EBT HELL: Assignment Solutions Isle Of Man / Premier Tax Strategies / DMS

[difficulttimes]

Sorry being a little thick but what are the benefits of having the loan written off?

[flamel]

Sorry being a little thick but what are the benefits of having the loan written off?

You will pay tax on the loan amount, plus interest plus whatever else HMRC feel like charging you until you're destitute.

You won't be asked to pay the loan off as well out of your "Big Issue" earnings.

[bandemelbs]

Being based outside of the U.K. now for 8-years, I fax all my letters to HMRC before posting them via registered mail, as it takes 3-weeks to get there.

I've attempted to fax my latest response to the fax number on their last letter (+44 161 2886 079) to no avail. Tried numerous times but simply won't work so have faxed it to the number I've used previously (+44 3000 526 486).

Anyone else had the same issue? Just trying to find a fax that can send overseas is enough of a challenge without these fools having a number that doesn't work !

[webberg]

As my name has been mentioned, I'll comment.

The world according to HMRC for many schemes works as.

Employer pays you 100 and this is (or should be) taxable income, regardless of legal label.

You choose to take 10, leaving the employer to put 90 into a trust for your benefit.

(More likely 75 in fact after fees and charges).

The trust advances 90 to you under a loan agreement. That loan is an asset of the trust.

At some undefined point in the future, the loan is repaid. Assuming that coincides with the trust coming to an end, or that the trustee decides to distribute the assets (cash) to the beneficiary, the money flows back to you.

In most instances, income earned by the trust during it's life is taxable on the trust and is the responsibility of the trustee. (Not always).

In most instances, assets distributed from a trust will also attract a tax charge. If that trust is an EBT, then post 2010, when the assets are "earmarked" as belonging to you, a charge arises.

Trusts that are not EBTs but which distribute assets may incur an exit charge (IHT) on their beneficiaries.

SO, writing a loan off, i.e. the trust admitting that it's assets are worthless, may trigger either an "earmarking" of the income to the borrower and/or an exit charge.

The issue is that the trust deeds are notoriously difficult to extract from trustees/providers and determining the exact nature of any charge is difficult.

Personally, I would be asking the trustee for their opinion as to the tax consequences as part of the fee.

I would then be taking that to HMRC, who are equally unclear as to the tax consequences, and ask them to agree a treatment.

Writing the loan off without being aware of the potential consequences (legal, tax) is not recommended.

In some instances, I know that HMRC has agreed that a loan will be "treated" as having been written off in reaching a tax settlement. OK, that allows some form of certainty in the settlement, but what happens if the trustee then asks for the loan to be repaid?

Agreeing that the loan is worthless for the purposes of tax is entirely different and separate from having the loan legally written off/forgiven.

[bandemelbs]

Being based outside of the U.K. now for 8-years, I fax all my letters to HMRC before posting them via registered mail, as it takes 3-weeks to get there.

I've attempted to fax my latest response to the fax number on their last letter (+44 161 2886 079) to no avail. Tried numerous times but simply won't work so have faxed it to the number I've used previously (+44 3000 526 486).

Anyone else had the same issue? Just trying to find a fax that can send overseas is enough of a challenge without these fools having a number that doesn't work !

Anyone???

[regron]

Anyone???

This fax number was quoted in another forum, no idea if it is still active though.

03000522014

[Brazil2016]

oh dear. late again

I was part of ASIOM briefly in 2006 year with a very friendly CP08 letter to prove it. I've been out of UK since 2009, and dropped off HMRC address details sometime in 2013. Good timing....not. Desperately trying to get up to speed with all the developments, join WTT and an advisor to contact HMRC and find out how bad things are with what I assume is notices not received. I've seen the big recommends for WTT/The Big Group which I'm joining (if still open). I'm not sure if they act as Tax affairs advisors/representatives as well - are there any other recommendations for professional who can sort out my immediate need to reestablish contact and deal with what I assume are very overdue issues? Thanks

[neil99]

I was part of ASIOM briefly in 2006 year with a very friendly CP08 letter to prove it. I've been out of UK since 2009, and dropped off HMRC address details sometime in 2013. Good timing....not. Desperately trying to get up to speed with all the developments, join WTT and an advisor to contact HMRC and find out how bad things are with what I assume is notices not received. I've seen the big recommends for WTT/The Big Group which I'm joining (if still open). I'm not sure if they act as Tax affairs advisors/representatives as well - are there any other recommendations for professional who can sort out my immediate need to reestablish contact and deal with what I assume are very overdue issues? Thanks

Heh Brazil, don't panic! If you were in ASIOM briefly then mr tax man probably won't want very much from you. They may have completely forgotten you. I assume you've not had an APN letter?

The best thing is to join Big Group. They can offer any tax advice services you need. You can talk through your situation with them. And there's a busy and very supportive forum.

I personally haven't joined the ASIOM litigation association run via Saleos consulting. It's a waste of time and money in my opinion.

If you do join Big Group, probably the thing you want to do is listen to the webinar. There will be another all-hands coming up shortly.

[Brazil2016]

Heh Brazil, don't panic! If you were in ASIOM briefly then mr tax man probably won't want very much from you. They may have completely forgotten you. I assume you've not had an APN letter?

The best thing is to join Big Group. They can offer any tax advice services you need. You can talk through your situation with them. And there's a busy and very supportive forum.

I personally haven't joined the ASIOM litigation association run via Saleos consulting. It's a waste of time and money in my opinion.

If you do join Big Group, probably the thing you want to do is listen to the webinar. There will be another all-hands coming up shortly.

Thanks neil99, yes application for Big Group in process.

[ozibattler31]

Bandemelbs

Anyone???

Hi Bandmelbs

I find 0011 instead of + works.

I keep a copy of proof of fax as well as registered mail