loan remuneration advise loan remuneration advise
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  1. #1

    Nervous Newbie


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    Default loan remuneration advise

    Evening All

    Im a new to the forum so please be gentle. I would imagine most of the regulars on here will know what im about to ask but I feel I need some advise.

    I got the dreaded email from a company telling me I need to contact HMRC reagrding some historic remuneration loans I recieved between 2013/14. I have recieved my total Loans which was a total of £22k. Obviously I worried sick about this and am looking to set up a payment plan. Im no longer self employed so need to sort this mess out.
    I have emailed HMRC using their email but havent heard back as of yet. Can anyone advise what I should be doing as im worried im going to be faced with a large tax/NIC bill.

    Many Thanks

    Frank

  2. #2

    Should post faster


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    Jul 2018
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    Quote Originally Posted by frankiej01 View Post
    Evening All

    Im a new to the forum so please be gentle. I would imagine most of the regulars on here will know what im about to ask but I feel I need some advise.

    I got the dreaded email from a company telling me I need to contact HMRC reagrding some historic remuneration loans I recieved between 2013/14. I have recieved my total Loans which was a total of £22k. Obviously I worried sick about this and am looking to set up a payment plan. Im no longer self employed so need to sort this mess out.
    I have emailed HMRC using their email but havent heard back as of yet. Can anyone advise what I should be doing as im worried im going to be faced with a large tax/NIC bill.

    Many Thanks

    Frank
    Firstly, big is all relative. Suspect your bill isn't likely to be that big but it is all relative to what you can pay of course.

    If you just want to settle you will need to contact them to register an interest in settling. Technically the deadline for settling has passed and the Loan Charge is now in effect. So speak to them on the phone about this and see if you can register for settling still.

    Others are fighting it which is another story and you can find out more by searching for Loan Charge Action Group but I suspect, for you, settling is likely to be the better option.

    That's your starting actions.

  3. #3

    Should post faster


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    You don't need to pay back the loan, you just pay the PAYE tax on the loan as though it was income in those years. Assuming you aren't a limited company director?

    UK Salary Tax Calculator 2018/2019/2020: Calculate my take home pay

    Take your salary for 2013/14, put it in the calculator and see how much income tax you paid. Then do the calc again adding your loan onto your salary. The new tax figure, minus the original tax figure - this is the tax you need to pay. It won't be a million miles away from that.

    If you need TTP (time to pay), the horrendous rate from HMRC is 4.25%.

    There is the option to fight, but it comes with risks. For only £22k received, it's a tiny sum. Just got it gone IMO.

  4. #4

    Fingers like lightning

    stonehenge's Avatar
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    Quote Originally Posted by here4beer View Post
    You don't need to pay back the loan, you just pay the PAYE tax on the loan as though it was income in those years. Assuming you aren't a limited company director?

    UK Salary Tax Calculator 2018/2019/2020: Calculate my take home pay

    Take your salary for 2013/14, put it in the calculator and see how much income tax you paid. Then do the calc again adding your loan onto your salary. The new tax figure, minus the original tax figure - this is the tax you need to pay. It won't be a million miles away from that. Plus about 14% interest.

    If you need TTP (time to pay), the horrendous rate from HMRC is 4.25%.

    There is the option to fight, but it comes with risks. For only £22k received, it's a tiny sum. Just got it gone IMO.
    There will also be interest accrued for late payment.

  5. #5

    Should post faster


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    Quote Originally Posted by stonehenge View Post
    There will also be interest accrued for late payment.
    Ah, yes Ok. I thought that was only if you waited for the Loan Charge, and didn't settle.

  6. #6

    Fingers like lightning

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    Quote Originally Posted by here4beer View Post
    Ah, yes Ok. I thought that was only if you waited for the Loan Charge, and didn't settle.
    LC - no interest
    Settling closed years - no interest
    Settling open years - accrued interest from the year loans received to date of settlement

  7. #7

    Still gathering requirements...


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    Your tax shouldn’t be more though (depending on other earnings in that tax year) than approx 4-8k. With added interest of around £400 - £800....

  8. #8

    Nervous Newbie


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    Thank you for your replies. I have made contact with HMRC now and I have sent in my details with my total loans. I guess I have to just sit and wait now.

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