HMRC settlement Deadlines/delays and the LC

[AVFC]

Tax Years

Only 2013/14 is safely unprotected.

HMRC could still raise a discovery assessment against 2014/15 and 2015/16. (They have 4 years from the end of the tax year.)

And they could still open an enquiry for 2016/17. (They have 12 months from when you submitted your tax return.)

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The LC applies to both protected and unprotected years.

The main difference between the two is, if you settle, there is no interest charged for unprotected years.

Here's the rub though. If you go down the settlement route, HMRC could raise discovery assessments for 2014/15 and 2015/16, and open an enquiry for 2016/17, before you settle, thereby making you liable to interest.

Loan Ranger,

Are you saying that if HMRC have not opened a discovery via SA demand then it's better and less costly to submit an SA for a given year, pay the tax that way no interest can be charged. I was under discovery for 13/14 and entered a loan figure for 9k and paid the tax but my my outstanding loan statement from the scheme provider on said 7k which no doubt HMRC now have. I have had no comeback from HMRC. It is the same for 14/15 in tax paid on the SA calculation and no comeback six months later.

For 15/16 and 16/17 I am tempted to just submit SA's and pay the tax before I get a request as this is surely the cheapest option as they will be unprotected years.

[Loan Ranger]

Loan Ranger,

Are you saying that if HMRC have not opened a discovery via SA demand then it's better and less costly to submit an SA for a given year, pay the tax that way no interest can be charged. I was under discovery for 13/14 and entered a loan figure for 9k and paid the tax but my my outstanding loan statement from the scheme provider on said 7k which no doubt HMRC now have. I have had no comeback from HMRC. It is the same for 14/15 in tax paid on the SA calculation and no comeback six months later.

For 15/16 and 16/17 I am tempted to just submit SA's and pay the tax before I get a request as this is surely the cheapest option as they will be unprotected years.

I presume the scheme provider said you didn't need to file SA returns?

Aren't there penalties for filing a late return? Deadline is 31 Jan following the end of the tax year eg. 31/1/17 for 15/16.

For 13/14 and 14/15, what did you declare the loans as on the SA? Other income? Did you pay nics on the loans as well as tax, or just tax?

I think you'd be better off getting some advice from an independent advisor.

[JackH1]

Hi JackH1, If you are self employed then surely you can submit expenses such as motor mileage and subsistence via a Self Assessment for each of the years to offset against any liabilities seems to make sense to me but again speak to an accountant for this position.

Unfortunately I live in London so can't claim on motor mileage. I will speak to WTT when they contact me to find out more but it's unlikely in my position can claim expenses.

[JackH1]

I have just had a draft statement via the Trust Helpline for my loans with Dynamic Partners and two years were 8k to high after cross referencing P11D and bank statements so I would beware that there are further scammers out there trying to fleece people. They also said that there 5% charge of total loans value and plus £250 admin change to release me from the deeds once I settle with HMRC to which I replied that this would be legally challenged.

To anyone dealing with Trust Helpline do some digging as I suspect they are very closely linked to Dynamic Partners

I'm with WTT Consulting in their CLSO settlement they have the release of loans included in their package so no extra cost.

[starstruck]

I'm with WTT Consulting in their CLSO settlement they have the release of loans included in their package so no extra cost.

I believe they will negotiate on your behalf to get the loans released, but I doubt they will pay any associated fees and they can't force the trustees to release them.

[webberg]

Correct.

If there is a third party cost, we have no choice but to pass it on.

[Jimmyjohn]

Closing LTD company

Hoping sombody can help me

I've Got loans to pay from an employee scheme I was in 2011 2012 years

I will need to close down my current limited company via MVL around 60k to pay the loans. Think this is classed as capital gains income and I get entrepreneurs relief.

What tax rate would the loans start at if taxed under the 2019 LC
year ? would i still get the 46k lower tax allowance.
Tanks JJ

[Lisajane]

Contact

Hi Phil

Thanks for this. How do I contact you? New to all this & in a bit of a panic.

Regards
Lisa

phil@dswtres;2554854]There's a lot of understandable worry and panic as deadline number 1 approaches. So I'm posting this to calm fears on the same queries I keep hearing

These are 100% correct. HMRC will tell you themselves and i've got it in writing from them also.


1.You only need to register interest by 31 May. No loan details are required to be given.

2.Loan details to be provided by end Sep deadline.

Now, if those 2 things are done, then your obligations are 100% complete at that stage,

The loan charge will NOT kick in due to HMRC delays. As long as you/your advisor meets the deadlines you are 100% ok to settle.
When you receive the settlement deeds, there will be a deadline on them to sign. As long as that deadline is met, you are fine. You will settle and not be affected by the LC.

Also, whilst on the subject, if you're unaware, they have confirmed that the loan charge isn't final and they could come back for more, such as interest. (which realistically means they 100% will come back)

Finally - and I hope the mods don't mind me posting this part but its purely to help. All clients of mine will receive an email at least 24 hours before the deadline at end of this month confirming they are definitely registered with HMRC.[/QUOTE]

[Lisajane]

Contact

Hi Phil

How do I contact you outside of this thread.
I was with AML for 4 yrs 09/10 - 12/13
& white collar/ asmg for 05/06 - 09/10

Regards
Lisa

[JackH1]

Hi Phil

How do I contact you outside of this thread.
I was with AML for 4 yrs 09/10 - 12/13
& white collar/ asmg for 05/06 - 09/10

Regards
Lisa

How long have you known about the current situation?
Some of us only found out last month so alot are in the same boat