Self Assessment Tax Return 2018/19 and Loan Charge

[Snooky]

Yes we have seen this.

If you have settled the tax via a formal contract (you will know if you have signed one) or by withdrawing appeals against assessments (essentially agreeing HMRC's argument), then you are exempt from disclosing the loans in the 2018/19 SATR.

If you have yet to reach the stage of a formal, signed, agreement, then you should make a declaration on the 2018/19 SATR.

This is contrary to the advice from my specialist tax adviser (a firm I engaged specifically to help me deal with LC settlement). I have a preliminary, but unsigned, settlement agreement with HMRC which they need to review and possibly recalculate based on the LC review outcome. My adviser has told me I do not need to complete the Loan Charge section of my 2018/19 SA return. This may be because my loan was from tax year 2008/09 or it may be because they take a different view to you.

I'm not in an informed enough position to argue whether you or they are more correct. As I'm paying them - and knowing that the vagaries of tax law sometimes causes differences of opinion in interpretation - I must go with their suggestion as I can at least show that I've taken appropriate steps to conform with the law.

[webberg]

Thanks for the update. I have been advised that I only need to submit a SATR if HMRC have specifically requested it.

That is incorrect. Who told you that and do you have it in writing. If it was from the scheme promoter I suggest that they are potentially conflicted in this question and cannot be relied upon.

From my knowledge I havent received a specific request to submit a SATR.

If I dont disclose can I just leave it do it at a later date I.e. sept 30th if its deemed I should have?

Depends on whether you have settled or not. If you have, no disclosure. If you have not then I would say disclose by 31st January with a white space rider that you may need to make subsequent amendments.

All very confusing

And then go and get your own advice and not something from a promoter.

[Iter]

Has anyone got confirmation from HMRC that loans made directly by your employer to you do not need to declared on your SA return. So basically the loan is not 3rd party or made by a trust.

So I have been told they dont need declaring, although I want to hear it from the horses mouth. I have asked HMRC for confirmation but nothing. That was over 4 months ago and Ive chased it twice.

And there were some schemes which didn’t involve trusts and had the loans paid off in a legit way via shares/ divi leaving no o/s balance. I’m sure HMRC would still have a different view on liability though even though they know didly squat about them.

[jrock]

And then go and get your own advice and not something from a promoter.

To clarify i have no self employment as paye and not submitted a return for years due to this my tax advisor (not promotor) says therefore any lc stuff can wait till september.

What's your view on this?

[NeedTheSunshine]

To clarify i have no self employment as paye and not submitted a return for years due to this my tax advisor (not promotor) says therefore any lc stuff can wait till september.

What's your view on this?

So you're paying a tax advisor but don't trust them? Then asking a bunch of strangers on the internet to back up the advice of your advisor? I am not a tax advisor but it's called SELF assessment and if you have not reported any income that should have been taxed then HMRC will take a dim view.

[jrock]

So you're paying a tax advisor but don't trust them? Then asking a bunch of strangers on the internet to back up the advice of your advisor? I am not a tax advisor but it's called SELF assessment and if you have not reported any income that should have been taxed then HMRC will take a dim view.

Thanks for that useful insight. Indeed there are strangers and keyboard warriors on the internet. I'm not interested in the views of these but more so the tax experts which I do know exist and provide valuable information.

[NeedTheSunshine]

Thanks for that useful insight. Indeed there are strangers and keyboard warriors on the internet. I'm not interested in the views of these but more so the tax experts which I do know exist and provide valuable information.

I'm very much a Loan Charge victim and have been on the receiving end of HMRC. I'm an active anti LC campaigner and I'm no keyboard warrior. But you won't get in depth advice from a tax expert on your particular scheme here. General guidelines, yes. Otherwise it wouldn't be fair on their paying clients. And some of those tax advisors post lots of valuable information here. If you're unsure about your tax advisor, and you clearly are or else you wouldn't be posting here, pay one that knows a lot about the Loan Charge/Loan schemes. I can think of one or two that post here. Why would you be doubting your paid for non promoter related tax advisor? Personally I think that you are burying your head in the sand. Which lots of us did for quite a while.

[jrock]

I'm very much a Loan Charge victim and have been on the receiving end of HMRC. I'm an active anti LC campaigner and I'm no keyboard warrior. But you won't get in depth advice from a tax expert on your particular scheme here. General guidelines, yes. Otherwise it wouldn't be fair on their paying clients. And some of those tax advisors post lots of valuable information here. If you're unsure about your tax advisor, and you clearly are or else you wouldn't be posting here, pay one that knows a lot about the Loan Charge/Loan schemes. I can think of one or two that post here. You're clearly doubting your current tax advisor. And I think, burying your head in the sand.

I do intend to follow my tax advisors advise and not submit a SATR, I'm simply curious what other fellow LC victims are doing who are in a similar situation as myself. Dont see anything wrong with that tbh after all this is a forum.

I needed to clarify that as I'm PAYE and havent submitted a SATR for many years therefore probably have different reporting requirements then someone that is currently self employed and is by default required to submit a SATR for tax year 2018/19 by 30th Jan 2020.

Interesting that previous reply to my post stated that I should submit a SATR but maybe this opinion was based on not knowing that I have been on PAYE for some time.

[NeedTheSunshine]

I do intend to follow my tax advisors advise and not submit a SATR, I'm simply curious what other fellow LC victims are doing who are in a similar situation as myself. Dont see anything wrong with that tbh after all this is a forum.

I needed to clarify that as I'm PAYE and havent submitted a SATR for many years therefore probably have different reporting requirements then someone that is currently self employed and is by default required to submit a SATR for tax year 2018/19 by 30th Jan 2020.

Interesting that previous reply to my post stated that I should submit a SATR but maybe this opinion was based on not knowing that I have been on PAYE for some time.

I've been PAYE for many years and submit a SATR. I get an annual reminder to do so. I've never been self employed. Unless HMRC tell me to not submit a SATR in writing, I shall continue to do so. If you don't have any income that HMRC should know about that you haven't been correctly taxed on, and you are 100% sure about it, then no problem. Will HMRC agree with you?

[DealorNoDeal]

I do intend to follow my tax advisors advise and not submit a SATR, I'm simply curious what other fellow LC victims are doing who are in a similar situation as myself. Dont see anything wrong with that tbh after all this is a forum.

I needed to clarify that as I'm PAYE and havent submitted a SATR for many years therefore probably have different reporting requirements then someone that is currently self employed and is by default required to submit a SATR for tax year 2018/19 by 30th Jan 2020.

Interesting that previous reply to my post stated that I should submit a SATR but maybe this opinion was based on not knowing that I have been on PAYE for some time.

That advice seems a bit suss to me.

The fact that you've been an employee (PAYE) for several years makes no odds. There are people who left the country several years ago who are still required to report the loans on a SATR.

If you received loans* after Dec 2010, and you haven't already settled, then those loans are treated as additional income in 2018/19 under the LC. The loans have to be declared through SA.

Just because you haven't submitted a SATR for several years doesn't mean you don't need to if you receive other income besides your employment. (The loans are no different, in this respect, than income from BTL or interest on savings.)

* there may be an exception to this if the loans were made directly by your employer and not through a 3rd party like a Trust