• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

“ I owe £180,000 in tax and I haven’t told my wife”

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Over 6 years?

    Originally posted by cojak View Post
    If the loans are "safe" doesn't that mean that one sunny day your 'employer' can demand that you repay the loan?

    Just a thought...
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
    - Voltaire/Benjamin Franklin/Anne Frank...

    Comment


      Originally posted by cojak View Post
      Over 6 years?
      That was merely based on that post - but you beat me given that post is before I joined this site with this username.
      Last edited by eek; 27 October 2020, 16:12.
      merely at clientco for the entertainment

      Comment


        Originally posted by NowPermOutsideUK View Post
        I know this is general so forgive me for asking but having read the hmrc forums can I just make sure I understand in a nutshell what happened to people who took out loans as disguised renumeration

        1) hmrc are rolling up all the loans and taxing them in one year - ok that I understand and expected from the loan scheme

        2) more worryingly liquidators are now chasing the contractors and asking for the loans to be repaid

        Is this the way the cookie crumbles with the contractor get shafted by both hmrc and liquidator or a bogus loan?

        Like I said I did not do this loan scheme but if (2) is true then this is really nuts
        I think point 1) is pretty simple, in that any loan that is cancelled or forgiven is treated as taxable income at that moment. Quite how anyone thought they would get away with this sort of scheme is beyond me. HMRC don't really need to prove any sort of intent to claw to the money back on that basis alone.

        I too am curious about point 2). I sat next to someone back in 2001 who went for one of these schemes - from (faded) memory it was involved something truly bonkers like a pineapple farm in the Bahamas, but I might be embellishing that. I told him at the time that I thought he was mad, and I did wonder how you could both set up a legally realistic looking loan without also having the real risk that your creditor could eventually come looking for the money back. Does anyone know if this has actually happened to anyone since then? The person I sat next to was on a good rate, for a fair few years, and also an extremely profligate spender. I haven't kept in touch but I do wonder if he got caught out by it in the end.

        Comment


          From posts in the HMRC forum (2) looks like its really happening which caused me to raise my eyebrows. SHocking but apparently true fine and legal

          Comment


            Originally posted by nowpermoutsideuk View Post
            from posts in the hmrc forum (2) looks like its really happening which caused me to raise my eyebrows. Shocking but apparently true fine and legal

            fog
            folpm1
            fonpouk
            Vote Corbyn ! Save this country !

            Comment


              Originally posted by mattster View Post
              I think point 1) is pretty simple, in that any loan that is cancelled or forgiven is treated as taxable income at that moment. Quite how anyone thought they would get away with this sort of scheme is beyond me. HMRC don't really need to prove any sort of intent to claw to the money back on that basis alone.

              I too am curious about point 2). I sat next to someone back in 2001 who went for one of these schemes - from (faded) memory it was involved something truly bonkers like a pineapple farm in the Bahamas, but I might be embellishing that. I told him at the time that I thought he was mad, and I did wonder how you could both set up a legally realistic looking loan without also having the real risk that your creditor could eventually come looking for the money back. Does anyone know if this has actually happened to anyone since then? The person I sat next to was on a good rate, for a fair few years, and also an extremely profligate spender. I haven't kept in touch but I do wonder if he got caught out by it in the end.
              Nope - HMRC will treat a loan as if it was income and expect the appropriate tax to be paid as to all intents and purposes it is income. See https://www.contractoruk.com/forums/...-entities.html for an overview of a recent case.

              If the loan is forgiven or written off it's possible that inheritance tax may be due if the "loan" came from a trust.

              As for point 2 - see https://www.contractoruk.com/forums/...s-summary.html one of the risks of getting the loan shifted overseas is that they may fail to actually do so legally (see all the Bestpay examples) and the other one is that the loan ends up returning back to the IoM later (see Fecilitas).
              Last edited by Contractor UK; 11 January 2021, 12:27.
              merely at clientco for the entertainment

              Comment


                And there's the possibility of IHT to consider.

                Great news for a widow to read from her doormat mail I would imagine.
                "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
                - Voltaire/Benjamin Franklin/Anne Frank...

                Comment


                  Originally posted by cojak View Post
                  And there's the possibility of IHT to consider.

                  Great news for a widow to read from her doormat mail I would imagine.
                  Or Widower. #JustSaying
                  Old Greg - In search of acceptance since Mar 2007. Hoping each leap will be his last.

                  Comment

                  Working...
                  X