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Received a letter from West 28th Street about an alleged loan?

A letter you weren’t expecting - and one that may be the first step before a formal demand is served.

Our team is here to help, call +44 (0)20 3691 2072 or complete our online enquiry form.

 

We are monitoring this developing situation and bringing together individuals who have received similar correspondence. 

We are aware of a growing number of individuals who have received letters from West 28th Street (via Trethowans), including “Corrective Annual Statements” and notices of assignment.

Importantly, the letters issued to date state that they are not requests or demands for payment, and in most cases no immediate response is required.

Our current approach is to monitor developments and build a clearer picture across affected individuals before any coordinated response becomes necessary.

If you have received this type of correspondence, you can register your details with us so that we can keep you updated as the position evolves.
 

Please call +44 (0) 20 3691 2072 or submit an online enquiry. 

Prefer a short explanation instead of reading everything?

We’ve recorded a brief video explaining West 28th Street’s demands, why they are being sent now, and the key points individuals should understand before responding. We can help individuals understand what this demand really means, whether it can be challenged, and what realistic options are available based on the facts of their position.

Our team is here to help, call +44 (0)20 3691 2072 or complete our online enquiry form.

Next steps:

What is this is about

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

historic contractor loan, loan-based remuneration schemes or Employee Benefit Trust (EBT) arrangements 
• sums alleged to remain outstanding under those arrangements; and
• a third party claiming to have acquired those alleged loans by assignment.

Many individuals participated in contractor loan or Employee Benefit Trust arrangements, often more than a decade ago. These structures were widely used across sectors such as IT, engineering and the NHS, and were frequently introduced through intermediaries or tax advisers. They are sometimes referred to as loan-based remuneration schemes, and HMRC have referenced them as “disguised remuneration” schemes, and imposed a “loan charge”.

While the tax treatment of those arrangements has already been addressed with HMRC in many cases, the current situation is different. West 28th Street is not HMRC and is not the original lender. It claims to have acquired certain alleged loan balances by assignment.

Based on the documentation we have seen to date, the letters issued are not demands for payment. Instead, they appear to be a preliminary step, including the provision of “Corrective Annual Statements”, which may relate to compliance with the Consumer Credit Act 1974.

This suggests that further steps, such as a formal demand, may be contemplated but have not yet been taken.

 

What this means in practice

At this stage, the correspondence does not require a response and does not give rise to any immediate obligation to make payment.

If the position develops and further steps are taken, the situation may need to be reassessed at that time.

What issues may arise if this progresses

If formal demands are made in the future, a number of issues may become relevant depending on the circumstances, including:

  • compliance by the “lender” with legal obligations regarding any “loan” to a consumer, and consequently the enforceability of any underlying arrangements;
  • whether any alleged assignment is valid and effective;
  • limitation (including whether any claim is brought too late);
  • the adequacy of the available documentation and evidence; and
  • the extent to which any previous enforcement attempts have progressed.

Whether any of these issues arise will depend on the detail of individual circumstances and the available documentation.

Our current approach

At this stage, our focus is on monitoring developments and building a clear picture across those affected.

If and when further action is taken, it may then be appropriate to assess individual positions and consider whether a coordinated approach is beneficial.

How Greenwoods is approaching this issue

At this stage, Greenwoods is monitoring this situation and bringing together individuals who have received similar correspondence.

While each person’s position will ultimately depend on their individual circumstances and documentation, there can be clear advantages in identifying shared issues and building a broader understanding across those affected.

This helps to ensure that, if further steps are taken, any response can be approached in a coordinated and cost‑effective way where appropriate.

Where formal advice becomes necessary – for example, if a demand is made or enforcement action is taken – our role would typically involve assessing the legal position in light of the available documentation, identifying any common themes, and considering how best to respond both individually and, where relevant, collectively.

We are a commercial disputes team with extensive experience in complex and tax‑related claims, acting for both claimants and defendants. We are familiar with the way historic investment and remuneration structures were designed and promoted, and how recovery claims may later be pursued.

Our approach is practical and focused on what ultimately matters: understanding the legal position, identifying risk, and responding appropriately if the situation develops.

Why Greenwoods?

We recognise that receiving unexpected correspondence relating to historic arrangements can be concerning, particularly where those arrangements date back many years.

We are a specialist commercial disputes team with extensive experience in complex, long‑running matters arising out of historic tax planning, contractor loan and remuneration structures. These situations often involve incomplete documentation, revived claims or assignments, and the need for a measured and proportionate response.

Our Disputes team is led by Huw Wallis, Head of Disputes, and supported by Partner, Euan Palmer, who has recent experience in large‑scale group litigation, including acting for more than 80 individuals in claims involving HMRC. Together, they combine strategic oversight with detailed, hands‑on analysis of complex factual and legal issues.

We are used to acting where:

  • issues arise many years after the original arrangements;
  • rights have been assigned or enforcement is being considered;
  • multiple individuals are affected, but positions differ; and
  • a coordinated and proportionate approach may be beneficial.

Clients who have worked with our Disputes team have described 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 input.”

Our focus is on understanding the position clearly and responding appropriately if and when the situation develops.

Acting together where it makes sense 

We are aware of a growing number of individuals who have received similar correspondence relating to historic arrangements.

While each person’s position will ultimately depend on their own facts and documentation, there can be clear advantages in identifying common issues and building a broader understanding across those affected.

If further steps are taken, it may then be appropriate to consider whether a coordinated approach would be beneficial. This can help ensure that any response is proportionate, strategically aligned, and cost‑effective where common issues arise.

Where appropriate, this may involve individuals working together rather than in isolation. This can assist in identifying shared themes, aligning strategy, and managing costs efficiently, while still recognising that individual circumstances may differ.

In some situations, this type of approach may include establishing a representative or group structure to help inform overall strategy, supported by our disputes team. This is not a one‑size‑fits‑all approach, but can be an effective way of dealing with issues that affect multiple individuals.

Many individuals find reassurance in knowing that others are in a similar position and that the situation is being considered collectively rather than in isolation.

If you are aware of others who have received similar correspondence, you are welcome to share our details with them. Understanding the wider picture helps ensure that, if the position develops, any response is informed, consistent and efficient.

How it works

At this stage, you can register your details with us so that we can keep you informed as the situation develops and build a clearer picture across those affected.

If further action becomes necessary, we would then set out next steps, including how information can be shared securely and how any coordinated or individual approach may operate in practice.

If you would prefer us to review your individual position now, we can do so, but this would require formal engagement as a client.

FAQs

At this stage, we are monitoring the situation and bringing together individuals who have received similar correspondence, in order to build a clearer picture of the issues arising.

If further steps are taken, for example, if a formal demand is issued, it may then be appropriate for us to assess individual positions, including reviewing documentation and identifying any issues that may arise in response.

Where relevant, we would also consider whether there are advantages in a coordinated approach for those affected, alongside any individual considerations.

For now, our focus is on keeping individuals informed and ensuring that, if the position develops, any next steps can be taken in an informed, proportionate and efficient way.
 

 

Based on the correspondence we have seen so far, there is no immediate requirement to make any payment.

The letters issued to date expressly state that they are not demands for payment. As such, they do not in themselves create any obligation to pay.

If the position develops and a formal demand is made, it may then be necessary to consider the legal position, including whether any claim is enforceable based on the specific facts and documentation.

At this stage, personal liability is being asserted in general terms, but it is not something that arises automatically and does not need to be determined at this point.

Based on the correspondence issued so far, no formal claim or demand has been made, so there is no immediate need to reach conclusions on enforceability.

If the position develops and further steps are taken, the question of liability may then depend on a number of factors, including:

• how the original arrangements were structured;
• the documentation available;
• the effect of any assignment;
• limitation; and
• any previous enforcement history.

Whether, and to what extent, any of these issues arise will depend on the specific circumstances in each case.

At this stage, no formal demand or claim has been made, so legal proceedings are not currently in progress and no response is required.

It is possible that further steps may be taken in the future, for example if a formal demand is issued and not resolved. However, whether any legal action would be pursued, or succeed, would depend on the specific circumstances and legal position.

If the position develops, it may then be appropriate to consider the situation in more detail and decide how best to respond.

Issues relating to HMRC and any alleged loan are legally separate.

Many individuals have already resolved their tax position with HMRC in relation to these arrangements. However, the correspondence issued by West 28th Street relates to an alleged underlying loan, rather than tax.

At this stage, no formal demand has been made, so there is no need to reach a conclusion on this point.

If the position develops, the relationship between any prior HMRC settlement and the alleged loan may then need to be considered in more detail, depending on the specific circumstances.

 

Based on the correspondence issued so far, there is no requirement to respond within a specific timeframe.

The letters state that they are not requests for payment, and do not state that a response is required, so there is no immediate deadline to act.

If the position develops – for example, if a formal demand is made – any applicable time limits may then become relevant and would need to be considered at that stage.

No. Making enquiries or seeking information does not in itself trigger court action.

At this stage, no formal demand or claim has been made, and there is no requirement to take action or involve a solicitor.

If the position develops, individuals may then choose to seek advice in order to understand their position and consider how best to respond. Whether any legal proceedings are pursued will depend on the circumstances at that time.

Based on the correspondence issued so far, no immediate action is required in most cases.

The letters state that they are not demands for payment and do not require a response, so there is no need to reply at this stage.

Our current approach is to monitor the situation and wait to see whether any further steps are taken.

In the meantime, you may wish to register your details with us so that we can keep you informed as the position develops.

Based on the correspondence issued so far, there is no requirement to respond, and choosing not to reply at this stage does not put you at any immediate disadvantage.

The letters expressly state that they are not requests for payment and do not require a response.

If the position develops – for example, if a formal demand is made – it may then be appropriate to consider how best to respond at that time.

 

At this stage, we are not generally carrying out individual assessments, as no formal demand has been made and no immediate action is required.

If the position develops and it becomes appropriate to review individual circumstances, we would then explain the information required and the likely timescales for doing so.

 

Potentially, yes.

We are aware of a growing number of individuals who have received similar correspondence. While each person’s position will ultimately depend on their own circumstances, there may be advantages in understanding the position across those affected.
 

 

There is no cost to register your details with us and stay informed as the situation develops.

If it becomes appropriate to seek individual legal advice at a later stage, we would set out the likely costs clearly in advance so that you can make an informed decision.

Any costs would depend on factors such as individual circumstances and whether a coordinated approach is appropriate if multiple individuals are affected.

If further steps are taken, it may then be appropriate to consider whether a coordinated approach is beneficial. This would depend on the nature of the issues involved and the extent to which they are shared.

At this stage, our focus is on bringing together those affected and building a clear picture of the wider position.

If the position develops and you have already taken advice, it may be possible to obtain a further view at that stage.

For now, our focus is on monitoring the situation and bringing together those affected so that, if needed, any future advice can be considered in a clear and informed context.

Issues relating to HMRC and any alleged loan are legally separate.

Many individuals have already addressed their tax position with HMRC in relation to these arrangements. The correspondence from West 28th Street relates to an alleged loan rather than tax.

At this stage, no formal demand has been made, so there is no need to take any action or revisit your tax position.

If the situation develops and a coordinated approach becomes appropriate, a Management Board is one way that affected individuals may choose to organise and inform overall strategy.

This can help ensure that common issues are considered consistently, while still recognising that individual circumstances may differ.

At this stage, no such structure is in place. Our current focus is on monitoring developments and building a clearer picture across those affected, before deciding whether any coordinated approach is appropriate.

If you have access to documents relating to your arrangements, you are welcome to share these with us on a no obligation basis.

This may include the correspondence you have received, any original scheme documentation, or anything you hold that helps explain how the arrangements were entered into.

Reviewing a broader range of documents across individuals helps us build a clearer picture of the issues arising and identify any common themes.

We will treat any information shared confidentially and will let you know if anything further would be helpful.

Take control of the situation

The sooner you understand where you stand, the more options you are likely to have. 

An initial contact to discuss the demand is free and does not commit you to anything.

Our team is here to help, call +44 (0) 20 3691 2072 or complete our online enquiry form below.

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    By completing and submitting this form, you consent to Greenwoods Legal Services Limited processing your personal data to contact you in relation to your enquiry and to provide you with any other materials and information about our services that Greenwoods Legal Services Limited reasonably believes will be of interest to you. You are free to withdraw your consent at any time by emailing mailinglists@greenwoods.co.uk