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HM Accountax Ltd
HM Accountax Ltd, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 175
Experience:  I am an accountancy professional with more than10 years hand on experience in audit, accountancy and tax affairs.
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I just wanted to ask a question about the loan charge. I was

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I just wanted to ask a question about the loan charge. I was with an umbrella company for 8 months in 208/2019. I have received a generic letter about 'Changes to the Loan Charge and what this means to you'. However, I have had numerous conversations with my umbrella who has sent me various statements that I was not or participated in a loan scheme. They have sent me various emails to that effect.
JA: Have you talked to a tax professional about this?
Customer: No
JA: Anything else you want the Accountant to know before I connect you?
Customer: I am not sure to be honest, apart from was I on a loan scheme or not, as I have no idea because the umbrella company say they are not and would support me and provide evidence of this, if I have to deal with regards ***** ***** I have spoken with HMRC to stated it was a generic letter and I have no enquiry against me. But I do have to completed an amended self assessment with 'Benefits of Kind' as I had received an amended P45 from the umbrella company.
Customer: replied 9 days ago.
This is one of the responses I received......Good Afternoon Raymond,Thank you for your email.I can confirm that you have not been paid through a disguised remuneration loan with ourselves. All payments you have received are correct and compliant and we only provide payment structures designed by QC’s/Barristers from the largest tax chambers in London to make sure our structures are fully compliant.Elite has never had an HMRC investigation as we are proactive on Compliance, with our legal opinions refreshed regularly. We are based in Liverpool, so there is no offshore tax haven element in anything we offer.Please find attached your P45 in order for you to complete and submit your Self Assessment Tax Return.HMRC requires you to submit online, so click here for you to start the process. The guidance notes on the website are very clear and helpful, so please read them before you start. For example, if you have not previously submitted a tax return and do not have a Unique Taxpayer Reference (UTR) which you will need, it explains how to obtain one.Please input the amount of £119.55 in “Benefits from your Employment” as this is the Benefit in Kind amount that must be included as explained by my colleague, Alexandra.Please note that you will also be required to include other earnings outside of your employment with us, i.e. rent, dividends etc.If you require any further clarification in relation to what we paid to you, please do not hesitate to get in contact. Please note that we are not allowed to give you any advice in relation to what you include as earnings from other employment or any other payments you have received.

Hi,

I am an advisor at Just Answer and i am happy to assist you.

I'll suggest that you request a letter from Umbrella confirming that you were not included in loan agreement and if HMRC looks into it and they are going to support you.

Regards

Muhammad

Customer: replied 9 days ago.
This is another responses....
Good Morning Raymond,I hope you’re well.I am contacting in relation to your recent HMRC letter regarding “Changes to the loan charge following the independent review”. It is a standard letter and it has been sent to literally hundreds of thousand of contractors that have been employed by an umbrella company.In relation to your employment with Elite, there is no need whatsoever to act upon the letter and reply as the loan charge rules do not apply to the payments you received from us. Obviously, I cannot provide you with any advice in relation to any relevant employment with another umbrella.The letter is merely advising you of changes to the loan charge rules following an independent review and then going on to explain what you should do if the rules do apply to payments made to you.Whilst we appreciate that the letter might have been worrying to receive, it might put you at ease to know that the loan charge rules are still under review and are being challenged through the courts. Therefore, further guidance and rule changes are not expected to reach completion until much later in the year.In the meantime, HMRC will continue to routinely review the tax affairs of individuals each year. Your use of an umbrella company will mean they are particularly interested in understanding how you have been paid as there are many unprofessional and non-complaint umbrella employers.Whilst we do very often challenge and question most HMRC letters, as a responsible umbrella employer, we fully support the approach taken by HMRC to investigate wrongdoing by umbrellas who provide tax avoidance schemes that are not compliant and expose contractors to unnecessary claims by HMRC.If you have already submitted your tax return for the year of 2018/2019, we strongly advise you to awaiting further correspondence from HMRC relating to it as you might not actually receive any more.If you do receive any letters that specifically relate to your time with Elite, you must send them to us without any delay and not deal directly with HMRC until we have reviewed them and provided you with a suggested reply, if one is actually needed.Also, do not instruct an accountant to advise you as, despite what they might say to you, very few are experts in the area of tax that we specialise in. Through our in-house solicitor and specialist QC barrister, we will provide you with all the advice and assistance that you need in relation to your time at Elite.As always, if you have any questions about the above or any other element of our services, please do not hesitate to get in touch.
Customer: replied 9 days ago.
Okay, is that all I have to do?
Customer: replied 9 days ago.
Would the email response suffice?
Customer: replied 9 days ago.
Or would this have to be a letter, as I have an email already?

I'll suggest that you request them to provide the written advice and assistance in your relation to your time at Elite (Letterhead).

Customer: replied 9 days ago.
Okay, Thanks for that.

My pleasure

HM Accountax Ltd and other Tax Specialists are ready to help you
Customer: replied 5 days ago.
Hello I would like to ask a further question.
Hi, I offered a phone call if you want want we can discuss over the phone or you can setup new question request for me.
Regards
Customer: replied 3 days ago.
I would possiby need you to look at my documents, and give you some information about my proposed actions and need your professional tax advice. This would take more than a phone call but an email/phone call.
Customer: replied 3 days ago.
Can you send an overall offer for you to evaluate my documents etc.
Customer: replied 3 days ago.
If I may, please can you look at this website which is what I want you to do.. https://lcjreu.org.uk/taxguide.html please refer to the section which states 'If you do not have a Tax Advisor' and respond back to me.
Customer: replied 3 days ago.
Basically I am not even sure if I was on any scheme, so my contract with the umbrella needs to be looked at. Also the response from the umbrella in respect of my email to them. I also have emails to show you and documents, but I need to know what stance to take, so please read the email link I sent as stated above.
Customer: replied 3 days ago.
How long is the phone call, as I can see it is £30, does this include sending you documents via this page, you looking at them and providing professional advice on my stance?
Customer: replied 3 days ago.
I have another accountant if I do not hear from you, so please answer either way. Thanks.

Hi,

Sorry, i was in meeting.

We can discuss this over the phone and i'll send you quote for work. If you are happy we'll proceed with it.

Regards

HM Accountax

Customer: replied 3 days ago.
But do I have to pay £30 for a phone call and then additional for the work. Is is not possible to know the overall amount?
Customer: replied 3 days ago.
Otherwise I would be paying for a phone call to say you can do it or not!
Customer: replied 3 days ago.
I hope you don't mind me asking for an overall price, as I have advised what needs to be done.
Customer: replied 3 days ago.
I belong to the Loan Charge Action Group who have been advised by a QC on a course of action.

Hi,

Thanks for the update.

I'll suggest stick to LCAG as they specialise in it.

Regards

HM accountax

Customer: replied 3 days ago.
Okay will do. Thanks

Thanks, ***** ***** the answer and i'll close the ticket