Can I settle some years under CLSO2 and pay DR 2019 Charge under another year?

[luxCon]

I have 3 tax years with loans.
It may well be financially best for me to Settle (CLSO2) 2 of those years, and let the 3rd year run in to DR 2019 loan Charge.

Under the terms of the settlement with HMRC is that possible, or does HMRC insist on all years are settled or all years go to DR Chare?

This is not clear to me on the guideline, could someone please point me to the bit on HMRC's site that clarifies this?

https://www.gov.uk/guidance/disguise...ur-tax-affairs

[me206et]

I have 3 tax years with loans.
It may well be financially best for me to Settle (CLSO2) 2 of those years, and let the 3rd year run in to DR 2019 loan Charge.

Under the terms of the settlement with HMRC is that possible, or does HMRC insist on all years are settled or all years go to DR Chare?

This is not clear to me on the guideline, could someone please point me to the bit on HMRC's site that clarifies this?

https://www.gov.uk/guidance/disguise...ur-tax-affairs

Its a shame nobody came in on this as I could save a chunk with this.
My idea would be to settle on the loans known and let the other ride to LC.
Not sure if this will work.

[WTFH]

Maybe speak to a tax advisor

[luxCon]

Its a shame nobody came in on this as I could save a chunk with this.
My idea would be to settle on the loans known and let the other ride to LC.
Not sure if this will work.

My understanding is that you have to settle all years under one loan agreement. So if you were with 2 or more schemes you can settle 1 or more, and leave the other to go to LC.

As I said that is my understanding and not confirmed by HMRC. I guess it makes sense. You tell HMRC by 31st May I want to settle my loan with provider A for years a, b & c. And you don't mention about loan with provider B for years d,e & f.

Comes 2019, you declare provider B's outstanding and unsettled loans on your self assess,ent and are charged the DR 2019 charge.

[GreenMirror]

Maybe speak to a tax advisor

Preferably one with knowledge in this area. Like DWS. I am sure there are others with experience - however I am not sure I would like to pay a tax adviser to learn.

[Clairol]

Multiple years

I asked to settle before clso2 came out.
My letter stated I had to pay for open years but closed were optional.
Clso2 terms are mandatory voluntary payment of open & closed.
So it would seem if settling under clso2 all years have to be paid.

[Albert49]

Settle open years

I received an offer letter that said I could settle open (protected) years and leave the closed (non protected) years unsettled, I phoned to confirm this and was told this was acceptable. I then asked whether I could settle some open years and leave other open years unsettled, they were non committal in their response.

[webberg]

Certainly the original HMRC position forcing you to settle all years (open or closed) has changed and now you can settle open years and leave closed years to be caught in the loan charge.

Make sure that if you go this way, you are clear as to which years are open and which closed.

If you have used two schemes in one year and have enquiries on only one, you WILL be obliged to offer the second as part of the settlement. Not doing so risks the contract you sign being invalid and that might lead to it being put to one side and penalties.

There is no great learning curve for any competent adviser here in terms of the calculations and the contract form.

Where it gets more difficult is understanding if what you have achieved is sufficiently "final". That is where an adviser who has experience is more useful.

Don't forget that you also have to deal with the loan.