Originally posted by landsendsolo
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Previously on "Financial advisor required for Hmrc loan charge demand."
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Originally posted by DealorNoDeal View PostI believe the deadline for submitting the return is 1 October 2020.
You'll have to make a decision fairly soon. Your 3 choices are:
(1) Press ahead with the Vanquish arrangement, and state on your return that the loans were repaid before 5 Apr 2019
(2) Pay the loan charge. You can spread this across 3 tax years, and you can pay by installments over several years (time to pay)
(3) Settle. You may be too late to do this but, if you would prefer to settle, it's worth asking. This would mean paying tax (+ interest) on the loans as though they were income in the years you received them. Like the loan charge, you can pay by installments over several years.
If you decide to do (1), prepare yourself for a legal dispute because I can guarantee HMRC won't accept that the loans have been legitimately repaid. I don't know whether Vanquish are still around to defend the arrangement. You'd need to contact them about this.
Vanquish Options are liquidated according to companies House.
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Originally posted by landsendsolo View PostI had no earnings for 2018/19 so never put in a return but I was told by vanquish options to add a note to returns if I had any stating that the loans in questions had been settled.
Funnily enough I have received a request from Hmrc in the last couple of weeks to submit a return for 2018/19.
I've contacted Gilbert Tax for advice, waiting for one of their tax advisers to get back to me.
You'll have to make a decision fairly soon. Your 3 choices are:
(1) Press ahead with the Vanquish arrangement, and state on your return that the loans were repaid before 5 Apr 2019
(2) Pay the loan charge. You can spread this across 3 tax years, and you can pay by installments over several years (time to pay)
(3) Settle. You may be too late to do this but, if you would prefer to settle, it's worth asking. This would mean paying tax (+ interest) on the loans as though they were income in the years you received them. Like the loan charge, you can pay by installments over several years.
If you decide to do (1), prepare yourself for a legal dispute because I can guarantee HMRC won't accept that the loans have been legitimately repaid. I don't know whether Vanquish are still around to defend the arrangement. You'd need to contact them about this.Last edited by DealorNoDeal; 17 July 2020, 19:07.
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This is what Vanquish Options advised for returns.
Good afternoon,
As you will be aware there is a requirement to Notify HMRC of certain information in relation to the loans that you had. We have reviewed the requirements and can confirm that we have been advised that you do not need to notify HMRC in respect of your loans.
If HMRC require you to submit a tax return for 2018/19 you will need to complete and submit it to them. As your loans were repaid by 5 April 2019 you will not need to return any details in respect of the loan charge. You should add a note to the return in the free text space stating that you did receive loans that would be caught by the Loan Charge, but that these were all repaid by 5 April 2019.
If you have any questions please email us at [email protected]. This will enable us to deal with any queries in the most efficient way.
Kind Regards,
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Originally posted by DealorNoDeal View PostI'm making some assumptions here (which I know is not always a good idea).
Presumably the Vanquish thing involved doing something during the 2018/19 tax year to counteract the LC?
Did that something have to be notified to HMRC at the time? Or, would HMRC only become aware of it when you submitted your 2018/19 tax return?
If the latter, have you already submitted your 2018/19 tax return? If so, what did you put on it?
Funnily enough I have received a request from Hmrc in the last couple of weeks to submit a return for 2018/19.
I've contacted Gilbert Tax for advice, waiting for one of their tax advisers to get back to me.
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Originally posted by cojak View PostThere have been a number of Vanquish posts over the last few days so I'm guessing that emails are landing in inboxes.
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There have been a number of Vanquish posts over the last few days so I'm guessing that emails are landing in inboxes.
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I'm making some assumptions here (which I know is not always a good idea).
Presumably the Vanquish thing involved doing something during the 2018/19 tax year to counteract the LC?
Did that something have to be notified to HMRC at the time? Or, would HMRC only become aware of it when you submitted your 2018/19 tax return?
If the latter, have you already submitted your 2018/19 tax return? If so, what did you put on it?
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To the best of my knowledge NO "loan charge demands" have been issued as the due date is 30th September 2020.
I suspect that what you have (if anything) is one of perhaps two letters from HMRC.
One will say that you have an opportunity to settle and that it will expire soon.
The other may be a more detailed letter concerning the actions undertaken around the loan charge avoidance plan from Vanquish.
There is speculation in these threads about HMRC policy re the use of loan charge avoidance schemes and whether they will rather more aggressive toward them than the usual run of enquiries.
A lot of people who used AML and who assumed (rightly or wrongly) that they were ALSO their tax agent (suggest you check the engagement terms) did get advice from their in house tax team.
My understanding is that the majority of that team, at the time AML pulled back from active schemes, came together in a new company. That new company did contact many AML users for various purposes.
Connections between AML, the new tax firm and Vanquish are rather more tangled and implied than explicit. In our view however there is a connection. Regardless, evidence that the tax firm had any involvement in Vanquish, before, during or post the structuring is inconclusive.
Nonetheless it would be sensible to start with that tax firm as their past/present relationship with AML may allow them to know what the Vanquish scheme set out to do and how to defend against the HMRC claims.
I cannot name them because of forum rules, but a few minutes research will reward you.
Bear in mind that having connections between vendor of product and tax advisory firms is probably good in terms of information, but can also create conflicts of interest.
Other than that, Google will give you a list of tax advisers and refining your search to terms such as "loan charge", "contractors", will narrow down the list of candidates.
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Originally posted by DealorNoDeal View PostI hope this isn't a sockie.
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Financial advisor required for Hmrc loan charge demand.
Hi,
I'm new here and desperately need a financial advisor to have a look at my situation with regards to Hmrc Loan Charge demand.
I stupidly paid the 5% scheme with Vanquish Options and Hmrc are still chasing me.
Many thanks,
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