LOAN CHARGE expenses deductions

[beresd]

Hi there,

I have spent an hour or so looking through the forums but not found any details so apologies if this has been raised.

I am looking for information on legitmate business expenses to deduct against the £58,000 I am liable for with the LC.

Does anyone have any information to hand or know what the score is when it comes to deductions agaisnt the loan amount?

Thanks in advance.

B

[webberg]

Hi there,

I have spent an hour or so looking through the forums but not found any details so apologies if this has been raised.

I am looking for information on legitmate business expenses to deduct against the £58,000 I am liable for with the LC.

Does anyone have any information to hand or know what the score is when it comes to deductions agaisnt the loan amount?

Thanks in advance.

B

Not possible in statute.

The legislation allows for deductions from the gross loans only for amounts subject to a previously agreed tax charge.

[simran]

Not possible in statute.

The legislation allows for deductions from the gross loans only for amounts subject to a previously agreed tax charge.

What expense deductions can we make from total loan amount?

Can we make standard 5% expense diductions from total loan amount as if HMRC is classifying this PAYE umbrella income then as far as I know 5% straight is what normally contractors can deduct from umbrella earnings without providing any expense evidence.
See this

Contractors' Questions: What is the IR35 5% expense rule?


So if are forcing us to declare loan as income we should be in position to deduct 5% as expense?
Any advice?

[webberg]

What expense deductions can we make from total loan amount?

Can we make standard 5% expense diductions from total loan amount as if HMRC is classifying this PAYE umbrella income then as far as I know 5% straight is what normally contractors can deduct from umbrella earnings without providing any expense evidence.
See this

Contractors' Questions: What is the IR35 5% expense rule?


So if are forcing us to declare loan as income we should be in position to deduct 5% as expense?
Any advice?

HMRC is not classifying the loan as PAYE income. It is treating the loan amount as income for the purposes of the loan charge. That is not a substitute for PAYE.

Consequently, no 5% deduction.