Overdrawn Capital Account Scheme (Aston Mae / Glen Mae / Procorre) Overdrawn Capital Account Scheme (Aston Mae / Glen Mae / Procorre) - Page 41
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  1. #401

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    Quote Originally Posted by Joby View Post
    ...from a loan charge perspective, how are overdrawn capital account payments taxed? I see lots of correspondence that talks about "the balance of loans outstanding" but how does that apply to overdrawn capital accounts? Is it the sum total of the payments made or the balance of the overdrawn capital account?
    Is an overdraft just a form of loan?

  2. #402

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    Quote Originally Posted by Joby View Post
    ...this PM rights that people seem to be referring to?
    PM is the recognized forum abbreviation for "Private Message" (sometimes also referred to as Direct message or DM). This facility allows you to contact other forum members privately.
    Your rights to do this are granted automatically after a number of posts (I can't remember whether its 5 or 10). If you want PM rights before that, you have to ask admin.

  3. #403

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    Quote Originally Posted by piebaps View Post
    PM is the recognized forum abbreviation for "Private Message" (sometimes also referred to as Direct message or DM). This facility allows you to contact other forum members privately.
    Your rights to do this are granted automatically after a number of posts (I can't remember whether its 5 or 10). If you want PM rights before that, you have to ask admin.
    See also https://www.contractoruk.com/forums/...-requests.html
    merely at clientco for the entertainment

  4. #404

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    Default Overdrawn Capital Account Scheme (Aston Mae/Glen Mae/Procorre) - Contd

    Quote Originally Posted by Smurfburger View Post
    I was with Glen May between 2012/13 - 2016/17. In 2019 I wrote to the compliance team to ask if I needed to declare any amounts as Loan Charge relevant and they said their tax counsel had confirmed that no loan payments were made. As such, there is no need to declare anything.

    I have paid the tax on all of the profit share I have been told to declare in the partnership pages.

    Yesterday, I received a Check of Self Assessment for 2018/19. The letter simply states that they think I should have declared the use of a tax avoidance scheme. It seems to be a fishing type letter. I have replied and asked them to be specific about the scheme(s) to which they refer since I feel my 2018/19 return was correct.

    I would be keen to be added to the WhatsApp group if it is still running.
    Hi There,
    I am also in the same fix - I was with Glen May and then Procorre from 2012/13 until 2016/2017. I was also assured that there we acting in compliance to legislation but the letters from HMRC would not stop.
    The recent one is still asking me to declare disguised payments or loans. This time, they have identified Glen May as the partnership but not Procorre.
    I had previously forwarded a prepared letter from Glen May where I had stated overdrawn capital accounts for the years. I am now suspecting that I will have to pay tax for this. I am not sure what action to take now, but like everyone here I just want this done and over with.
    So, Admin, could I have PM rights, please? So I can connect with others.
    I will truly appreciate it.

  5. #405

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    Quote Originally Posted by legbe01 View Post
    Hi There,
    I am also in the same fix - I was with Glen May and then Procorre from 2012/13 until 2016/2017. I was also assured that there we acting in compliance to legislation but the letters from HMRC would not stop.
    The recent one is still asking me to declare disguised payments or loans. This time, they have identified Glen May as the partnership but not Procorre.
    I had previously forwarded a prepared letter from Glen May where I had stated overdrawn capital accounts for the years. I am now suspecting that I will have to pay tax for this. I am not sure what action to take now, but like everyone here I just want this done and over with.
    So, Admin, could I have PM rights, please? So I can connect with others.
    I will truly appreciate it.
    Who do you propose to talk to? As you really need tax and legal advice from people you find by a google search not strangers on an anonymous internet forum.
    merely at clientco for the entertainment

  6. #406

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    Quote Originally Posted by piebaps View Post
    Is an overdraft just a form of loan?
    HMRC seem to believe that to be the case but, having worked in financial services for many years, an overdraft is a form of credit which can be converted to a loan. It still doesn't answer my fundamental question...what is outstanding? The sum total of all the overdrawn capital account payments or the balance of the overdrawn capital account? If there was no expectation that an overdrawn capital account payment was to be repaid then surely it cannot be outstanding? Surely the 'only' thing that is outstanding is the balance of the overdrawn capital account? Views most welcome.

  7. #407

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    Quote Originally Posted by Joby View Post
    It still doesn't answer my fundamental question...what is outstanding?
    This tells you what is "outstanding" (assuming it is in sterling) https://www.contractoruk.com/forums/...heme-enquiries

    If you want to find out what a loan is, just click the previous paragraph button.

  8. #408

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    Default Another mug...

    Hello everyone, I am also looking for help with Procorre.

    Was with AM/GM under their umbrella firm for 2014-15 before being pressured to use my own business in September 2015, and then finally transferred to Procorre in 2016.
    I too have had HMRC circling first for the 2017-18 and now for the 2018-19 tax years.

    I have had some success with Procorre legal who after months of chasing during 2019, they finally prepared a letter for me to send to HMRC explaining that this is not a disguised remuneration / loan scheme.

    HMRC seem to have cooled on the 17-18 tax year and instead sent me a Merry Christmas letter in December 2020 in the form of a latest investigation of my 2018-19 tax year, I'm just happy I got out towards the end of 2018 and, apart from a small stint on an umbrella at the beginning of 2020, I am back in the relative safety of full-time employment, albeit, my pay has been cut substantially though on a balance, this doesn't seem to be a bad thing.

    Just like most of us caught in the net, I spoke with my AM/GM and Procorre contacts about this scheme to ensure it is legal and my tax obligations were being fulfilled: "Yes, we take the money, pool it together as this is a partnership, deduct your partnership tax at 12%, and your corporation tax at 17%, then send the outstanding back to you. Then when you complete your end of year, we send the amounts we have deducted to HMRC ensuring you are completely covered and all of your obligations have been met."

    My accountant also confirmed that this was completely above board and legal, and was the better system as it meant that I could continue working in IT doing what I'm best at rather than getting bogged down in accountancy, I worry now that the accountant GWAS my well be on Procorre's books.

    And now, I have this letter from Procorre regarding the settlement of my Overdrawn capital account. What the??! What is a capital account, and why is it overdrawn? Why did you only notify me of this 18 months after I stopped contracting? And why are you telling me I need to pay tax on it 18 months after I could have ensured I kept the funds back to cover this?

    I now need to respond to HMRC in the next 30 days (end of Feb 21) regarding their latest disguised remuneration letter, and still do not know what I should be doing about this Overdrawn Capital Account information.

    A familiar story? Can anyone help?

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