Infinity Contracts - Loan Agreement - Help

[webberg]

We have posted messages to our Big Group members about the activities of the above names and their companies.

I have no idea if the loan agreements will stand up in Court but we have advised all of our clients not to respond to these people, do not reply to texts and do not call them.

If they have any case at all for claiming the loan, then we are happy to support our clients in Court.

Having the loan written off WILL create a tax liability.

Repaying the loan will NOT prevent the loan charge arising.

Paying interest on the loans proves nothing.

If you remain confused, go and get professional help.

[Doggysoft]

I have this from when they were courting me into signing up.

The payroll option IQ provide offers you maximum tax efficiency, minimum fuss whilst providing peace-of-mind that you are using a secure and compliant strategy

Some of the benefits we offer include

· Same day payments

· Employed status

· No set‐up or exit fees

· Free Public Liability Insurance

· Free Professional Indemnity Insurance

· Personal Account Manager

· Weekly or monthly payments

· Payslips showing tax and NI is taken care of by IQ

the latter is what they haven't done. It says they give you 84% which they did, but they also invoiced for VAT. Not sure whether it was paid or not but it makes their takings 36% each payslip. Where did that money go?

From what I've read, clearing the deed opens you up for IHT. Is that another 20% or 40%?

[BeeKay]

Your forum

For any BG people reading this thread.

There are many parts of the letter from DOR and their suggested actions, that we address in a communication we are preparing and which will be on our own forum later this week.

Please do not take any action before reading that.

@webberg - do you have a link to your document? Would be interested in reading as I have received the letters everyone has mentioned. Thank you ??

[BeeKay]

I got the same letter...

What did you end up doing?

Today I got this email from them: (I am currently in the process with settling to HMRC) My loans are about £1000. Any advice/help - Much Appreciate it - Thanks.

Email:

[B]Dear Mr Smith,

The Infinity Contractor Services Settlement wrote to you in April about retrospective changes in the law and the requirement to declare Infinity as a tax avoidance scheme. All of the content of that letter remains valid and if you have not already done so, you should act on it.

Permanently resolving the loan problem
Today, I am writing to you as the director of DOR Resolutions Ltd, a UK-based company. I set up DORR to help trustees in the same position as Infinity to communicate with their borrowers about the loans and to bring matters to a conclusion. My team and I will handle any enquiries you might have about the loans. It is also DORR's responsibility to help the trustees to close their trusts down.

There are several options that might be of interest to you. These are:

(a) repay the loans in full
(b) be released from up to 95% of your loans
(c) negotiate a lower payment to HMRC

The rest of this email describes these options in more detail. There is also more information on DORR's web site. If you'd like to see a statement of your loans, DORR has set up an on-line loan statement platform and you can log in here. Please keep this link private because it contains part of the key to accessing your financial information.

Repayment Options
Remember, whether you paid all your tax has no bearing on whether the loans are outstanding, even if you paid your tax a long time ago. HMRC might treat a loan as if it were income, but even so, it remains a loan. Unless you repaid your loans, which the trustee's records show that you haven't, then the loans are still outstanding.

If you're presently settling your use of contractor loans schemes with HMRC, or if you recently settled, HMRC may require you to arrange to be released from your loans. HMRC say you must do this within 30 days of reaching settlement in order to avoid a possible inheritance tax charge. This forces you into option (b) above and restricts how long you can take to pay. Whether you are settling with HMRC or not, your loans are outstanding and you still need to decide what to do about them.

Repay your loans in full
If you repay the loans in full, you will receive a deed of exclusion and debt settlement (“DOEDS”), which evidences that you no longer have any obligations to the trust(s). We do not charge a fee if you repay your loans. You can review your deed using our on-line loan statement platform. The deed gives you finality and legal certainty over your relationship with the trustees. This option is likely to be of interest if your outstanding loan is small.

Be released from your loans
The trustees are aware that not everyone will be able to repay their loans in full, and are prepared to write off (or “release”) 94% of the total. You would need to repay the remaining 6% of the loans. You can spread the repayment over three, six or twelve monthly instalments but there is 16.7% discount available if you pay all at once. The discount reflects the reduced administration costs for the trustees and means you repay only 5%, with the trustees releasing the remaining 95%.

** rewards toyur prompt agreement **

When the trustees release you from the loans, they will sign a deed of exclusion and release (“DOER”). The DOER satisfies HMRC’s requirement that those settling arrange to be released from the loans. HMRC will only require you to arrange this after reaching settlement, not before, but you can arrange it at any time. You can review your deed using our on-line loan statement platform. Once both you and the trustees have signed, your accounts will be closed, we will hand our records back to the trustees, and you will have no further obligations to the trusts.

You can still choose to obtain a DOER, even if you have not agreed a settlement with HMRC.

If you choose to be released from your loans in this way, whether in a single payment or using a repayment plan, DOR Resolutions Ltd charges an administration fee of £ 250 per trust. This covers our costs, including the legal advice we have taken, drafting your deeds and providing your statement. You pay this fee first. We do not provide tax advice, so you should consult a tax adviser before deciding what to do. We do not make payments to HMRC on your behalf.

If you do nothing, the trustees might start to charge you interest and could take legal steps to recover the debt. They could be forced by a court to do this. You might become liable for inheritance tax at a later date. This might happen on the ten-year anniversary of the establishment of the trust, or if the trust closes, for example.

Negotiate a lower payment to HMRC
There is a potential option if you can’t afford to pay. But this option is only available to those in genuine difficulty. It requires that you engage an advisor, which we will help you with. It does not require bankruptcy and means you will only have to pay your creditors, including the trust and HMRC, what you can reasonably afford to pay.

You may be in a powerful position to negotiate a lower figure with HMRC. If your adviser recommends this option to you, you should end up paying HMRC only as much as you can afford, yet still legally discharge the debt. And, you could typically have up to five years to pay. The total you would pay to discharge all your unsecured debts, including the trust loans, and all associated costs, could be substantially less than you currently owe to HMRC. This option is known as an Individual Voluntary Arrangement. It is likely to be most useful to those with low asset values and outstanding tax bills that are less than one third of the amount owed to the trust(s). You presently owe the trust(s) £1,147.11. We might still be able to help you even if this doesn't apply, but negotiating the agreement with HMRC could be harder. This option is not for the faint of heart, however, and could affect your credit rating. Your adviser will explain what it involves.

If you're worried and need help
Don't let this get you down. Support is available. The Loan Charge Action Group is a volunteer-led organisation with members just like you. Over a hundred MPs are also helping people in your situation and are taking action in Parliament. Citizen's Advice and The Samaritans can also help if HMRC's demands, and the content of this letter, are getting on top of you. We have started to donate to The Samaritans regularly.

I'd like to reassure you that although you're bound to face further costs with all this, DOR Resolutions and the trustees to whom your loans are owed are trying hard to keep these costs to a minimum and to find legal ways to reduce the impact of the retrospective loan charge legislation. That said, it's important to accept that the tax itself cannot be avoided. Don't get tempted to engage in further tax avoidance. Whatever approach you take, you need to make sure you're acting within both the letter and the spirit of the law. The three options contained in this letter all do that.

The importance of tax advice
Finally, I must stress the importance of obtaining sound, independent tax advice. DORR doesn't give tax advice and this email doesn't constitute tax advice. You're free to use any firm you choose, but Templeton Brook are familiar with the situation and have handled similar cases to yours before.

Good luck and best wishes.

<mod snip>

[webberg]

@webberg - do you have a link to your document? Would be interested in reading as I have received the letters everyone has mentioned. Thank you ??

If you are a BG member, then it's on the forum there.

If you are not, I'm unable to make it available.

You do however have my opinion. I have seen evidence that others with experience in this sector share that opinion. No guarantee it is correct of course and you may in due course be obliged to defend yourself.

[webberg]

I have this from when they were courting me into signing up.

Where did that money go?

From what I've read, clearing the deed opens you up for IHT. Is that another 20% or 40%?

Why don't you ask them where the VAT went?

Why do you think IHT would be 20% or 40%? There is a lot of material in these threads on IHT and a couple of hours research would perhaps set your mind at rest over the quantum of the charge.

[PMContractor]

Query on BG Forum ?

If you are a BG member, then it's on the forum there.

If you are not, I'm unable to make it available.

You do however have my opinion. I have seen evidence that others with experience in this sector share that opinion. No guarantee it is correct of course and you may in due course be obliged to defend yourself.

Can you provide a link to the BG Forum ? I'm very interested in the document. FWIW - I've agreed to pay HMRC, trying to get Infinity / Winchester off my back.

[webberg]

Can you provide a link to the BG Forum ? I'm very interested in the document. FWIW - I've agreed to pay HMRC, trying to get Infinity / Winchester off my back.

If you are a member of Big Group, you will have access to that forum.

If you are not, then you do not have access.

If you have settled, then Big Group is not for you. Big Group is about fighting HMRC's flawed view of schemes.

[Tarun]

Infinty

I too was with infintity

[Tarun]

I m in same boat .Now getting threatening letters from them.Do you ignore them ?