Newbie. Just found out about the Loan charge. Help

[Raymondo]

Can you prove to HMRC you are repaying it with interest. Also note the £10K annual limit so if you are paid min wage +£10k loan - is your total annual earnings within that? I doubt it.

I have been in the scheme since January 2018

The loans between January and April for tax year 2017 - 2018 are less than 10,000
The loans between April 2018 and August are almost exactly 10,000 - just under.

So what does that mean?

[Fred Bloggs]

I have been in the scheme since January 2018

The loans between January and April for tax year 2017 - 2018 are less than 10,000
The loans between April 2018 and August are almost exactly 10,000 - just under.

So what does that mean?

It means thank your lucky stars you aren't in real deep s**t. Get out of the scheme right now. Fill in a self assessment form at year end and pay the tax bill. Then feel real lucky you aren't in the situation of owing hundreds of thousands in back tax. I think you have a fairly painless exit route here from what I can see. We all live and learn.

[cojak]

I have been in the scheme since January 2018

The loans between January and April for tax year 2017 - 2018 are less than 10,000
The loans between April 2018 and August are almost exactly 10,000 - just under.

So what does that mean?

Follow this advice to find out how much you owe: https://forums.contractoruk.com/hmrc...ml#post2575585

[Delendog]

It means thank your lucky stars you aren't in real deep s**t. Get out of the scheme right now. Fill in a self assessment form at year end and pay the tax bill. Then feel real lucky you aren't in the situation of owing hundreds of thousands in back tax. I think you have a fairly painless exit route here from what I can see. We all live and learn.

If I was you I'd declare the loan on your 2017/18 self assessment (amend it if done already) - you will be taxed on it at your nominal rate. As you have left the scheme now then either get the provided to reverse this years loan or declare it on your next return.