AML Loan Charge Calculator AML Loan Charge Calculator - Page 2
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  1. #11

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    Default Other losses during the year from business

    Hi

    I had loans from 2008-2011 and it comes up to around £120K I think.

    However those years I also had losses in an online business and a flat I rented out (which I have since sold)

    Do these losses make any difference to HMRC settlement amount?

    I have the tax returns from those years to prove it, if need be.

    Any help would be appreciated.

  2. #12

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    Default Do old business losses count towards reducing tax?

    Quote Originally Posted by rshome View Post
    Hi

    I had loans from 2008-2011 and it comes up to around £120K I think.

    However those years I also had losses in an online business and a flat I rented out (which I have since sold)

    Do these losses make any difference to HMRC settlement amount?

    I have the tax returns from those years to prove it, if need be.

    Any help would be appreciated.
    Has anyone got an ideas about this, please?

  3. #13

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    Default Loans Taxed in Years taken

    Quote Originally Posted by rshome View Post
    Hi

    I had loans from 2008-2011 and it comes up to around £120K I think.

    However those years I also had losses in an online business and a flat I rented out (which I have since sold)

    Do these losses make any difference to HMRC settlement amount?

    I have the tax returns from those years to prove it, if need be.

    Any help would be appreciated.
    Hi rshome,

    If you choose to settle, the 120K will be taxed as income over the years you took it (2008-2011).

    Any losses or OTHER INCOME for that matter on your self assessment returns for those years WILL be taken in to account.

    If you supply the loan values to HMRC and the years in which they were taken, HMRC should do the rest - Personally I would get this verified by an independent Tax Advisor.

    Regards.

    MLeggsy

  4. #14

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    Default

    Quote Originally Posted by MLeggsy View Post
    Hi rshome,

    If you choose to settle, the 120K will be taxed as income over the years you took it (2008-2011).

    Any losses or OTHER INCOME for that matter on your self assessment returns for those years WILL be taken in to account.

    If you supply the loan values to HMRC and the years in which they were taken, HMRC should do the rest - Personally I would get this verified by an independent Tax Advisor.

    Regards.

    MLeggsy
    Thank you. Yes I imagine if I had made a profit with the business HMRC would definitely have taxed me on it, so they should equally consider losses too.

  5. #15

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    Default

    Quote Originally Posted by rshome View Post
    Thank you. Yes I imagine if I had made a profit with the business HMRC would definitely have taxed me on it, so they should equally consider losses too.
    Not necessarily.

    Loans are usually taxed on you as employment income according to HMRC.

    If your losses are in a limited company they are not available against your personal income.

    there are also some strict time limits and conditions for claiming losses which yo would need to check. In particular trade losses are usually available only against income from the same trade.
    Best Forum Adviser & Forum Personality of the Year 2018.

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  6. #16

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    Default HMRC double standards

    Quote Originally Posted by webberg View Post
    Not necessarily.

    Loans are usually taxed on you as employment income according to HMRC.

    If your losses are in a limited company they are not available against your personal income.

    there are also some strict time limits and conditions for claiming losses which yo would need to check. In particular trade losses are usually available only against income from the same trade.


    Thanks, however there seems to be no time limit where HMRC can charge us tax and yet with losses, there is a time limit? Makes no sense. If I made profit from a flat I rented out, that is a different trade for me, but HMRC would tax me on it.
    It seems there are no conditions when it comes to profits but only when there are losses. Such double standards by HMRC.
    I was a sole trader so my business finances were going into and out of my personal account.

  7. #17

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    Default

    Quote Originally Posted by rshome View Post
    Thanks, however there seems to be no time limit where HMRC can charge us tax and yet with losses, there is a time limit? Makes no sense. If I made profit from a flat I rented out, that is a different trade for me, but HMRC would tax me on it.
    It seems there are no conditions when it comes to profits but only when there are losses. Such double standards by HMRC.
    I was a sole trader so my business finances were going into and out of my personal account.
    It may not make sense but it's the rules.
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  8. #18

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    Default

    Quote Originally Posted by rshome View Post
    Thanks, however there seems to be no time limit where HMRC can charge us tax and yet with losses, there is a time limit? Makes no sense. If I made profit from a flat I rented out, that is a different trade for me, but HMRC would tax me on it.
    It seems there are no conditions when it comes to profits but only when there are losses. Such double standards by HMRC.
    I was a sole trader so my business finances were going into and out of my personal account.
    Hi rshome,

    I take Webberg's point - He is an expert in this area. In my case HMRC applied the loans (by year) to each SA return.

    If the Losses were recorded on your SA return then they will be taken into account - For me, My SA's contained rental losses and gains, capital gains for buy to lets sales, Dividends and income - All of these were included in the settlement calculations to confirm the shortfall in Tax and Ni. I have had my figures verified by an Independent Tax Advisor and they agree with the HMRC calcs.

    MLeggsy

  9. #19

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    Default Options re LC19

    I just joined and thank you for being here.

    I have loans totaling about £110,000 and HMRC say I owe about £33500 inc NICS and interest.

    In the light of Mondays decision in the house of commons re NC26. I want to stall payment and dont want to enter into a binding payment plan with HMRC. I've started a new business and will post losses this year 2018/19 should I accept the loan charge?

    Best AR916

  10. #20

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    Default

    You mention significant sums and a combination of factors such as losses and business entities and the like.

    I suggest that an hour or two with a professional adviser would be money very well spent rather than reliance upon an anonymous forum?
    Best Forum Adviser & Forum Personality of the Year 2018.

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