5 years to pay - who can possibly benefit?

[Pebbles]

HMRC has announced that taxpayers can have 5 years to pay the loan charge. But if you look at the briefing, this is what it actually says...

"We appreciate that for some people who have used these schemes, paying the tax due will have a significant impact. Flexible payment arrangements are available to anybody who has genuine difficulty paying what they owe.

"HMRC will allow scheme users to spread their payments over 5 years if their taxable income in 2018 to 2019 is estimated to be less than £50,000, as long as they are no longer in avoidance."

Your taxable income in 2018/19 will include the full amount of loans caught by the charge. Therefore unless your income for that year and your total loans are less than £50k this "concession" is meaningless. Realistically, how many people fall into this category? Maybe this a point the LCAG may wish to publicise.

[Delendog]

HMRC has announced that taxpayers can have 5 years to pay the loan charge. But if you look at the briefing, this is what it actually says...

"We appreciate that for some people who have used these schemes, paying the tax due will have a significant impact. Flexible payment arrangements are available to anybody who has genuine difficulty paying what they owe.

"HMRC will allow scheme users to spread their payments over 5 years if their taxable income in 2018 to 2019 is estimated to be less than £50,000, as long as they are no longer in avoidance."

Your taxable income in 2018/19 will include the full amount of loans caught by the charge. Therefore unless your income for that year and your total loans are less than £50k this "concession" is meaningless. Realistically, how many people fall into this category? Maybe this a point the LCAG may wish to publicise.

If you settle the LC does not apply so you would get the 5 years - this is a clever nudge though as you would also need to settle any closed years.

I think they will also have to apply the same rule come the LC though OR they will reduce the tax take.

[webberg]

This is NOT a long period to pay the loan charge.

It is a 5 year period to pay tax if you settle before the loan charge applies.

[GreenMirror]

HMRC have been forced to do the absolute minimum they can. That they have made any "concession" at all means they are seriously worried.

However they are going to have to move alot further. 5 years TTP for all. And accept that Loan Charge cannot be retrospective.