Template for replying to HMRC for contractor loans settlement Template for replying to HMRC for contractor loans settlement
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  1. #1

    Nervous Newbie


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    Default Template for replying to HMRC for contractor loans settlement

    I want to write to HMRC to settle the loans but is there a template I should follow?

    Will something like this suffice? What offer information do I need to provide? Is there another template I should use?


    I am writing because I want to settle tax investigation for contractor loans

    Below is what I received:

    Mar 01 2017 Acme Limited Benefit Trust £9,234.77
    Nov 01 2017 Acme Limited Benefit Trust £9,234.77
    Feb 01 2018 Acme Limited Benefit Trust £9,234.77

  2. #2

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    Quote Originally Posted by a5878170 View Post
    I want to write to HMRC to settle the loans but is there a template I should follow?

    Will something like this suffice? What offer information do I need to provide? Is there another template I should use?


    I am writing because I want to settle tax investigation for contractor loans

    Below is what I received:

    Mar 01 2017 Acme Limited Benefit Trust £9,234.77
    Nov 01 2017 Acme Limited Benefit Trust £9,234.77
    Feb 01 2018 Acme Limited Benefit Trust £9,234.77
    Seems good enough to me. Include your UTR and address and NI number.
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  3. #3

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    Quote Originally Posted by webberg View Post
    Seems good enough to me. Include your UTR and address and NI number.
    Thanks @webberg I also received a salary should I include those details or will HMRC already know about this?

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    Quote Originally Posted by a5878170 View Post
    Thanks @webberg I also received a salary should I include those details or will HMRC already know about this?
    The more you provide the fewer questions later.
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  5. #5

    Still gathering requirements...


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    Is there a template for simply asking HMRC for details of settlement and any relevant information HMRC currently hold on their claim?

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    Quote Originally Posted by dmuk View Post
    Is there a template for simply asking HMRC for details of settlement and any relevant information HMRC currently hold on their claim?
    HMRC can only do a settlement calculation if they have the data. Otherwise they will guess.

    Information they hold on you can be obtained via an SAR (Subject Access Request).
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  7. #7

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    Quote Originally Posted by webberg View Post
    HMRC can only do a settlement calculation if they have the data. Otherwise they will guess.

    Information they hold on you can be obtained via an SAR (Subject Access Request).
    When you say 'guess', what metrics are HMRC likely to use?

  8. #8

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    Quote Originally Posted by ChimpMaster View Post
    When you say 'guess', what metrics are HMRC likely to use?
    Well it has to be just and reasonable.

    Various cases, more VAT ones that income tax of late, have looked at what HMRC can and do use to inform their opinion.

    We have noticed a tendency for HMRC to look at day rate for a first go at a value. They will assume that you achieved the maximum day rate for the task and had no holidays or other time off and also that the gross day rate all went to you.

    In reality, day rate for the same job often varied and breaks for holiday or whilst the client reset their objectives are common. Also fees paid by the client to the agent were never yours and cannot (in my view) be your taxable income.

    If HMRc come up with a value, then the onus is on you to show it is excessive.

    If you come up with a calculation then it is for HMRC to show it is not just and reasonable.

    My preference would be to get your retaliation in first.
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  9. #9

    Default Template for replying to HMRC for contractor loans settlement

    Hi "a5878170" , Did you managed to settle the enquiry with HMRC ? Loan settled and also i need a template to reply to HMRC. What other things like salary etc need to be mentioned in reply ?

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