for just over a year, but was still paid an amount of loans that to attempt to repay now would have a massive financial impact, wiping out family savings and then some. On top of the years of uncertainty regarding HMRC action this is taking a serious toll on my mental health - to have agreed a settlement figure and negotiated a payment plan, to then have it snatched away at the 11th hour just as I was in the process of getting the loans written off is a cruel twist that I have to say has hit me hard.

    However, all I can do is dig deep and resolve to prepare as best I can, get the best advice possible and hope that there's enough of us to take these opportunist shysters head on. A few quick questions that keep running through my head though:

    1. Worst case scenario, if I had to pay off the loans in full, does this make the HMRC settlement disappear i.e. it was a loan and not income, so can't pay it off and pay tax on it? On the basis that any litigation could take years (at least until after the settlement is due/loan charge deadline), could there be a scenario where tax is paid to HMRC first and the loan won’t be written off, and is ultimately due creating a potential liability on both fronts?

    2. The company (Peak Performance) linked to my Accountants is forming a Loan Assignment Association with various lawyers to challenge FS Capital - this is undoubtedly a good idea as per the other ones mentioned elsewhere on here (WTT & ETC). If they're all potentially taking action against the same company - FS Capital - wouldn't it make sense to join forces (they've indicated they expect to get well over the 200+ members to proceed). Also, how clear are the relative merits of choosing one over the other?

    Lots more questions, but joining forces with a wider group is the top of my list at the moment. Any info or guidance hugely appreciated and aware a number of these points have been raised on similar threads, so please feel free to merge.

    Thanks in advance.

    Leave a comment:


  • DealorNoDeal
    replied
    Originally posted by Delendog View Post
    Suggest you look here, this may give you what you need at zero cost:-

    Letter from Gladstone's Solicitors regarding Felicitas and contractor loans - ETC Tax
    I take my hat off to them for offering this FOC. They are clearly as outraged as the rest of us at the despicable actions of Felicitas et al.

    It also sounds like they're planning the next steps if Felicitas/Gladstones don't desist.

    Leave a comment:


  • Delendog
    replied
    Originally posted by RH21 View Post
    Thank you - i'll be in touch to discuss. What's the best route to get to speak to yourself - just an initial enquiry via the form on the WTT website?
    Suggest you look here, this may give you what you need at zero cost:-

    Letter from Gladstone's Solicitors regarding Felicitas and contractor loans - ETC Tax

    Leave a comment:


  • webberg
    replied
    Originally posted by RH21 View Post
    Thank you - i'll be in touch to discuss. What's the best route to get to speak to yourself - just an initial enquiry via the form on the WTT website?
    Easiest to call us and make an appointment to speak. First conversation is free.

    Leave a comment:

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