HMRC settlement Deadlines/delays and the LC

[phil@pmtc]

It would be better to assume that all loans/forms of credit will be captured by the rules and if you are told by a promoter/lender otherwise, ask them to explain why their position is different.

Once you have that information, make a decision.

I get the point about asking asking HMRC but other than cause the agency some extra work, I can safely predict that their response will be that it is the intention that everything is included.

Whether that intention is accurately written into the law or is the intention that a Tribunal or Court may eventually decide is correct, will not bother your average HMRC case officer who is just doing as they are told.

Whilst I do agree with this (as its correct). The problem with is it that the promoters/providers are well practiced in making it sound believable and a valid option. Whereas whilst I agree that HMRC will be biased on the other way, it still remains that if HMRC say its due and you choose not to declare it come October, you could get in a mess. Admittedly webberg is correct when he states that a tribunal or court may decide differently on the specific case details but, given the situation, I read the question being asked on a more literal sense of 'should I include these loans as part of settlement?" and therefore my answer would have to remain the same. If you do not, then HMRC will claim you held back info. This certainly isn't meant to be scare mongering but purely to protect anyone from getting in a bigger hole than already due to incorrect and biased information (from scheme providers that is)

[BrownOwl]

It would be better to assume that all loans/forms of credit will be captured by the rules and if you are told by a promoter/lender otherwise, ask them to explain why their position is different.

Once you have that information, make a decision.

I get the point about asking asking HMRC but other than cause the agency some extra work, I can safely predict that their response will be that it is the intention that everything is included.

Whether that intention is accurately written into the law or is the intention that a Tribunal or Court may eventually decide is correct, will not bother your average HMRC case officer who is just doing as they are told.

Thank you. HMRC and their associates are always pushing the message that the law is clear and it will interesting to hear what a court thinks one day.

Of course HMRC will not return money to anyone that has settled if their ruse falls apart in court.

[JackH1]

Employers NI in CLSO?

Do you know if we will be expected to pay Employers NI ontop of the regular NICs in the settlement?

[Loan Ranger]

Do you know if we will be expected to pay Employers NI ontop of the regular NICs in the settlement?

With employee schemes, there are no NICs in the settlement.

Only self-employed users have to pay NICs.

[JackH1]

With employee schemes, there are no NICs in the settlement.

Only self-employed users have to pay NICs.

Thanks, I was a contractor for 5 years through SmartPay and Principal Contractors to Apr 2017 so was looking to see if I would have to pay the Employers NIC's

[Loan Ranger]

Thanks, I was a contractor for 5 years through SmartPay and Principal Contractors to Apr 2017 so was looking to see if I would have to pay the Employers NIC's

There's no nics at all in the settlement (employee or employer).

[JackH1]

There's no nics at all in the settlement (employee or employer).

So you mean we just have to pay the income tax of 20% per year on the loans? I hope that's the case! Sounds alot better than LC 2019

[Loan Ranger]

So you mean we just have to pay the income tax of 20% per year on the loans? I hope that's the case! Sounds alot better than LC 2019

It's unlikely to be 20%, and there could be interest on top.

Read the last two pages of the PDF.
https://forums.contractoruk.com/hmrc...ml#post2547811

[phil@pmtc]

There's no nics at all in the settlement (employee or employer).

Just to clarify incase anyone sees this as a standalone statement and hasn't read the other above messages fully - Loan Ranger is talking about those that are employed. Self Employed NICS are a separate matter.

[RickG]

Just to clarify incase anyone sees this as a standalone statement and hasn't read the other above messages fully - Loan Ranger is talking about those that are employed. Self Employed NICS are a separate matter.

And a self employed contractor employed by his/her own Ltd company?

And are we talking employee nics or employer NICs? The latter amount to a very significant amount.

The LC19 excludes all class 1 NICs, apparently.