Does anyone know what type of penalties are involved in settlement i.e volutanry payment for closed years ? It hard enough having to pay tax due plus iht plus ni but penalty rates as well ?
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Penalty charges with settlement
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Apologies for typo in title -
Originally posted by Endofdays View PostDoes anyone know what type of penalties are involved in settlement i.e volutanry payment for closed years ? It hard enough having to pay tax due plus iht plus ni but penalty rates as well ?
Interest is charged at simple rates.. and the rate has been near enough 3% since 2008.. so to estimate interest on tax due as at January 2010 - 8 times 3 - circa 24%
Hope that helpsComment
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We have not seen a penalty in a settlement calculation.
HMRC would like you to make a voluntary contribution towards the tax that would have been due on a closed year if they had actually bothered doing their job and opened an enquiry, but that can hardly be called a penalty - because it's voluntary. you do not have to include it.Best Forum Adviser & Forum Personality of the Year 2018.
(No, me neither).Comment
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Originally posted by webberg View PostWe have not seen a penalty in a settlement calculation.
HMRC would like you to make a voluntary contribution towards the tax that would have been due on a closed year if they had actually bothered doing their job and opened an enquiry, but that can hardly be called a penalty - because it's voluntary. you do not have to include it.
Also, what if one settles now with CLSO2 - does that include IHT, or do loans still 'outstanding' with the trust mean that one gets hit with the Loan Charge anyway, regardless of settlement (just because they can, and because of their 'maximum revenue' mandate)?Comment
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Originally posted by Groundhogdays View PostNo interest for settlement with closed years. I take it that open years that were settled with CLSO1 are considered closed? - Yes, that's correct.
Also, what if one settles now with CLSO2 - does that include IHT, or do loans still 'outstanding' with the trust mean that one gets hit with the Loan Charge anyway, regardless of settlement (just because they can, and because of their 'maximum revenue' mandate)?Comment
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Originally posted by webberg View PostWe have not seen a penalty in a settlement calculation.
HMRC would like you to make a voluntary contribution towards the tax that would have been due on a closed year if they had actually bothered doing their job and opened an enquiry, but that can hardly be called a penalty - because it's voluntary. you do not have to include it.Comment
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