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Loan Charge Next Steps..

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    Loan Charge Next Steps..

    Current Status:
    1. I have loans
    2 How long can I wait before contacting HMRC regarding electing to pay charge over 3 years ?
    2. Can I just sit tight contact HMRC before Sept 2020.?
    Last edited by rexx; 15 February 2020, 22:13.

    #2
    Originally posted by rexx View Post
    1. How long can I wait before contacting HMRC regarding electing to pay charge over 3 years ?
    2. Can I just sit tight contact HMRC before Sept 2020.?
    I don't know the actual mechanics of how you elect to pay over the 3 years. (Has HMRC even explained this yet?)

    But, prior to Sept 2020, you would need to amend your 2018/19 return to include 1/3rd of the loans and then pay the additional tax & NI.
    Scoots still says that Apr 2020 didn't mark the start of a new stock bull market.

    Comment


      #3
      Originally posted by DealorNoDeal View Post
      I don't know the actual mechanics of how you elect to pay over the 3 years. (Has HMRC even explained this yet?)

      But, prior to Sept 2020, you would need to amend your 2018/19 return to include 1/3rd of the loans and then pay the additional tax & NI.

      In the letter they send they said guidance on how to elect to will be published in early 2020.
      I guess I just wait and see.

      Comment


        #4
        Originally posted by rexx View Post
        Current Status:
        1. I have loans in 2018-19,2019-20
        2. Umbrella company went into liquidation (CVL) in Jan 2020. Not really relevant in HMRC world
        3. HMRC sent me letter 2 weeks ago regarding Loan Charge "Steps I need to take since I am not in settlement talks'. I assume they have all details regarding my loans.
        4. I have already submitted my 2018-19 SA in Dec 2019 (without loans declared).

        Plan:
        I have work out what tax + ni I need to pay as part of the Loan charge and would like to pay these over 3 years.
        But I am also want to wait as long as possible in case the Liquidators request me to pay back loan amounts.

        Questions:

        1. How long can I wait before contacting HMRC regarding electing to pay charge over 3 years ? YOu need to submit your amended 18/19 tax return before 30/9/20
        2. Can I just sit tight contact HMRC before Sept 2020.?
        Your 18/19 return just deals with the loan charge and that means all loans outstanding at 5/4/19.

        So the 19/20 loans are not subject to the loan charge. Instead HMRC argue that the loans are taxable under general principles and/or Part 7A.

        If you chose to believe that you will need to include loans as income in the 19/20 tax return. Tax will fall due no later than 31/1/21.

        If you chose not to, you need a reason - preferably many reasons - why not and be prepared for a fight.
        Best Forum Adviser & Forum Personality of the Year 2018.

        (No, me neither).

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