Reply to: I wonder how many other users are in the dark about LC19?

[Loan Ranger]

Of course, if you have an understanding of how best to request an extended payment period from HMRC, I am happy to be so informed.

Because you are overseas, and in a non-EU country, it will be more difficult for HMRC to pursue the debt. If there is a tax treaty between the UK and your country, they would have to ask your tax authorities to collect it.

I therefore think they will be more than amenable to a longer payment plan. In fact, if I were you, I would start by asking for a lot more than 3 years.

It might be worth seeking professional advice in your country to find out what HMRC can actually do to recover the debt.

[phil@pmtc]

Thanks. As I replied to Loan Ranger - I agree bankruptcy is not the best option.

However, HMRC seem to only offer 12 month payment terms. If that is not correct and/or if there is a mechanism to extend this payment period, then I hope you might be able to point me in the right direction to request such terms.

Thank you.

Whilst there’s no guarantee I find that they are accepting 2 or 3 year Payment terms relatively often. Probably best if you have a call with an advisor (either myself or any other) and they can fully explain the options available.

[ColTigh]

Whilst I don’t know your personal circumstances I’d be cautious about leaping straight to bankruptcy. I’d suggest registering interest to settle, find out the potential liability and then take from there. A time to pay arrangement should be available.

Thanks. As I replied to Loan Ranger - I agree bankruptcy is not the best option.

However, HMRC seem to only offer 12 month payment terms. If that is not correct and/or if there is a mechanism to extend this payment period, then I hope you might be able to point me in the right direction to request such terms.

Thank you.

[ColTigh]

Bankruptcy would include this tax debt. But what are you hoping to achieve from bankruptcy? You will still have to declare any assets you have overseas (eg. property) and liquidate them to pay the debt.

A 2 to 3 year repayment plan should be achievable.

Thanks. Yeah - I did some more research following this post....you are correct in that bankruptcy would not protect overseas assets. However, my previous dealings with HMRC has indicated that they do not offer a mechanism to pay beyond a 12 month period. However, I suspect with in the instances of many people caught up in this, they will have to rethink that approach.

Of course, if you have an understanding of how best to request an extended payment period from HMRC, I am happy to be so informed.

Thank you.

[phil@pmtc]

Whilst I don’t know your personal circumstances I’d be cautious about leaping straight to bankruptcy. I’d suggest registering interest to settle, find out the potential liability and then take from there. A time to pay arrangement should be available.

[Loan Ranger]

Bankruptcy would include this tax debt. But what are you hoping to achieve from bankruptcy? You will still have to declare any assets you have overseas (eg. property) and liquidate them to pay the debt.

A 2 to 3 year repayment plan should be achievable.

[ColTigh]

2019 Options

Hi to all,

As a newbie to this forum, I have to say thanks to everyone who has posted thus far - it is somehow encouraging to see that there are many of us in the same boat.

As for me, I no longer live in the UK, but I was a contractor with AML for 1 year, before I moved overseas. I have no plans to return or work in the UK and have no assets or funds in the UK. As such am considering the following plan of action:

1. Register my settlement intent with HMRC in May; and
2. Once I receive a statement from them as to what I owe, apply for Bankruptcy in the UK - according to the UK Bankruptcy info site, I can do this while not living in the UK and parts of the EU.

However, the question is, does bankruptcy in the UK allow the inclusion of this type of tax debt? I know it generally encompasses other forms of tax debt, but as this is such a new and hideous form of reprisal, I am not sure whether it does. Any informed opinions would be appreciated.

Otherwise, I will have to organise a repayment plan with HMRC - given that they cannot take the funds out of my 2019/2020 salary (as I’m not in the UK), would they allow for a 2-3 year payment plan instead?

Apologise if these are niaive questions, but hope someone can steer me straight.

Many thanks.

[me206et]

Who will inform these individuals of their responsibility to sign up for the LC?
And if they don't disclose all on the LC, how can HMRC possibly hold them liable for late payment penalties if/when they are caught?

Technically ignorance of the law is no defence.
I was with horizon, lutea now venturis back around 2003, and was informed by them about a year ago.
Also with a scheme to avoid the charge.
Amazingly similar and also at a cost.

Cslo2 would seem the way ahead, even though I completely disagree with the whole retrospective mess.

[ChimpMaster]

Well, there I was enjoying a nice morning cup of tea whilst catching up on my emails 2 days ago. I noticed a name I had not had any dealings with for several years and thought, no, I must be seeing things. But oh no, I was NOT! After reading them I nearly had to lie down I was so utterly shocked and stunned!! Yes, I too had just been told by AML of the nice surprise HMRC might have in store for me. <snip>

This harks back to my earlier post on this thread. If AML hadn't informed their contractors (past and present), how else would the individuals found out about the LC? Especially where there aren't any open enquiries, the possibility is that the individuals would have "gotten away with it", or at least for some length of time.

In some ways AML are to be lauded for being one of the last remaining scheme providers to at least be communicating with their contractors. Most providers have long since disappeared, leaving a trail of destruction and a future of debt and depression for contractors.


There could be another 60,000 people out there who at one time in their life made the choice to use a scheme, and where that scheme has long since gone, and where that contractor is not reading CUK and might well have retired from I.T.

Who will inform these individuals of their responsibility to sign up for the LC?
And if they don't disclose all on the LC, how can HMRC possibly hold them liable for late payment penalties if/when they are caught?

[catesby]

I'm sure that this isn’t needed yet, but just to let you know it’s there

please-read-if-you-desperate-feel-you-running-out-options.html

...in gratitude, once again.

[cojak]

I'm sure that this isn’t needed yet, but just to let you know it’s there

Please read if you are desperate and feel you are running out of options.

[catesby]

We've probably spoken with 50+ people in the last few days.

These are either AML users or another scheme where the trustee recently sent out a "be warned" note.

I would say perhaps 20 had no idea what was happening - never had HMRC enquiry - never heard of the charge.

If that very unscientific poll is true, then HMRC's alleged 65,000 impacted people is light by around 40,000 or so?

That brings us to around 100,000 which is closer to our estimate.

That includes me - if this forum hadn't existed, I would honestly have no clue what to do - it feels like a life-raft at the moment. I've been working through PCL (AML) and SP in the IoM (although I am now aware that it's effectively all one and the same entity) in recent years and the first I knew of any LC legislation was the resounding clatter as the emails dropped into my account last week.

My call with WTT scheduled for next week can't come round soon enough....

[LandRover]

Well, there I was enjoying a nice morning cup of tea whilst catching up on my emails 2 days ago. I noticed a name I had not had any dealings with for several years and thought, no, I must be seeing things. But oh no, I was NOT! After reading them I nearly had to lie down I was so utterly shocked and stunned!! Yes, I too had just been told by AML of the nice surprise HMRC might have in store for me.

I had absolutely no idea or any inkling WHATSOEVER of any of this, having severed my connection after a relatively short period of time with them as I wasn't 'comfortable' with the scheme a colleague had recommended.

But, as stated frequently in the many posts and info I have now crammed into my head over the last 48 hours, there's no use crying over ........ It has to be dealt with.

So, what to do? My first port of call was my accountant and even he wasn't clued up on it. Thankfully this forum came up on my radar. So personally, I have decided that being as I am not equipped to tackle this on my own right now, I shall ask for professional advice. To that end I have arranged a telecon with WTT on Monday.

I would just like to say I am grateful to the professionals like webberg and phil@ for their sensible and calming words. And for all the others who have shared their experiences of what is still at the moment a living nightmare. Good luck to all in their future battles!!

Sadly many are now waking up to this nightmare. The estimates from HMRC of 40,000 people affected are woeful and many predict 100,000 plus.

Get on twitter and demonstrate your utter contempt for this vindictive retrospective legislation.

Join like minded groups who are outraged by this. Write to your MP, let him know how devastating this is, the MPs have blindly allowed HMRC to get off with their incompetence.

https://www.hmrcloancharge.info/

https://twitter.com/LCAG_2019

[BLOWNOVER]

Almost speechless!

Well, there I was enjoying a nice morning cup of tea whilst catching up on my emails 2 days ago. I noticed a name I had not had any dealings with for several years and thought, no, I must be seeing things. But oh no, I was NOT! After reading them I nearly had to lie down I was so utterly shocked and stunned!! Yes, I too had just been told by AML of the nice surprise HMRC might have in store for me.

I had absolutely no idea or any inkling WHATSOEVER of any of this, having severed my connection after a relatively short period of time with them as I wasn't 'comfortable' with the scheme a colleague had recommended.

But, as stated frequently in the many posts and info I have now crammed into my head over the last 48 hours, there's no use crying over ........ It has to be dealt with.

So, what to do? My first port of call was my accountant and even he wasn't clued up on it. Thankfully this forum came up on my radar. So personally, I have decided that being as I am not equipped to tackle this on my own right now, I shall ask for professional advice. To that end I have arranged a telecon with WTT on Monday.

I would just like to say I am grateful to the professionals like webberg and phil@ for their sensible and calming words. And for all the others who have shared their experiences of what is still at the moment a living nightmare. Good luck to all in their future battles!!

[webberg]

I'm happy to discuss but not here.

contact me via our info email address or my own please.