Won't the judiciary & law enforcers have their hands full around then removing the riff-raff that can longer stay in the UK due to Brex-it???
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HMRC Consultation : Tackling Disguised Remuneration
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Schemes
Originally posted by dezze View PostAs an aside, are scheme promoters still pushing loan schemes? If they are, won't the scheme users automatically be caught?Comment
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Originally posted by dezze View PostSomething to be aware of - I think someone said that the loan amounts across the years are rolled into one, and taxed as if they were all paid out together. I don't know for sure if this is 18/19 or 19/20 - others will know better. Therefore, you don't calculate the tax year by year....unless I misunderstood.
If (big IF), i did succumb to paying off the APN's, would that be it, done and dusted, end of story, no more money owed?
*note that I did have a letter through for a discovery assessment for one year but never had anything further from that year, so may at one point have another APN through but still wouldn't put the total above what I calculated as tax and NI owed.
Again, thanks for spending time to explain in simple terms for a thicket!Comment
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Originally posted by Tomo1971 View PostIf (big IF), i did succumb to paying off the APN's, would that be it, done and dusted, end of story, no more money owed?
For the 1838474th time: APN s are a payment on account of an amount of tax "due" to be assessed at a later time.
For starters, they'll come back for interest.
Seriously, if you have APN s, don't you think that the least you could do would be to do your homework? Plenty of FAQs out there.Comment
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Originally posted by DotasScandal View PostAbsolutely not.
For the 1838474th time: APN s are a payment on account of an amount of tax "due" to be assessed at a later time.
For starters, they'll come back for interest.
Seriously, if you have APN s, don't you think that the least you could do would be to do your homework? Plenty of FAQs out there.
I'm trying to get things simplified... Every time I ask the scheme questions they just come back with legality and technical speak that to be frank, confuses and doesn't answer my questions.... Pretty much like the other threads I've tried to search.Comment
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An APN is a demand for tax in dispute.
It does not settle the dispute.
It does not give you finality on your actual liability.
Paying an APN is not admitting liability.
Simple.Best Forum Adviser & Forum Personality of the Year 2018.
(No, me neither).Comment
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Originally posted by Tomo1971 View PostSo, why does the total of my APN's add up to <10k, yet if I do back of fag packet calcs on the tax and NI i should have paid on the loans equal >£24k
If (big IF), i did succumb to paying off the APN's, would that be it, done and dusted, end of story, no more money owed?
*note that I did have a letter through for a discovery assessment for one year but never had anything further from that year, so may at one point have another APN through but still wouldn't put the total above what I calculated as tax and NI owed.
Again, thanks for spending time to explain in simple terms for a thicket!
The 2019 charge is calculated on the total loan amount - irrespective of open or closed years. This is the shocking part.
A hypothetical case where you have loans of £150k over 3 years then 2019 charge will be around £75k. (PAYE + NIC + INTEREST)
If HMRC opened an enquiry into only 1 of those years then the APN would be around 20k. (PAYE only - NO INTEREST)Comment
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Minor point to above but with this 'proposed' loan charge I don't think it's interest included (well it will be if you are late paying it). So is PAYE & NIC
But still horrendous...Comment
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Originally posted by difficulttimes View PostMinor point to above but with this 'proposed' loan charge I don't think it's interest included (well it will be if you are late paying it). So is PAYE & NIC
But still horrendous...
Eg. £300k loans results in a £130k tax/nic bill. (Note: you lose £1 of personal allowance for every £2 you go over £100k income.)
https://www.incometaxcalculator.org....=300000&time=1
It will be even worse if you earn other income in 2018/19 because more of the loan charge will get pushed into the 40% and 45% tax bands.Last edited by DonkeyRhubarb; 19 August 2016, 08:04.Comment
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So, in 2008 I went into an accountant's office with a view of using a LTD Co (I had just been laid off PAYE and the role I had been offered was contract only) - I thought I was seeking professional advice!
I came out signed up for an EBT. I now owe circa £24k. This is based on HMRC thinks I should have paid in tax and NI if the 'loans' had been paid as PAYE.
The job I did meant working all over the UK - as part of that, I purchased my own vehicle (van on personal HP), paid for its upkeep, fuel, insurance etc. All my accommodation while been away from home, food, incidentals, PPE, tools, IT, Phone bill etc, all came from my income from PAYE (10k) and the loan payments.
If HMRC can have the argument that IF I was PAYE that's the amount of tax I should have paid, then surely I can have the argument if I was PAYE, I would have been claiming the above expenses back and thus reducing any tax liability..... but let me gues... it doesnt work like that.....
Looking back and having since been a LTD Co, as my expenditure was quite high due to the amount of travel I did, LTD Co would have been the best way to have gone ..... typical IT contractors who have few expenses Im sure benefited a lot from EBT's as they have less legitimate expenses to offset.
My day rate was £210 a day - I think my van HP was £280/month, fuel for 50k miles a year, average of £45 a night for hotel/food and maybe away from home 15 nights a month.... im sure that wouldn't leave much left that is taxable!
Clutching at straws, or a valid argument to take to HMRC?
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