AM Limited COP8 HMRC Investigation Letter..

[jbryce]

Most wealthy people who use tax planning only risk a portion of their net worth in a scheme.

The problem with the contractor schemes is that people put ALL of their income into them, year in and year out. If it fails then for many that will spell disaster.

Exactly. If you're still in a scheme, you really shouldn't be. It's just not worth the risk. Read through everything under the HMRC Scheme Enquiries threads. Is it really worth the hassle?

Play safe - go with an umbrella or, for a risk that you manage, go down the Ltd company route.

[jbryce]

Hmmm

NO! 2011.
Oh that's cr@p.
So all the EBT users will receive the 'AML is no longer trading' reply?

GET OUT. RUN RUN RUN RUN!

[ads1980]

I also eventually had the bog standard AML email correspondance advising they will challenge the ruling. At least I got a reply in the end.

I stopped using them in 2010!

[jrock]

Interested to know what others think of AMLs chances of victory if they do take this to court disputing the proposed new laws.

As AML are still trading and other schemes have stopped this surely signifies AMLs intent to continue.

[jbryce]

Interested to know what others think of AMLs chances of victory if they do take this to court disputing the proposed new laws.

As AML are still trading and other schemes have stopped this surely signifies AMLs intent to continue.

AML are pretty large - a couple of contractors here have been with them for years and they are being supported in their EBT worries.
I think they are pretty big in the North Sea sector as well; so it's possible that they feel they have a brand/business to protect.

Chances of victory for an EBT? Who knows, depends on how it was structured. Whatever, the new proposals mean you will have to pay now and wait for HMRC/AML to sort it out and I suspect that will be a long, long, long time.

[jrock]

AML are pretty large - a couple of contractors here have been with them for years and they are being supported in their EBT worries.
I think they are pretty big in the North Sea sector as well; so it's possible that they feel they have a brand/business to protect.

Chances of victory for an EBT? Who knows, depends on how it was structured. Whatever, the new proposals mean you will have to pay now and wait for HMRC/AML to sort it out and I suspect that will be a long, long, long time.

Problem is how can the individual pay now if they don't have it

[AtW]

Problem is how can the individual pay now if they don't have it

For HMRC Plan A in such cases was to bankrupt that individual and hope everybody else will hear the message.

New HMRC Plan B is to make tax due prepaid whilst "scheme providers" challenge the ruling, this will hopefully drastically reduce number of schemers and thus reduce number of bankrupcies in a long run.

[jbryce]

Problem is how can the individual pay now if they don't have it

For existing DAs you negotiate a Time To Pay arrangement or you go Bankrupt.

[retrodeath]

I'm in a position where I could probably pay back the money over a 5 year period - 6 with surcharges and interest. This relies heavily upon maintaining current earnings and being able to stay outside IR35, which is looking less likely by the day.

As each day passes I fear bankruptcy less. I'd have to write mortgage chances and working in the finance sector off and probably accept I'll earn less for the rest of my career but beyond being able to convince someone to lend me 100s of thousands to give to Hector (why do you owe so much tax?) it doesn't seem to make a great deal of sense staying afloat.

The only slim hope I see is that somewhere along the parliament route the bill is objected to by the people who are there to protect us.

[LisaContractorUmbrella]

Interested to know what others think of AMLs chances of victory if they do take this to court disputing the proposed new laws.

As AML are still trading and other schemes have stopped this surely signifies AMLs intent to continue.

The problem is - the longer a contractor stays with AML, the higher their debt will be if AML lose. A legal challenge to the new legislation itself could take months, even years.