Originally posted by luxCon
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Disappearing loans?
Collapse
X
-
-
-
Originally posted by pateen View PostMost have already comunicated.
Mine certainly have.
I was with AMLComment
-
I take it from this thread that posters may be exempt from the 2019 loan charge:
1) Where the loan was written off on or before March 16th 2016 (the date the legislation was announced), then it is not subject to the charge.
2) Where the loan has been repaid, in money, before April 5th 2019 then it will not be subject to the charge.
However sourcing such evidence is difficult as in most cases the original scheme is liquidated (but the loan still exists as transferred to a trust or other entity)?
What format/type of evidence does HMRC accept?Comment
-
Originally posted by dmuk View PostI take it from this thread that posters may be exempt from the 2019 loan charge:
1) Where the loan was written off on or before March 16th 2016 (the date the legislation was announced), then it is not subject to the charge.
2) Where the loan has been repaid, in money, before April 5th 2019 then it will not be subject to the charge.
However sourcing such evidence is difficult as in most cases the original scheme is liquidated (but the loan still exists as transferred to a trust or other entity)?
What format/type of evidence does HMRC accept?
Not convinced 1) is correct.Comment
-
Originally posted by dmuk View PostI take it from this thread that posters may be exempt from the 2019 loan charge:
1) Where the loan was written off on or before March 16th 2016 (the date the legislation was announced), then it is not subject to the charge.
2) Where the loan has been repaid, in money, before April 5th 2019 then it will not be subject to the charge.
However sourcing such evidence is difficult as in most cases the original scheme is liquidated (but the loan still exists as transferred to a trust or other entity)?
What format/type of evidence does HMRC accept?
1. The loan charge uses its own definition of outstanding loan. That is basically the original loan less repayments made in cash.
A write off, release, forgiveness etc is not a repayment and will be ignored for the purposes of the loan charge.
2. A loan repaid in cash will not be chargeable provided that the repayment was not in itself part of a tax avoidance plan and you do not have the money returned nor are likely to.
Unfortunately therefore the HMRC claims that the charge can be avoided by repaying the loan are false and simply part of the misinformation they feed MPs.Best Forum Adviser & Forum Personality of the Year 2018.
(No, me neither).Comment
-
Originally posted by webberg View PostI believe that in most cases, HMRC will not agree with either of the points you make.
https://www.wttconsulting.co.uk/sing...ration-to-biteComment
-
Originally posted by dmuk View PostThanks for the response. The two points I mentioned were from this article
https://www.wttconsulting.co.uk/sing...ration-to-bite
The write off of a loan pre March 16 should, in theory, mean no loan to be disclosed. We put this to HMRC who - after a lot of logic somersaults - disagreed.
We still beleive that it offers a way out of the charge but it will be challenged.
Repaying in cash is fine, but you will never see the money again.Best Forum Adviser & Forum Personality of the Year 2018.
(No, me neither).Comment
-
Originally posted by dmuk View PostThanks for the response. The two points I mentioned were from this article
https://www.wttconsulting.co.uk/sing...ration-to-bite
Quote.
"There are two exemptions to this. Where the loan was written off on or before March 16th 2016 (the date the legislation was announced), then it is not subject to the charge....."
webberg can you clarify what your guy says.Comment
-
How do HMRC find out that any such loan exists in the first place? Do they just email trusts asking for a list of loans and beneficiaries? Presumably a loan could 'disappear' if the HMRC never knew about it in first place?Comment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment