HMRC Loan charge or Settlement HMRC Loan charge or Settlement
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  1. #1

    Nervous Newbie


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    Default HMRC Loan charge or Settlement

    First time post, I would really appreciate some advice as I am a nervous wreck with the Loan Charge saga.

    I used an Accountant suggested Tax planning via AML in 2014/15. In light of suggestions here on the forum & accountant, i expressed interest to settle near the deadline and HMRC promptly sent an enquiry (NIC Reg80) just before Christmas and a notice of decision in March 2019 which has been appealed.

    HMRC have given me a settlement figure of around 61K. My accountant says this can be reduced by and has given a figure of 57K as HMRC have not included Corporation Tax (CT) deductions for the Employer’s NI liability and not provided for the employer’s NI allowance available for 2014/15.

    The Loan charge option would be significantly lesser.

    My dilemma is whether i should settle with no future recourse or opt to pay the lower Loan charge and be ready for a fight?

    Any suggestions are much appreciated.

    Regards,
    Raj

  2. #2

    Some things in Moderation

    cojak's Avatar
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    Default

    Quote Originally Posted by parvatik View Post
    First time post, I would really appreciate some advice as I am a nervous wreck with the Loan Charge saga.

    I used an Accountant suggested Tax planning via AML in 2014/15. In light of suggestions here on the forum & accountant, i expressed interest to settle near the deadline and HMRC promptly sent an enquiry (NIC Reg80) just before Christmas and a notice of decision in March 2019 which has been appealed.

    HMRC have given me a settlement figure of around 61K. My accountant says this can be reduced by and has given a figure of 57K as HMRC have not included Corporation Tax (CT) deductions for the Employer’s NI liability and not provided for the employer’s NI allowance available for 2014/15.

    The Loan charge option would be significantly lesser.

    My dilemma is whether i should settle with no future recourse or opt to pay the lower Loan charge and be ready for a fight?

    Any suggestions are much appreciated.

    Regards,
    Raj
    The reason that no-one has answered is because no-one can answer that for you.

    Only you know whether you can afford the small chance of winning vs the large chance of picking up penalties if you fight, or he large chance of a lesser amount and sleeping at night if you settle.

  3. #3

    I Am Legend


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    Default

    If I was to give advice, it would be to get an adviser. A couple are well known on CUK - feel free to PM for details.

  4. #4

    Super poster


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    Default

    Sounds to me as though you have a scheme in which you used your own limited company?

    I'm not convinced your accountant is correct. However, you have an accountant and in theory at least, you should not need to seek advice or comment from a bunch of anonymous (for the most part) people who will not understand your situation half as well as the accountant you have.

    It may be that if your company is still around, then paying the loan charge - which is NOT settling - is more complex than you have sketched.

    Your accountant should help.

    The only observation I would make is that an accountant suggested by a scheme promoter may not be as independent as you think. If they have connections with the promoter, then it may be that they have a conflict of interest. You should ask them about that and consider carefully their response.
    Best Forum Adviser & Forum Personality of the Year 2018.

    (No, me neither).

  5. #5

    Should post faster


    Join Date
    Apr 2016
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    Default TTP and forward interest

    Can anyone please answer the following questions. I am after someone who has had direct experience of agreeing a TTP with HMRC recently who have open and closed years recently.

    1) Did HMRC apply forward interest for TTP of closed years?
    2) Did HMRC apply forward interest for TTP of the late payment interest part of open years?

    I am asking as I have seen evidence that seems to suggest they don't BUT no rules seem to be published.


    Thanks

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