AML 2019 Loan Charge

[catanonia]

Use this calculator.

https://www.uktaxcalculators.co.uk

Worked Example

Tax year 2008/9.

You received a salary of £15k. You paid £1,793 in tax on it.

You received loans of £80k. Plugging total £95k into the calculator, gives tax of £28,626.

Settlement would be £28,626 less what you've already paid £1,793. Ie. £26,833

If it's a protected (open) year, interest on top would be approximately 26% ie. £6,976

-------------------------

Tax Year...........Accrued Interest
2001/2....................72%
2002/3....................66%
2003/4....................60%
2004/5....................52%
2005/6....................46%
2006/7....................38%
2007/8....................30%
2008/9....................26%
2009/10...................23%
2010/11...................20%
2011/12...................17%
2012/13...................14%
2013/14...................11%
.

PS. interest and other handy stuff is included in the PDF
https://forums.contractoruk.com/hmrc...g-vs-lc19.html

Yup those numbers seem about right looking at them and my CLSO2 settlement.

[Kiwi2018]

Hi, new on here and attempting to read up on some of the threads finding it reassuring to discover I am not alone being caught up in all this, and the stress!
Regretfully I was with AML for 3 years and have open enquiries on years ending 2009 and 2011.
Received the emails from AML last week regarding the loan charge so will be looking to seek advice and find out my options.
Does anyone know if my situation is any different as I am now resident of New Zealand?
Also, can the amounts already paid via APN be factored into the calculations?

[piebaps]

[QUOTE=Ineedabeer;2548219]I recieved the 2 mails last week. I worked via AML in 2012 and 13, have always done my own Self Assessment and have never had any queries from HMRC re AML loan payments.
I'm trying to step back and rationalise what is going on here. I've read through this thread and have a couple of further questions (apologies if I 've missed the boat somewhere)...

i) What is the motivation for AML/PTS/Knox to suddenly inform us about this (other than the fees they will rake in if we register with PTS to disclose loan details and manage the settlement)?

It could be as you suggest and an attempt to generate fee income. It may also be that they have just made their disclosure to HMRC and are giving you advance warning of a coming storm.
Equally there could be a totally different trigger.

Apologies for messed up quote.

[webberg]

[QUOTE=piebaps;2548451]

i) What is the motivation for AML/PTS/Knox to suddenly inform us about this (other than the fees they will rake in if we register with PTS to disclose loan details and manage the settlement)?

It could be as you suggest and an attempt to generate fee income. It may also be that they have just made their disclosure to HMRC and are giving you advance warning of a coming storm.
Equally there could be a totally different trigger.

Apologies for messed up quote.

i) there is a reporting requirement for pretty much all parties involved which is 30/9/19. If you want to use their suggested scheme however, I suspect that the loan has to be outside the legislation in whatever way they claim prevents the charge arising by 5/4/19. A lead time of a year is about right for a period of gathering enough numbers to make it worthwhile.

An alternative is the CLSO terms and you have to register by 31/5/18.

It's not just AML doing this. We know of at least two other schemes who have sent out an advisory.

[Guyver]

confused

Hi, just got the email from Knox & SmartPay y'day regarding these changes.
I was on Smart Pay books from 2015-Mar 2018 - i have been able to download all my payments from their portal.

I have spoken to my cousin who was with Smartpay for a small period of time, and he told me that Vanquish have told him that he can repay the loan (transfer it to another company), which is a loophole i assume - but will HMRC clock on to this?
Also that HMRC can only go up to loans till 2016 and nothing after that, so 2016 onwards will not be taken into account - in this right????

I have spoken to Vanquish myself and they are due to call me tomorrow and walk me through my options, however after reading all the posts here it seems like they probably arent the most trustworthy.

Any advice/help will be really appreciated.

[Dundeegalaxy]

BD Woman from Vanquish worked at AML from 2012 - 2015

Despite Vanquish looking to claim they have nothing to do with AML....

The lady who calls you from Vanquish worked there from 2012 - 2015. LinkedIn link below

https://www.linkedin.com/in/fatima-k-a403a6/

[Wideload]

How to proceed?

I have a loan for a single tax year that has been under HMRC investigation for approx 18 months - with no recent communication.

I would like to have closure on both paying any outstanding tax and eliminating the loan.

I can afford to pay my estimated tax bill but would struggle to repay the loan.

Is it best for me to settle with HMRC for the tax yer the loan was incurred or pay the Loan Charge (I think I have read on previous posts that if the loan is under investigation then this will continue even if I have paid the Loan Charge) - the latter would be better for me from a tax point of view.

Seen posts regarding the loan being written off - has anyone achieved this? Do I need to engage specialist help? I want to mitigate the risk of future issues with this.

As I have a single loan currently under investigation what do I need to inform HMRC about.

Many thanks

[catesby]

Despite Vanquish looking to claim they have nothing to do with AML....

The lady who calls you from Vanquish worked there from 2012 - 2015. LinkedIn link below

https://www.linkedin.com/in/fatima-k-a403a6/

...and, strangely enough, one of the current batch of PTS advisors 'helping' everyone try to resolve their liability was a New Business Executive at PCL during 2015. Just one big happy family, doing their level best during our crisis. Aren't we fortunate ?

[dvmwj]

Me Too

But not with the #!!

Joined the forum today as this looks like the biggest source of info for affected contractors. Like others, the emails have arrived and I'm about to embark on the data collection to see what my exposure is.

I'll keep you all abreast of my progress and look forward to your updates also.

Best of luck to you all.

[jazzyg]

There really is no great secret here.

As indicated above, if the loans are made to you from a lender and you settle on terms that say it is income, then add the loans to your other income for that year the money was paid, calculate the tax according to the various band limits and deduct what has been paid.

The difference is what you owe.

Add interest which from early 2009 has been around 3% +/- little bit.

Where life becomes more difficult is if your Own Co was in the loop. In other words the cash flow was:

end client > agency > promoter intermediary > Own Co > promoter > lender > you

Arguably Own Co (which probably paid a small salary to you?) was liable to PAYE on the amount paid to promoter.

This is where the rather scary percentages you mention are coming from.

You need to be very careful here about which legal entity had legal and beneficial entitlement to money at what time.

What if the flow was

End Client -> Agency ->LTD Co -> Promotor (AML)->AML loan to me