Pembroke PAYE Umbrella closing down

[louisvltd]

Newbie (in all senses)

Hey there,

Newbie to this forum (let alone thread) but came across it after Googling Pembroke and receiving a letter from HMRC and having my (now) accountants tell me that I need to complete a self assessment for the 17/18 tax year.

I used Pembroke for five months in my first real stint as a freelancer, safe to say I was wet behind the ears then... I thought the whole point of using an umbrella was to not have to go through the rigmarole of setting yourself up as a LTD and it was more effective for short term jobs e.g. Five months worth of work.

Apparently I too have received loans that I haven't paid any income tax on... Does anyone know if I can take any legal action against Pembroke? I used them to specifically avoid having to do anything like a self-assessment return.

Am I just being naive?

[piebaps]

Frankly yes.

For starters, HMRC are in the process of winding up the company. You'd be at the back of the queue.

If you have engaged these guys to perform a service and they haven't performed it, then you may have a breach of the contract you signed. You'd need to read the contract though and see what exactly it was you agreed to, then demonstrate that they hadn't done it.

NB There may be some gap between what a salesman told you was happening and what you actually signed (and possibly even what actually happened after you signed).

Seek advice and don't trust anonymous people off the web!!

[Adam8468]

Pembroke Payment Services Ltd

Anyone else previously contracted through Pembroke PAYE?

They appear to have gone off the radar and are completely closing down. I noticed this after recieving a letter from HMRC asking me to complete a self-assesment for 17/18 which is all rather worrying.

Possible loan charge connections etc. etc.

Keen to hear if anyone else is hearing from HMRC and has been with Pembroke PAYE previously.

Thanks,

Hiya,

I seem to have exactly the same experience as you!

I've been in contact with HMRC and at first they didnt understand why I had been asked to complete a self assessment. I then found an article (after a long time of searching) and have found the same information; that its to do with the 'loan' element. The article said that the Government had closed a 'loop hole' regarding loan payments and going after everyone for the past 20 years. On a side not, its amazing they can do this for genuine people but not multi million and billion pound companies exploiting every loop hole and making morally and legally questionable action.

Anyway, after I conpleted my tax return there was NOWHERE to complete anything regarding the loan element. I spoke to a local tax adviser and they pointed me to where I should declare it. However after talking to HMRC (Mon 16 Dec 19) they then added the loan amount to a different section. I have now gone from a £130 refund (which I received after submitting 17 Nov 19) to now owing £1,200.

I have found my loan agreement with Pembroke Payment Services and will be contacting them within 72 hours (this is the time it takes for them to look at the change apparently), it clearly states that 'The Employer shall lend the Principal Sum to the Emplyee'. I will mention this to HMRC as to me its Pembokes responsibility to collect this money.

Feel free to message me.

Adam

[Ian Richardson GT Leeds]

Hiya,

I seem to have exactly the same experience as you!

I've been in contact with HMRC and at first they didnt understand why I had been asked to complete a self assessment. I then found an article (after a long time of searching) and have found the same information; that its to do with the 'loan' element. The article said that the Government had closed a 'loop hole' regarding loan payments and going after everyone for the past 20 years. On a side not, its amazing they can do this for genuine people but not multi million and billion pound companies exploiting every loop hole and making morally and legally questionable action.

Anyway, after I conpleted my tax return there was NOWHERE to complete anything regarding the loan element. I spoke to a local tax adviser and they pointed me to where I should declare it. However after talking to HMRC (Mon 16 Dec 19) they then added the loan amount to a different section. I have now gone from a £130 refund (which I received after submitting 17 Nov 19) to now owing £1,200.

I have found my loan agreement with Pembroke Payment Services and will be contacting them within 72 hours (this is the time it takes for them to look at the change apparently), it clearly states that 'The Employer shall lend the Principal Sum to the Emplyee'. I will mention this to HMRC as to me its Pembokes responsibility to collect this money.

Feel free to message me.

Adam

Adam - I'm the liquidator of Pembroke

Contact details either [email protected] or [email protected]

Regards

[cojak]

Adam - I'm the liquidator of Pembroke

Contact details either [email protected] or [email protected]

Regards

I will allow this post through without amendment.

[AnthonyB]

Just looking at the HMRC response yesterday

Government to take new actions on loan schemes following Morse review - GOV.UK

And wondering if it impacts me.

As I had these loans 17/18 and 18/19 I can't see that it impacts me at all.

Still dragging my feet in the hope the situation improves. I have to put a tax return in mid January which I will do and disclose my loan in the white space.

The sums are not substantial and having atleast three years to pay them back shouldn't be the biggest problem.

I have concerns about Pembroke trying to claw the loans back but surely the FCA would view them as mis-sold and prevent that. Also, is a loan still outstanding of it was made and then the organisation is no longer trading?

So in my magical mind where all news is good news, the loan was valid, just the company is no longer standing to retrieve it...

[AnthonyB]

Adam - I'm the liquidator of Pembroke

Contact details either [email protected] or [email protected]

Regards

Hi Richard,

I would have concerns about discussing the situation with you. Surely your goal is to get as much money back in for Pembroke/HMRC as possible. Obviously that's bad news for the rest of us. Can you tell us anything about the situation? Are you trying to claw back loans? Do you view them as something you can claw back? If so, will you be trying to do this with everyone? When can we expect to receive communications from you?

[webberg]

Just looking at the HMRC response yesterday

Government to take new actions on loan schemes following Morse review - GOV.UK

And wondering if it impacts me.

As I had these loans 17/18 and 18/19 I can't see that it impacts me at all.

Still dragging my feet in the hope the situation improves. I have to put a tax return in mid January which I will do and disclose my loan in the white space.

The sums are not substantial and having atleast three years to pay them back shouldn't be the biggest problem.

I have concerns about Pembroke trying to claw the loans back but surely the FCA would view them as mis-sold and prevent that. Also, is a loan still outstanding of it was made and then the organisation is no longer trading?

So in my magical mind where all news is good news, the loan was valid, just the company is no longer standing to retrieve it...

Go and get advice. I fear that you are misdirecting yourself and if you carry on this way, you will have an unpleasant shock.

[NeedTheSunshine]

Just looking at the HMRC response yesterday

Government to take new actions on loan schemes following Morse review - GOV.UK

And wondering if it impacts me.

As I had these loans 17/18 and 18/19 I can't see that it impacts me at all.

Still dragging my feet in the hope the situation improves. I have to put a tax return in mid January which I will do and disclose my loan in the white space.

The sums are not substantial and having atleast three years to pay them back shouldn't be the biggest problem.

I have concerns about Pembroke trying to claw the loans back but surely the FCA would view them as mis-sold and prevent that. Also, is a loan still outstanding of it was made and then the organisation is no longer trading?

So in my magical mind where all news is good news, the loan was valid, just the company is no longer standing to retrieve it...

I think you need to read the report and get professional advice.

[AnthonyB]

I have sought professional advice and there was no strong steer. I was advised to declare loans in the free text box but quote the company that stated there was no third party involved so I was not in scope of the loan charge.

From reading the most recent report, if I am impacted I don't see that it improves my situation anymore.

I understand that there is now more information out there on Pembroke so maybe it's worth following up. I will do that.

Thanks.