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IQ Loan

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    IQ Loan

    Hi I've received a letter from the Trust Helpline. I was part of one of the remuneration schemes for contractors. They want me to pay for 5% of the value of a loan to write the loan off. I am a bit confused, as if HMRC says the loan is actually salary, then why would I need to pay any of this?

    Email is pasted below and link to the whole explanation is here. Thanks in advance for helping

    Uploadfiles.io - Deeds Information Sheet.pdf

    You previously let us know that you hadn't decided how to respond to the 2019 Loan Charge legislation. The deadline is upon us and your loans are still outstanding. This means that at some future date, HMRC might argue that inheritance tax is due, the loans could become subject to interest, or repayment could be demanded. Please note that this statement is not a demand for repayment; it merely draws to your attention that it could happen. Many of those contacting us want the reassurance that repayment can never be demanded. If that applies to you, please choose option (c) below.

    With regards to your outstanding loans, your trustees suggest you choose from the following three options.

    (a) Repay the loans in full. This is unlikely to be attractive to many, since the trustees cannot commit to making a distribution back to those repaying their loans.

    (b) Do nothing. This will leave your loans outstanding, which means HMRC might argue that inheritance tax is due, the loans could be subject to interest in future, or repayment could be demanded.

    (c) Ask the trustees to write off the loans. The attached help sheet explains how this works. This option has been very popular because the costs are low compared to the alternatives. You should act soon if you want to take advantage of it. The trustees have promised to keep this option open until 15th March 2019.

    We’ve attached an information sheet that explains how the write-off works and the costs involved. To proceed, you’ll need to send an email (or forward this one) to [email protected], quoting reference XXX. DOR Resolutions Limited is an Isle of Man company run by representatives of Baker Tilly, an international accounting firm.

    DOR Resolutions is increasingly busy with requests due to the pressure HMRC has placed on taxpayers to settle. If you act now, you will have the best chance that the necessary deeds will be sent for signature promptly.

    Yours sincerely,
    Trust Help Line

    #2
    The search facility will assist you, although a search on "Trust Helpline" may overwhelm you with results!!

    Try here to start https://www.contractoruk.com/forums/...mail-help.html

    Comment


      #3
      Originally posted by mistertach View Post
      (b) Do nothing. This will leave your loans outstanding, which means HMRC might argue that inheritance tax is due, the loans could be subject to interest in future, or repayment could be demanded.
      I thought the whole point of a "Non Secured Trust Loan" was that it could never be 'demanded' back?

      Comment


        #4
        Originally posted by mistertach View Post
        [email protected][/email], quoting reference XXX. DOR Resolutions Limited is an Isle of Man company run by representatives of Baker Tilly, an international accounting firm.

        DOR Resolutions is increasingly busy with requests due to the pressure HMRC has placed on taxpayers to settle. If you act now, you will have the best chance that the necessary deeds will be sent for signature promptly.
        DOR Resolutions Limited was set up in the Isle of Man in May 2018 and has no visible web presence. "run by" reps of Baker Tilly is curious wording too. There's an old expression involving a bargepole here!!

        Comment


          #5
          Originally posted by here4beer View Post
          I thought the whole point of a "Non Secured Trust Loan" was that it could never be 'demanded' back?
          Why should there be a link between "security" - or lack thereof - and repayment?

          A loan agreement has a list of minimum requirements in order to be a loan agreement.

          I'm not a lawyer but I suggest that a repayment date and value is pretty crucial and high up on the list of requirements.
          Best Forum Adviser & Forum Personality of the Year 2018.

          (No, me neither).

          Comment


            #6
            Originally posted by webberg View Post
            Why should there be a link between "security" - or lack thereof - and repayment?

            A loan agreement has a list of minimum requirements in order to be a loan agreement.

            I'm not a lawyer but I suggest that a repayment date and value is pretty crucial and high up on the list of requirements.
            A bank loan, which shows up on your personal credit score (secured or not) where you've agreed loan amount, interest, payments, time, etc. Fully enforceable, I accept that.

            But - here it comes, The Trust loan is sold/promised as not showing on your credit file, unsecured, and no payback final date. You are only ever asked to repay, not demanded. You are then expected to decline their option to repay, "now isn't a good time for me". It's apparently a "fiduciary relationship", unlike a bank. From my personal experience, I regrettably did 0% research into it, If i had, I'd never have joined the scheme. The promoter says (copied from google):

            The trustee manages the trust's assets, a significant responsibility. The trustee's fiduciary duties include a duty of loyalty, a duty of prudence, and subsidiary duties. The duty of loyalty requires that the trustee administer the trust solely in the interest of the beneficiaries

            I'm still going to (after settling) devote my life to getting the loan removed however.

            Comment

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