AML 2019 Loan Charge

[piebaps]

I am interested to know how to tell the difference between a rogue adviser and a proper adviser?

Good question. There's no easy way. Here's my thoughts

Do they have a website on which they name their staff and provide bios of qualifications etc. Many reputable firms do.

Can I easily identify who it is I'm actually doing business with?

Are they in country or in another jurisdiction?

Are they offering a saving to me?

Are they a member of a professional body associated with tax advice? A marketing qualification for example would send me running.

Have they been recommended to me by someone I trust implicitly?

[jrock]

Do we have any people who had used AML but had limited company in place as well.This is what AML sold as Split Planning?

I was with AML firstly on the EBT scheme, the PBT then COBT - Split contracts solution. What a solution that turned out to be !

The question seems to be answered already here on this forum that no matter what naming convention AML used, the loans are to be taxed by HMRC! Can anyone shed any light if there are any varying calculations of tax due for the different types of AML schemes!

While I used the Split contracts solution I used ICS accounting services as my accountants. They also assured me at the time this was water tight. Seems like scheme providers and various accountancy firms have got away with this too easy.

[falling apart]

Has anyone looked into the Loan Charge Action Group? Is this the same as what Big Group is trying to do?

[cojak]

How do you DM someone on here? Thanks.

You need 6 posts before PM rights are given, Admin has been ask to waive this for you.

[LOL17]

I received my email from Knox & SP Management yesterday (24th Apr 2018) as well as duplicates from both today.

Firstly I just wanted to thank everyone who has shared their experiences on this post as it's been really helpful and supportive knowing that we're not alone. This is a potentially life changing scenario for some.

I'm useless with 'finance speak' and even more so with 'law speak' but if I have understood the situation correctly:

1. I paid [Management Company] my monthly wages.
2. [Management Company] paid me back my wages minus taxes as a loan payment.
3. HMRC declares that all loans in this scheme now have to be settled.
4. [Management Company] then offers a deal whereby we pay off this loan (which was our money to begin with).

I've grossly simplified my understanding of this situation but if this is correct then this... is... insane...

Again if I'm understand correct, from reading this thread it sounds like the best option is to settle with HMRC and pay the taxes on the loan amount (35%?).

My situation is that I used this scheme between Jun 2016 - Mar 2017 and received loan payments totalling £38k. Does this mean I am facing a potential charge of £13300 (plus penalties plus interest)? Is that correct?

What scares me though is the example scenario provided by Knox:



In this scenario the contractor has to return the full loan amount.

What's the deal here?

The way it worked when I used AML was that I sent my time sheet to AML. AML then invoiced the company I contracted through. That company (not owned by me nor was I a director or shareholder) paid the money received from the client for my services (oh la la) to AML and then I received a salary (minimum wage) and Knox House made a loan payment for the rest.

HMRC are not asking you to repay the loans. HMRC are saying the loans received are taxable income and you should pay income tax on that income. If you register your interest to settle and then settle HMRC will calculate the tax owed based on the tax years you received the loans in. If you do nothing then HMRC will apply the loan charge in April 2019 which means they will lump all your loans into a single tax year. This could result in some of the loan income being taxed at the additional rate, losing your personal allowance, and tapering. In other words it will be more expensive. You could repay the loans but that would be even more expensive and won't necessarily make HMRC go away.

That's my understanding of it but I will caveat my response by saying that I'm an engineer not an accountant or tax advisor.

I would recommend contacting Phil @ dswtres and/or WTT. I can honestly say that after speaking with them and the debt charity Step Change I slept like a log for the first time since receiving those emails from AML.

[wattsy]

Would now be a good time to pay an outstanding APN.

My thinking is if the APN is paid now it keeps the money in a “still in dispute” status in case by some miracle AML win. Whereas settlement/Loan charge the money is 100% gone.
Also it takes the APN loan years out of the Loan charge Tax return maybe keeping total earnings in a lower tax band……is this correct?

I am aware Paid APN’s are not settlement but interested how they will be handled on the Loan Charge – any thoughts?

Kind regards,

[Runster]

Is it possible to confirm whether anyone who is CURRENTLY still using AML / SmartPay / SP Management etc. has received the emails regarding the 2019 Loan Charge Legislation / CLSO ?

From what I have read from previous posts on this thread it appears that only those who were previously with AML / SmartPay / SP Management etc. but no longer with them, have received the emails.

A friend of mine who is currently still using AML's solution (and has consistently used AML since 2011) has NOT received any emails from AML and Knox House Trust (or associated companies) re: 2019 Loan Charge Legislation / CLSO. Personally, I have not used them since Sept. 2016 and I have received the emails.

My trust of AML / SmartPay / SP Management etc. has gone so can't help being suspicious.
Are they throwing their previous clients (i.e. us) under the bus?

Can anyone comment on this please?

I am still with SP Management, and I got the emails. Advise your friend not to submit any more timesheets to SPM and go Ltd or via a cooperative umbrella - WTT partner with a coop - see their website.

[Loan Ranger]

My thinking is if the APN is paid now it keeps the money in a “still in dispute” status in case by some miracle AML win. Whereas settlement/Loan charge the money is 100% gone.
Also it takes the APN loan years out of the Loan charge Tax return maybe keeping total earnings in a lower tax band……is this correct?

I am aware Paid APN’s are not settlement but interested how they will be handled on the Loan Charge – any thoughts?

Kind regards,

You'll still have to pay the loan charge, but paid APNs are treated as a credit against it.

[Loan Ranger]

Simple case of AML not wanting to scare their current clients away, who they are still making money from, before they legally have to.

Surely only unscrupulous cowboys would do this?

[THISISWRONG]

Surely only unscrupulous cowboys would do this?

Yes, one advisor I spoke with described AML as criminals!
My accountant/advisor who got me in this mess has told me that his contact at AML is still pushing him to get clients into schemes even though they know it will fail. The sales person at AML is still saying the planning isn’t caught but when you go higher up the ladder I’m AML, they say ‘it will be caught and they will have new planning to NAVIGATE this when it is needed’.

Clearly the sales people are fed a line my management and encouraged to keep selling as they aren’t liable!!!! It stinks.

If you dig into it, it looks like AML and linked to Mr Bowerman and Michelle Mone and have moved their company to panama Michelle Mone's partner moves his tax avoidance business to Panama | HeraldScotland

It stinks and these are the people that should be going to jail