Reply to: Edge EBT thread

[EdgedOut]

Has one had any progress or comms WRT to edge recently:
1. Getting your loan written off?
2. "Requests" for loan repayment?
3. Demands for IHT payment?
4. IHT confirmed not due?
etc

Knowledge is power - so while I think most people tend to hunker down and hope it all goes away, if you know what's going on, you can be prepared.
I had my loan written off about a year ago now. Made a declaration to HMRC about the write off and have heard nothing back so far.

[EdgedOut]

It’s a couple of pages back on this very thread.

https://forums.contractoruk.com/hmrc...hread-193.html

[Sotman]

Hello all. Just a little note for any ex edge contractors still following here. I am one of the, I believe, comparatively few, who has had my loan written off by Edge.
It was a simple process and the trustee's representative turned it around quickly and easily, without requiring additional payments or fees, unlike some schemes.

The indemnity noted above isn't ideal, but my opinion of it is that any charge incurred should only occur through any attempts by HMRC to claim back IHT against you - so if you're all square with HMRC there is no other known tax or charge due that anyone has been able to identify.

Naturally the next step is now to notify HMRC and see what the IHT bill will be. I am sure it will be as interesting as all HMRC interactions are.

Not trying to persuade anyone this is right for you, nor have a debate about the wording of the indemnity - you need to decide for yourself what the right way forward is.

However, don't sit on the fence and hope it'll go away - do something to either write off the loan or settle/litigate/challenge through one of the schemes. If HMRC deem IHT is due it continues to accrue interest. The best thing would have been to get the loan written off a decade ago.

Hello EdgedOut, I am in a similar position, starting settlement process with the HMRC though I need to contact the Edge trustee to have the loan written off. Could you share who was the trustee representative you contacted?

[EdgedOut]

Hello all. Just a little note for any ex edge contractors still following here. I am one of the, I believe, comparatively few, who has had my loan written off by Edge.
It was a simple process and the trustee's representative turned it around quickly and easily, without requiring additional payments or fees, unlike some schemes.

The indemnity noted above isn't ideal, but my opinion of it is that any charge incurred should only occur through any attempts by HMRC to claim back IHT against you - so if you're all square with HMRC there is no other known tax or charge due that anyone has been able to identify.

Naturally the next step is now to notify HMRC and see what the IHT bill will be. I am sure it will be as interesting as all HMRC interactions are.

Not trying to persuade anyone this is right for you, nor have a debate about the wording of the indemnity - you need to decide for yourself what the right way forward is.

However, don't sit on the fence and hope it'll go away - do something to either write off the loan or settle/litigate/challenge through one of the schemes. If HMRC deem IHT is due it continues to accrue interest. The best thing would have been to get the loan written off a decade ago.

[piebaps]

I'm concerned this is a ticking time bomb, that the loan is going to be sold off to unscrupulous parties who will recall it.

I'd appreciate comments or thoughts on this, please.

As always, you'll need to plot an audit trail to enable you to form a view.

1. The thread refers to "Edge". What "Edge" are you actually referring to? If its a company, what was its full name and where was it incorporated?
2. From the early posts in the thread, "Edge" apparently was taken over/passed onto a thing called "Redstone". What is or was "Redstone"? If its a company, what was its full name and where was it incorporated?
3. Was there anything else after "Redstone"? If so, what was its full name and where was it incorporated?
4. How did "Edge" work? Your question suggests it was a loan scheme. How did that work? Who made the loans? Was it Edge/Redstone or did Edge/Redstone pass the funds into a Trust which then made loans to its beneficiaries?
5. If it was a trust, what was it called, where was it settled and who was the Trustee and has the Trustee been replaced?

Once you get some clarity on these, we'll have a better idea on what the position is and whether there's a possibility of repayment demands. Knowing who the various directors etc were will also give some insight into how things may progress.

Finally, I'm far from convinced that any loan books have been sold to unscrupulous parties. My money is that the people holding the loan books and currently asking for repayments are exactly the same people that were behind the schemes in the first place. I have no evidence for this but if you consider the little we do know;

• The legal position is far from clear that these were genuine loans.
• The worker, the scheme and the Trustees are often in different jurisdictions making legal recovery proceedings awkward and potentially expensive.
• Apart from writing speculative letters, recovery is only possible via engaging with the Courts.

Add all this up and a genuine debt factoring operation wouldn't touch it with a bargepole. Similarly the only guaranteed way to recover loans is via the Courts and nobody unscrupulous would want to do that. These loan books are IMHO so toxic that the only people who would be interested are the very same people who operated the schemes in the first place.

[DealorNoDeal]

I'm concerned this is a ticking time bomb, that the loan is going to be sold off to unscrupulous parties who will recall it.

I'd appreciate comments or thoughts on this, please.

Maybe someone can confirm this but I seem to recall that Edge was one of the schemes where the trustees were willing to write off the loans. Can't remember whether they did this for free or if there was a small admin fee.

[Seven777]

That's good to know (for now) - thank you. I think I misunderstood the context of a previous post quoting a LCAG email received, and thought they had been sent to Edge users.

Thanks for your reply.

I'm concerned this is a ticking time bomb, that the loan is going to be sold off to unscrupulous parties who will recall it.

I'd appreciate comments or thoughts on this, please.

[meanttobeworking]

Someone can correct me if I'm wrong but I don't think any Edge users have received repayment demands.

Only certain schemes have been targeted and I don't believe Edge is one of them.

That's good to know (for now) - thank you. I think I misunderstood the context of a previous post quoting a LCAG email received, and thought they had been sent to Edge users.

Thanks for your reply.

[DealorNoDeal]

I'm a bit late to the party regarding the repayment demands.

I used Edge pre 2011, for a few months. I've moved house several times since then, but have no reason to believe they've written to me. If they've emailed me, it's been swallowed by a spam filter so I've seen nothing.

Any advice?

Someone can correct me if I'm wrong but I don't think any Edge users have received repayment demands.

Only certain schemes have been targeted and I don't believe Edge is one of them.

[meanttobeworking]

I'm a bit late to the party regarding the repayment demands.

I used Edge pre 2011, for a few months. I've moved house several times since then, but have no reason to believe they've written to me. If they've emailed me, it's been swallowed by a spam filter so I've seen nothing.

Any advice?

[Dilbert]

What is your opinion of the "indemnity" they are asking you take on the loan write off, please?
Did you just figure that's the trustee's safety net in case HMRC go after them for IHT, or is there more to it, in your opinion?

What did you do about the indemnity in the end EdgedOut? WTT are advising me to challenge it but I'm not sure we're in a strong negotiating position. Did you just go with it?

[EBTContractor]

Hi,

Has anyone had their loan written off recently and willing to share what was involved, i.e. cost, process, guarantee ?

Cheers

I have the same questions....

[jbeer]

Anyone had loan write off

Hi,

Has anyone had their loan written off recently and willing to share what was involved, i.e. cost, process, guarantee ?

Cheers

[webberg]

What indemnity?

I was going to look into getting my loan written off so would be keen to know!

I suggest you ask Edge and they will share their indemnity with you.

[Talgarth]

What is your opinion of the "indemnity" they are asking you take on the loan write off, please?
Did you just figure that's the trustee's safety net in case HMRC go after them for IHT, or is there more to it, in your opinion?

What indemnity?

I was going to look into getting my loan written off so would be keen to know!