A letter you weren’t expecting and probably didn’t think was still possible

Next steps:

What this demand is actually about 

In broad terms, West 28th Street demands usually involve:

• historic contractor loan or Employee Benefit Trust (EBT) arrangements 
• loans alleged to remain outstanding 
• a third party claiming to have acquired those loans by assignment

Many people previously participated in contractor loan or Employee Benefit Trust arrangements, often more than a decade ago. These structures were widely used by contractors in sectors such as IT, engineering and the NHS, and were often introduced through intermediaries or tax advisers who promoted these schemes as a means of reducing tax liabilities.   

While the tax treatment of those arrangements has already been addressed with HMRC, what you are now facing is different, because West 28th Street is not HMRC and is not the original lender. West 28th Street claims to have acquired the alleged loan balances by assignment and is now seeking repayment directly from individuals. 

Also, it is important to understand that a letter of demand is not a court judgment, and the fact that a claim is being asserted does not mean it will ultimately succeed.  There may be valid reasons to challenge or oppose the demand.  

Is there any basis to avoid paying a West 28 loan repayment demand? 

Similar loan repayment demands have been made in the past, under different company names. Those attempts raised similar legal questions and, in most cases, were promptly resisted and did not progress beyond the early stages of litigation. 

The revival of claims following assignment to West 28 related debt recovery companies does not necessarily resolve the underlying legal concerns. Individuals facing a West 28 loan claim or debt recovery demand may have potential defences. 

These can include issues relating to: 

• enforceability of the loan agreement
• validity of the assignment
• limitation
• adequacy of documentation and evidence
• prior enforcement history 

Whether any of those apply depends on the detail. That is why early, informed legal advice is important. 

If you’ve received a demand and are unsure what to do next, call us at +44 (0) 20 3691 2072 or submit an online enquiry. 

Why Greenwoods?

We understand how unsettling it must be to receive a West 28th Street legal demand out of the blue, particularly where it relates to arrangements entered into many years ago and which you may have thought were long behind you. 

We are a specialist commercial disputes team with extensive experience advising on complex, long-running disputes arising out of historic tax planning, contractor loan and remuneration structures. These claims often involve incomplete documentation, revived enforcement attempts and the need for a calm, proportionate and coordinated response across large numbers of affected individuals. 

Our Disputes team is led by Huw Wallis, Head of Disputes, and supported by Partner, Euan Palmer, who has recent experience successfully concluding large‑scale group litigation against HMRC on behalf of more than 80 individuals. Together, they combine senior strategic oversight with hands‑on management of complex factual and legal issues. 

We are used to acting where: 

• claims surface many years after the original arrangements
• rights have been assigned, or enforcement revived
• multiple individuals are affected, but positions differ
• a proportionate, coordinated strategy is required 

Clients who work with our Disputes team often describe the experience in these terms: 

“The most supportive solicitor team I have ever worked with.”
“Pragmatic, responsive and genuinely sensitive to the requirements of clients.”
“Huw and the team show real attention to detail and emotional intelligence, alongside high‑quality strategic advice.” 

Our focus is not on alarmism or assumptions. It is on helping you understand where you stand legally and supporting you through what can otherwise feel like an overwhelming situation. 

Acting together where it makes sense 

Many West 28th Street loan demands are issued at scale, often to hundreds or thousands of individuals at the same time. While everyone’s position needs to be assessed on its own facts, there are often real advantages in identifying shared issues and approaching these claims in a coordinated and cost-effective way. 

Where appropriate, we help individuals act together rather than in isolation. This allows common issues to be identified, strategy to be aligned, and costs to be managed proportionately – while still advising each person on their own specific position. 

In practice, this can involve establishing a Management Board structure, where representatives of affected individuals help shape overall strategy, supported by our disputes team. This is not a one‑size‑fits‑all approach, and it is not right in every case – but where it is appropriate, it can be a practical and effective way of dealing with large‑scale claims calmly and efficiently. 

Clients often tell us that knowing they are not dealing with the situation alone is one of the most reassuring aspects of this approach. 

If you know others who have received similar demands and are unsure what to do, you are very welcome to share our details with them. Many people first contact us after speaking to someone else in the same position, and we are always happy to have an initial conversation to explain how we can help. 

How it works 

After the initial call or online enquiry, we make it straightforward to share what we need through a secure client portal. Allowing us to assess the position efficiently and advise on next steps.