What are the rules around "Loan", i would assuming it is legal but it needs to be paid back to company or company need to write off. If i ask umbrella company to send me a statement on the company letter head to write off the Loan this is above 10k ? assuming Umbrella Company pays the Employer NI. Will i then be obliged to pay Tax and Employee NI ? If not, what would be the impact on me as individual on my tax profile and credit scoring or will there be any other issues i need to look out ?
You have yourself ina very sketchy situation which at best is highly likley to be treatment that hmrc will say is wrong.
In summary you have signed up to some sketchy sceanrio where you have reecived funds that appear tiobe "probably" taxable whatever the person paying you may argue.
In situatins like this the onus is on you to declare income reeceived that has not been taxed.
There is a reasonably highn likleyhood the company paying you may not be around for much longer.
Note as far as hmrc are concerned there aren;t really any excuses here - all employers must hand out payslips/confirmation of pay and tax deducted and any employee not receiving payslips should immediately report employer to hmrc. Some sketchy argument that i though tax was being deducted but i did nothing to check this was the case will not wash with hmrc.
I would start by asking engager to confirm full details of whatever "scheme" they are using and ask for appropriate written clarification that as you were lead to belive (1) you were being paid under paye with al;l relevvant uk taxes being paid by your engager (2) they can confirm all monies paid to you are full and final settlement for employment services rendered and there no loans or other fancy schemes that may involve you have to pay sums back ata later date.
When you get documentation from your employer you may want to run this by hmrc proactively for them to confirm you are in the clear and have nothing to declare.
Being honest I think its highly unlikely the company that has paid you will agree you have had salary and tax deducted - they will almost certainly turn round and say no the scheme is what you agreed to when you signed up to work for us and part of the poayment is a loan which believe is probably not taxable and you probably won't have to repay to us.
There is obviously the chance this scheme is fine and hmrc will not have a problem with what has happened - beinb blunt though you have been paid salary with no tax deducted so it seems a reasonable asumption to me that you owe the tax on the earnings you have had without deduction of tax if hmrc decide to chase you arre not the engager.