Reply to: Pembroke PAYE Umbrella closing down

[eek]

From what you’ve said HMRC have asked you to complete self assessment forms, so the onus is on you to decide how to report them - though you might ask HMRC for their opinion.

If the loans came from your “employer” then they are a benefit under existing tax law.

You also have to consider what the liquidator will do with the loans in the future (Assuming he hasn’t done anything yet) If he writes them off then a tax charge may crystallise.

Remember advice is only worth what you pay for it.

I would recommend getting some proper legal advice from someone with expertise.

[Chevalier]

3. How will HMRC deal with these loans, an advisor I spoke to suggested them may be forced to tax it as a Benefit In Kind (BIK) especially based on point 2 above.

Thanks all,

From what you’ve said HMRC have asked you to complete self assessment forms, so the onus is on you to decide how to report them - though you might ask HMRC for their opinion.

If the loans came from your “employer” then they are a benefit under existing tax law.

You also have to consider what the liquidator will do with the loans in the future (Assuming he hasn’t done anything yet) If he writes them off then a tax charge may crystallise.

[AnthonyB]

Hey, I have three curiosities I wonder if anyone can help...

1. I know of two other people that worked with me using the same umbrella, with the same consulting firm working for the same end client... neither of them have had letters but I have, does anyone know why that might be?

2. The Loan Charge Legislation specifically states it applies to loans from 3rd parties but the loans here were direct from Pembroke ie. not a third party, ie. this legislation cannot apply, so what are they going to do to deal with that?

3. How will HMRC deal with these loans, an advisor I spoke to suggested them may be forced to tax it as a Benefit In Kind (BIK) especially based on point 2 above.

Thanks all,

[Ian Richardson GT IoM]

Will HMRC even know the loan amounts? Any advice is greatly appreciated

i can confirm that HMRC do know the loan amounts for this company

[Chevalier]

Hi Ive been hearing from HMRC recently re. my tax years with Pembroke and their following companies, has anyone thats been through this able to contact me and let me know my best options? I seen this is all from a few years ago now so did anyone end up paying tax on the loans and if so were there any extra penalties involved?

I have to submit 3 years of self assessment forms and don't know where to begin or even if i should include the loans. Will HMRC even know the loan amounts? Any advice is greatly appreciated

I would advise approaching a specialist tax firm (such as WTT) for an initial conversation to discuss your position - these are normally free and such you can make a decision as how you want to proceed..

HMRC won’t automatically know the value of the loans you’ve received, but may have already requested this from the firms ( or any receivers handling their affairs)

However any U.K. agency involved (since 2014) are likely to have reported off payroll payments to HMRC

Personally speaking I think you would be ill advised not to report the loans (unless specifically directed by an independent tax advisor). HMRC are likely to investigate and have the powers to ask for your bank statements!

[mikeappleyard4]

Hi Ive been hearing from HMRC recently re. my tax years with Pembroke and their following companies, has anyone thats been through this able to contact me and let me know my best options? I seen this is all from a few years ago now so did anyone end up paying tax on the loans and if so were there any extra penalties involved?

I have to submit 3 years of self assessment forms and don't know where to begin or even if i should include the loans. Will HMRC even know the loan amounts? Any advice is greatly appreciated

[No1 WhistleB]

Anyone else previously contracted through Pembroke PAYE?

They appear to have gone off the radar and are completely closing down. I noticed this after recieving a letter from HMRC asking me to complete a self-assesment for 17/18 which is all rather worrying.

Possible loan charge connections etc. etc.

Keen to hear if anyone else is hearing from HMRC and has been with Pembroke PAYE previously.

Thanks,

Personally used to work "very" closely with Synergy and pembroke and all of Peter Adamsons umbrella empire.

All umbrellas they used worked along side a tax "efficent" structure and as a result has now landed contractors big bills to pay.
I believe they all operated out of a close network of offices in the UK - Isle Of Man - Ireland where all of the tax planning products were used.

To list the umbrellas that they used in the time i was with them contracting myself was;

Best Employment Services
Daily Employment Services
Opus Best Pay
PNO Umbrella
Pembroke PAYE
Synergy PAYE
Contracting Payes - where the director has allegedly stolen the money and ran off due to a possible VAT bill.
Pure Invoicing (which i believe is still in operation)
and numerous others which i couldn't guarantee use a planning structure.

I am also aware that the director of one of the companies has seen this thread and as a result "scared" him into stepping down and putting in position a new director (fall guy)

Please in future if you are using an umbrella solution for payment you ensure you are being paid via the PAYE structure!

[AnthonyB]

Would agree with the above, I think getting your tax wrong is one think, intentionally lying in order to hide money from HMRC is another thing. I'd be very careful. If you DM me I will trade emails. I would suggest you speak to Chris O'Hara @ Harts as he is familiar and advising others on this.

[piebaps]

I've been sent a request to do a SA, for when I used Pembroke in 18/19. I've not filled it in yet, but I'm not sure if I should mention the loans which will leave me open for a tax bill. What do you think and has anyone filled in a SA and not mentioned the loans. Please DM me as I'm unable to do so myself.

You can learn a little more about use of DM here https://forums.contractoruk.com/hmrc...-requests.html

[eek]

I've been sent a request to do a SA, for when I used Pembroke in 18/19. I've not filled it in yet, but I'm not sure if I should mention the loans which will leave me open for a tax bill. What do you think and has anyone filled in a SA and not mentioned the loans. Please DM me as I'm unable to do so myself.

You can’t DM people as you don’t have enough posts yet.

and what you really need is some advice so call WTT as they should give you a first consultation for free.

what I will say is don’t lie on you self assessment form so get advice before you fill it in

[Paralytic]

I've been sent a request to do a SA, for when I used Pembroke in 18/19. I've not filled it in yet, but I'm not sure if I should mention the loans which will leave me open for a tax bill. What do you think and has anyone filled in a SA and not mentioned the loans. Please DM me as I'm unable to do so myself.

Did the request suggest why you've been requested to complete an SA for a historical tax year? Have you considered that HMRC know that you used a disguised remuneration scheme and are now being given you the opportunity to correct your tax affairs?

I'd be wary of being intentionally omitting details being asked of you, or even obfuscating things.

[anotherPen]

I've been sent a request to do a SA, for when I used Pembroke in 18/19. I've not filled it in yet, but I'm not sure if I should mention the loans which will leave me open for a tax bill. What do you think and has anyone filled in a SA and not mentioned the loans. Please DM me as I'm unable to do so myself.

[AnthonyB]

Also, does anyone have any progress/updates on this?

I know the liquidator (@Ian Richardson GT Leeds) is on this forum, I don't suppose you have any update do you Ian?

I have so far heard nothing, anybody got any news?

It seems crazy they can take this long to make any progress and tap 8% interest on. If HMRC ever open a savings account I'll be first in line...

[AnthonyB]

I've DM'd Sameissue and Sheps. If they can't access DMs any idea what else we can do to privately share contact details?

Otherwise Sameissue and Sheps, why don't you have a look around the forums and contribute to a few threads and get your count up.

[Sameissue]

I'd like to also be added to the group, please. If Admin could share with you my account email

I wasn't sure with the scheme from day one, so I inundated them with emails all of which I have saved. Maybe helpful.

For anyone reading there is now a small group of four of us in the same boat, seeking legal advice and sharing information. If you are reading and also impacted by Pembroke please feel free to DM me to connect with us.