Edge EBT thread

[dammit chloe]

Having pondered (/panic’d!) this for the last 24 hours, i have the following questions:

1/ people are trying to unearth the trustee’s details. Is this in the hope of contacting them and them agreeing to disolve the loan?
2/ is this a viable strategy? As in is this cause for HMRC to drop persuit? Seems to good to be true?
3/ my period in question is > 7yrs ago. I thought anything greater than this magic number means they lost their chance to ask questions (cannot believe im being haunted by this now! Like many i was duped into believing this was perfectly legal consulting model!).
4/ has anyone else left the UK (like me). I left in 2013. Does this make any difference?

Im signing up on WTTbiggroup later today hopefully to get some answers but i figured the above are innocent enough to ask here.

Thanks in advance guys! The community here is all i have from losing it right now!

Perhaps slow down and read a few more postings to get a handle on this but in short. I was in this position about 3 weeks ago.

1. Maybe. Or just to find out the value of loans.
2. Loans can only be ignored if they are paid back in full and in cash with no loop around to get the money back.
3. Loan Charge goes back 20 years regardless of open or closed years. A new low in retrospective taxation and accepted certainty niceties but it's law.
4. Not really but it might take longer to find you. I both countries are signed up to debt recovery agreements then you can be chased by whichever country you are in.

Actually signing up to Big Group costs a fair bit but worth talking to WTT about your situation. Join up with Loan Charge Action Group who are fighting the legislation.

As I say take a bit of time to understand your situation and what the options are.

[Calmbeforethestorm]

Not sure about the overseas bit...if the loan charge is not retrospective as they say and its only on UK tax returns and the loans and you are overseas then how do they levy it on someone who no longer is taxed in the UK?

Seems they might try to tax you in the years you were in the UK but I dont see how it can apply if you're no longer here.

[edgeebt]

Can anyone explain how the loan charge actually works? Eg if my disputed loan amount is 5k, am I correct in assuming this will be treated as income for the 2019 tax year? If I had no other income for that year, there would be no additional tax due as the amount is below the tax free threshold. Therefore it's beneficial to refrain from settling.

Have I understood that correctly?

[webberg]

Can anyone explain how the loan charge actually works? Eg if my disputed loan amount is 5k, am I correct in assuming this will be treated as income for the 2019 tax year? If I had no other income for that year, there would be no additional tax due as the amount is below the tax free threshold. Therefore it's beneficial to refrain from settling.

Have I understood that correctly?

Add unpaid loans to your other income in 2018/19.

Calculate the total tax due on all income.

Deduct tax paid.

balance is the loan charge.

[mattatattat]

Thanks @Mattatattat, have you heard anything back from HMRC yet? keep us posted.

I also recieved a letter (dated 1st aug but i only just opened it) and I will now follow this thread with GREAT interest.

@Oraclesolutions, did your research amount to anything? Ill enable direct messaging so people can talk to me off-thread.

Thanks all, reassuring to know theres a community out there.

Hello again - I still have not received my promised phone call from an Edge consulting expert at the tax office and not holding out any hopes. I have received a generic email from HMRC demanding that I provide evidence of the loans which I will dutifully ignore as I have already told them I don't have any of this information. Will post back when I receive the call and have more info. If I have not received a call by Wednesday will ring them up and chase again but they seem about as efficient as you would expect...

Has anyone actually spoken to one of these technical specialists at HMRC yet to uncover any more information?

Thanks!

[edgeebt]

Add unpaid loans to your other income in 2018/19.

Calculate the total tax due on all income.

Deduct tax paid.

balance is the loan charge.

Thank you webberg. Is this a one-off? Or will this recur every year until the loan is either repaid, or the dispute settled?

[webberg]

Thank you webberg. Is this a one-off? Or will this recur every year until the loan is either repaid, or the dispute settled?

At the moment, it's a once only.

[mattatattat]

Hello again - I still have not received my promised phone call from an Edge consulting expert at the tax office and not holding out any hopes. I have received a generic email from HMRC demanding that I provide evidence of the loans which I will dutifully ignore as I have already told them I don't have any of this information. Will post back when I receive the call and have more info. If I have not received a call by Wednesday will ring them up and chase again but they seem about as efficient as you would expect...

Has anyone actually spoken to one of these technical specialists at HMRC yet to uncover any more information?

Thanks!

Spoke to HMRC today - just the standard call centre.. They told me that the best thing to do is to reply to the automated email requesting the detail I have on the details of the scheme but telling them on what dates I have called, the fact I have not received a call back yet and also that I have no records then at least I don't get hit with the loan charge as I am actively trying to resolve it. They told me that the experts will call me back probably within 3 weeks so I am not expecting a swift response... Will respond when I do

[Oraclesolutions]

Thanks

PM privilege is granted after 6 posts, so if you reply to this post you ought to have access.

[Oraclesolutions]

Does anyone know if Green Bay Consulting was before Edge Consulting or was it vice versa ?

If any one has details of the fees Norla used to charge around 2004 for contractors using the Green Bay / Edge EBT, pls kindly let me know. A private message will be fine too