Loan charge review - Government response is here

[Blaize]

I spoke to HMRC who confirmed that I had signed the settlement however, HMRC had not accepted the settlement as they decided to put this on hold and wait for review to be completed. HMRC have told me as the settlement has not been accepted by themselves do nothing until it is now accepted in law. All by years were pre 2010
Hope this helps someone else in similar position.

Thanks, I think this is the position I am in, as I received a letter to say they were putting it on hold, awaiting the outcome of the review.

My loans are 2006/7 and a small amount 2007/8. I received one letter that implied they are both closed years and included an interest amount that I could choose to pay voluntarily, but when my settlement paperwork came through (with the threat of LC if it was not signed and returned immediately, so I finally gave in and did this) they have applied interest to the amount owed... so am wondering if that means the years are actually open, or if they were just taking liberties! Should I have to pay interest if the years are closed?

[DealorNoDeal]

My loans are 2006/7 and a small amount 2007/8. I received one letter that implied they are both closed years and included an interest amount that I could choose to pay voluntarily Only the tax should be by voluntary restitution. Not the interest., but when my settlement paperwork came through (with the threat of LC if it was not signed and returned immediately, so I finally gave in and did this) they have applied interest to the amount owed... so am wondering if that means the years are actually open, or if they were just taking liberties! Should I have to pay interest if the years are closed? No

Did HMRC ever write to you, after you submitted your tax returns, querying them? If not, the years would be closed.

If you're not sure, you could always ask HMRC to provide evidence (copies of letters) that the years are open.

[Blaize]

Did HMRC ever write to you, after you submitted your tax returns, querying them? If not, the years would be closed.

If you're not sure, you could always ask HMRC to provide evidence (copies of letters) that the years are open.

Thank you for your reply. I will call them and ask them them if the years are opened or closed and for evidence if they claim they are open.

[DealorNoDeal]

Thank you for your reply. I will call them and ask them them if the years are opened or closed and for evidence if they claim they are open.

No problem. HMRC sometimes use the term "protected" for open years and "unprotected" for closed.

[xtrail]

Thanks, I think this is the position I am in, as I received a letter to say they were putting it on hold, awaiting the outcome of the review.

My loans are 2006/7 and a small amount 2007/8. I received one letter that implied they are both closed years and included an interest amount that I could choose to pay voluntarily, but when my settlement paperwork came through (with the threat of LC if it was not signed and returned immediately, so I finally gave in and did this) they have applied interest to the amount owed... so am wondering if that means the years are actually open, or if they were just taking liberties! Should I have to pay interest if the years are closed?

Hi Blaize, I did exactly the same as you returning the paperwork for same reason. I also had one year where interest was applied 2006/2007 however, when I spoke to HMRC and asked about which the open year they simply stated that as all loans were pre 2010 that the loan charge would not apply and as HMRC had not accepted the signed settlement I had returned to do nothing. I had in previous years paid money on account against a previous discovery.

I hope you can share how you got on.

Many Thanks

[Blaize]

Hi Blaize, I did exactly the same as you returning the paperwork for same reason. I also had one year where interest was applied 2006/2007 however, when I spoke to HMRC and asked about which the open year they simply stated that as all loans were pre 2010 that the loan charge would not apply and as HMRC had not accepted the signed settlement I had returned to do nothing. I had in previous years paid money on account against a previous discovery.

I hope you can share how you got on.

Many Thanks

Well, I called them and the guy confirmed that both of my contentious years (06/07, 07/08) are unprotected (i.e closed - thanks for the translation DealorNoDeal!). So I cannot understand why they had added interest to my settlement agreement which was essentially a voluntary payment for closed years.

He said he can't guarantee that they won't try to uphold my signed settlement, that no-one knows what is going on until parliament discusses it, that he's hopeful for me that I won't have to pay anything as it's all pre-2010, that he can't really answer anything, but I should hear from them by July 2020... so a lot of not-knowing-anything really.

[DealorNoDeal]

He said he can't guarantee that they won't try to uphold my signed settlement, that no-one knows what is going on until parliament discusses it, that he's hopeful for me that I won't have to pay anything as it's all pre-2010, that he can't really answer anything, but I should hear from them by July 2020... so a lot of not-knowing-anything really.

I'm a lot more hopeful for you than he is.

[webberg]

A contract signed before March 2016 is almost certainly NOT going to be amended and tax repaid.

A contract signed after that which includes closed years will be amended, probably around July this year.

[lowpaidworker]

July

When realistically will HMRC be writing back out to people on their settlement list with new figures.

Whilst they said by July (bog standard letter they sent to everyone) I would imagine they are busy looking at the some of these settlement letters right now ?

Anyone got any ideas.

Last thing I need is a letter 31st July and then telling me I need to settle by 1st September. (1 month 1 day notice)

[webberg]

When realistically will HMRC be writing back out to people on their settlement list with new figures.

Whilst they said by July (bog standard letter they sent to everyone) I would imagine they are busy looking at the some of these settlement letters right now ?

Anyone got any ideas.

Last thing I need is a letter 31st July and then telling me I need to settle by 1st September. (1 month 1 day notice)

You don't "need" to settle. You can choose not to.

Also you can calculate your values now and prepare for the settlement. That will be ready around 30th September, unless you have a time to pay.

So effectively if settlement is your thing you've had from at least May 2018 to the end of September this year (28 months) to prepare.