Pension contributions can be used to relieve LC19

[Manic]

Not sure on what grounds you can be so sure?

The legislation might tell HMRC how to apply the tax rules but they are required to administer the tax system in a manner that applies equally to all.

It does not say that once they have the DR Charge "a new tax on a new source", they can abandon an enquiry on whether a loan is taxable income.

I agree that their performance has been woeful, incoherent, incompetent. It is not however a conspiracy and given that the whole purpose of the DR charge is to prevent the above shortcomings coming to public attention, why would they solve that problem only to immediately re-open another?

HMRC are, over the next few years going to lose a lot of experienced employees. The consolidation of provincial offices into super city locations is going to haemorrhage staff at a rate they won't be able to replace. The fact is that the Civil Service in it's entirety has abolished entry level grades and frozen recruitment for years means that offices are stuffed full of people well over 40.

I think once they have the money, I don't see any reason why they would feel the need/ have the bandwidth (delete as appropriate) to actually properly close down each year in what would be a reasonable timeframe. I expect it will take a decade to resolve all this.

[webberg]

Well that's me told.

[Loan Ranger]

I think once they have the money, I don't see any reason why they would feel the need/ have the bandwidth (delete as appropriate) to actually properly close down each year in what would be a reasonable timeframe. I expect it will take a decade to resolve all this.

If ever.

LC19 achieves everything HMRC wants:

1) it will pressure a lot of people to settle
2) it will crystalize APN payments on account they've already collected
3) it will allow them to tax people they couldn't issue APNs to (pre-2004 schemes, non-DOTAS registered schemes and closed years)

[CanPayButWouldRatherNot]

From the horse's mouth.

https://www.whatdotheyknow.com/reque..._passthrough=1

?[/B][/COLOR]

thanks very much .. is that not HMRC confirmation plain for us all to see ?

[difficulttimes]

If ever.

LC19 achieves everything HMRC wants:

1) it will pressure a lot of people to settle
2) it will crystalize APN payments on account they've already collected
3) it will allow them to tax people they couldn't issue APNs to (pre-2004 schemes, non-DOTAS registered schemes and closed years)

But it would still be considered in HMRC's eyes another payment on account... the case is still open as they will argue that you should be taxed on fees which only a tribunal could decide and I find it unfathomable that a judge could rule on something that HMRC nor the individual could be 100% sure of what the fees are and whether these have already been taxed previously. Becomes very complicated.

But we are talking about peanuts compared to the above and then there is a risk that the decision goes against HMRC. That risk in comparison to a bit more tax on fees.

HMRC had zero motivation to go to tribunal when APNs were introduced so they would have a lot less now.

They will tell you that the case is still open etc. as that is the policy.

All things being considered it would be nice to not have an enquiry hanging over your head. You never know what they are planning next to roll out..

[starstruck]

If you want to work out what effect pension contributions, salaries, dividends etc.. will have on Loan Charge - this is quite a handy spreadsheet:

https://help.crunch.co.uk/customer/p...lsx?1510048566

I've put Loans into "Other Income" and it seems to work.

EDIT- Maybe I'm doing something wrong but even huge pension contributions make very little difference.
EDIT2 - Seems like it ignores any pension contributions over £40k. maybe it can't handle carry forwards

[Finalwhistle]

EDIT- Maybe I'm doing something wrong but even huge pension contributions make very little difference.

LOL this doesn't surprise me...after all why would HMRC be willing to give us a way out when they have our balls in their hands with the DR LC!?

[Loan Ranger]

EDIT2 - Seems like it ignores any pension contributions over £40k. maybe it can't handle carry forwards

Not being able to handle carry forward is not the only problem with tax calculators.

They also don't take into account the fact that the pension provider claims tax relief for you at 20% and adds this to your pension.

[starstruck]

Not being able to handle carry forward is not the only problem with tax calculators.

They also don't take into account the fact that the pension provider claims tax relief for you at 20% and adds this to your pension.

So is this correct?

Salary = 10K
Loans = 100K
Pension Paid = 80K (assuming can carry forward 100K Gross)
Pension in Pot = 100K (tax relief added by provider)
Taxable Income = 10K

[Loan Ranger]

So is this correct?

Salary = 10K
Loans = 100K
Pension Paid = 80K (assuming can carry forward 100K Gross)
Pension in Pot = 100K (tax relief added by provider)
Taxable Income = 10K

I think that's right, except you only need to be able to carry forward £80k net.