AML Loan Charge Calculator AML Loan Charge Calculator
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  1. #1

    More time posting than coding


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    Apr 2016
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    Use this calculator.

    https://www.uktaxcalculators.co.uk

    Worked Example

    Tax year 2008/9.

    You received a salary of £15k. You paid £1,793 in tax on it.

    You received loans of £80k. Plugging total £95k into the calculator, gives tax of £28,626.

    Settlement would be £28,626 less what you've already paid £1,793. Ie. £26,833

    If it's a protected (open) year, interest on top would be approximately 26% ie. £6,976

    -------------------------

    Tax Year...........Accrued Interest
    2001/2....................72%
    2002/3....................66%
    2003/4....................60%
    2004/5....................52%
    2005/6....................46%
    2006/7....................38%
    2007/8....................30%
    2008/9....................26%
    2009/10...................23%
    2010/11...................20%
    2011/12...................17%
    2012/13...................14%
    2013/14...................11%

    .

    PS. interest and other handy stuff is included in the PDF
    https://forums.contractoruk.com/hmrc...g-vs-lc19.html

  2. #2

    Still gathering requirements...


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    Default What makes n Open year (subject to interest)?

    Thank for the attached.

    I have two years under inquiry, one with Section 9A, COP8 letter, and another year Assessment Under Discovery Provisions Section 29.


    Do I take that both years are open subject to interest, or only one of them?

    Thanks

  3. #3

    More time posting than coding


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    Both, unfortunately.

    Either an s9a or s29 count as open (protected).

  4. #4

    Still gathering requirements...


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    Are my figures correct?

    I started using AML in December 2014 and up until then I was a PAYE employee. As an employee I earned £21,237 in the 2011/2012 tax year on which I paid £3,125.40 of income tax according to my P45. I then earned £26,701 as a contractor through AML and my tax return showed I owed another £432.80 in income tax which I paid.

    Plugging my total income for that tax year into the calculator above gives an income tax figure of £9,185.00, does that sound about right? I did have a workplace pension and I opened a private pension when I started contracting but to keep things simple for now I haven't included either pension in my calculation.

    HMRC opened an investigation for that tax year and they came up with a figure of £22,522.60.

  5. #5

    More time posting than coding


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    Quote Originally Posted by LOL17 View Post
    Are my figures correct?

    I started using AML in December 2014 and up until then I was a PAYE employee. As an employee I earned £21,237 in the 2011/2012 tax year on which I paid £3,125.40 of income tax according to my P45. I then earned £26,701 as a contractor through AML and my tax return showed I owed another £432.80 in income tax which I paid.

    Plugging my total income for that tax year into the calculator above gives an income tax figure of £9,185.00, does that sound about right? I did have a workplace pension and I opened a private pension when I started contracting but to keep things simple for now I haven't included either pension in my calculation.

    HMRC opened an investigation for that tax year and they came up with a figure of £22,522.60.
    Are those dates correct?

  6. #6

    Still gathering requirements...


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    Quote Originally Posted by Loan Ranger View Post
    Are those dates correct?
    Ha ha, no they're not. I started using AML in December 2011 and officially left in December 2014 although my last time sheet was for October 2014.

  7. #7

    More time posting than coding


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    If you're total earnings in 2011/12 were

    PAYE employee salary = £21,237
    AML salary + loans = £26,701

    Then no way is HMRC's figure of £22,522.60 tax correct.

    HMRC may have assumed you were with AML the whole year.

  8. #8

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    Quote Originally Posted by Loan Ranger View Post
    If you're total earnings in 2011/12 were

    PAYE employee salary = £21,237
    AML salary + loans = £26,701

    Then no way is HMRC's figure of £22,522.60 tax correct.

    HMRC may have assumed you were with AML the whole year.
    I didn't think it was correct. I'm not sure the best way to challenge it with HMRC without opening a can of worms for subsequent tax years. I think I shall take advice on this one.

  9. #9

    Nervous Newbie


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    Apr 2018
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    Quote Originally Posted by LOL17 View Post
    I didn't think it was correct. I'm not sure the best way to challenge it with HMRC without opening a can of worms for subsequent tax years. I think I shall take advice on this one.
    I had exactly the same. Joined AML in Jan 2014 after being PAYE - AML did my tax return for the 2013-14 Tax Year and lo-and-behold HMRC come back with a figure assuming AML for the whole year. They obviously didn't do any in-depth work and probably just took a shotgun approach to all AML returns.

  10. #10

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    Quote Originally Posted by luxCon View Post
    Thank for the attached.

    I have two years under inquiry, one with Section 9A, COP8 letter, and another year Assessment Under Discovery Provisions Section 29.


    Do I take that both years are open subject to interest, or only one of them?

    Thanks
    I rang HMRC to find out three years out of 8 were not under enquiry. Told me directly over the phone which I guess means no interest payemnet.

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