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Latest Settlement Offer

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    Latest Settlement Offer

    I have the choice of paying the Loan Charge £5000, or settle all the open years £100,000

    Lets suppose I opt for the Loan Charge. Now even though that the majority of the other years are before December 2010 I'm apparently still liable for the remaining $95,000. Yes Morse's review was a complete whitewash.

    Does any one know what the likely course of action is from this point and how long it would likely to take.

    At what stage can you expect to be in front of a judge to explain that HMRC incompetency, inaction and neglect has resulted in this mess.

    What would be the odds of convincing the judge and how much would this all cost me win or lose

    #2
    If you pay the LC then sit tight, and do nothing, it could be many years before you'd have to pay.

    God knows how HMRC are going to deal with tens of thousands of open cases across dozens of different schemes*.

    I suppose there's always an outside chance that one of the groups pursuing litigation might defeat HMRC, which you may be able to benefit from.

    * that's why HMRC came up with the LC; now they're back to square one (for pre-Dec2010 loans)
    Last edited by DealorNoDeal; 31 May 2020, 11:31.
    Scoots still says that Apr 2020 didn't mark the start of a new stock bull market.

    Comment


      #3
      PS...

      If you've got the money put on one side to pay them, you could invest some of it and see if you can grow it.

      They're only charging 2.6% (BoE base + 2.5) late payment interest, and rates are likely to stay low for some considerable time.

      You could treat it as a cheap loan.
      Scoots still says that Apr 2020 didn't mark the start of a new stock bull market.

      Comment


        #4
        Settle post Dec 2010 year only ?

        Originally posted by demby View Post
        I have the choice of paying the Loan Charge £5000, or settle all the open years £100,000

        Lets suppose I opt for the Loan Charge. Now even though that the majority of the other years are before December 2010 I'm apparently still liable for the remaining $95,000. Yes Morse's review was a complete whitewash.

        Does any one know what the likely course of action is from this point and how long it would likely to take.

        At what stage can you expect to be in front of a judge to explain that HMRC incompetency, inaction and neglect has resulted in this mess.

        What would be the odds of convincing the judge and how much would this all cost me win or lose
        Given the LC figure you quote I assume your post Dec 2010 loans are less than £25K ? Presumaby your settlement figure for the post Dec 2010 years are correspondingly low, I believe you have the option of settling your post 2010 years only and avoid the LC , and decide seperately what to do about pre Dec 2010 loans.
        If you do decide to wait for HMRC to take action on your pre Dec 2010 loans, I don't think explaining how HMRC incompetency, inaction and neglect has resulted in this mess will actually be much of a defence, so suggest that you will need a tax advisor.

        Comment


          #5
          Originally posted by Albert49 View Post
          Given the LC figure you quote I assume your post Dec 2010 loans are less than £25K ? Presumaby your settlement figure for the post Dec 2010 years are correspondingly low, I believe you have the option of settling your post 2010 years only and avoid the LC , and decide seperately what to do about pre Dec 2010 loans. Good point, although HMRC may say it's too late to settle and avoid the LC.
          If you do decide to wait for HMRC to take action on your pre Dec 2010 loans***, I don't think explaining how HMRC incompetency, inaction and neglect has resulted in this mess will actually be much of a defence, so suggest that you will need a tax advisor. If only!
          *** depending on your age, you could be 6' under by the time HMRC get around to it.
          Scoots still says that Apr 2020 didn't mark the start of a new stock bull market.

          Comment


            #6
            what's the best way to work out the cost of settling vs not settling? for example, I've an offer of 60k - sign in two weeks to settle and sign away any recourse....I can't bring myself to sign this, on the very slight chance the current proposed amendments to Finance Bill get through ( I do realise that the tax years will still remain open). I read that the charge can be split across 3 years...is that 20k a year added to my income tax, thru self assessment? I've returned to perm employment now...wouldn't want it to be taken at source etc.

            Comment


              #7
              Originally posted by DanJackiels View Post
              what's the best way to work out the cost of settling vs not settling? for example, I've an offer of 60k - sign in two weeks to settle and sign away any recourse....I can't bring myself to sign this, on the very slight chance the current proposed amendments to Finance Bill get through ( I do realise that the tax years will still remain open). I read that the charge can be split across 3 years...is that 20k a year added to my income tax, thru self assessment? I've returned to perm employment now...wouldn't want it to be taken at source etc.
              The loan charge (LC) won't work out the same as the settlement figure.

              The settlement figure is based on taxing the loans in the years you received them, and there will also be late payment interest.

              The LC, split across 3 years, adds total loans/3 to your income for 2018/19, 19/20 and 20/21. There is no interest on the LC. And, yes, you declare the loans through self-assessment.
              Scoots still says that Apr 2020 didn't mark the start of a new stock bull market.

              Comment


                #8
                Originally posted by DealorNoDeal View Post
                The loan charge (LC) won't work out the same as the settlement figure.

                The settlement figure is based on taxing the loans in the years you received them, and there will also be late payment interest.

                The LC, split across 3 years, adds total loans/3 to your income for 2018/19, 19/20 and 20/21. There is no interest on the LC. And, yes, you declare the loans through self-assessment.

                thank you for the above. settling certainly seems the best option....if i can bring myself to do it.

                Comment


                  #9
                  Apologies if I am posting in the wrong place. But I am hoping to settle also.
                  However, I have got some colleagues who advised their figures were recalculated (knocked off a few grand) by providing 'expenses' to HMRC. I am thinking of doing the same. However, not sure if it applies to me as I went back home most nights and they worked away from home.

                  My question is, can i still claim food and travel expenses to bring my settlement figure down? I am sure I read about a lady somewhere who said she did successfully but I cannot find that thread. Many thanks

                  Comment


                    #10
                    expenses

                    Originally posted by I am tired TIRED View Post
                    Apologies if I am posting in the wrong place. But I am hoping to settle also.
                    However, I have got some colleagues who advised their figures were recalculated (knocked off a few grand) by providing 'expenses' to HMRC. I am thinking of doing the same. However, not sure if it applies to me as I went back home most nights and they worked away from home.

                    My question is, can i still claim food and travel expenses to bring my settlement figure down? I am sure I read about a lady somewhere who said she did successfully but I cannot find that thread. Many thanks
                    Not sure about Food, but I submitted mileage expenses (45p a mile for first 10,000, 25p for remaining), for a couple of my later years (in a self employed scheme) and successfully got them subtracted from my loan amounts, however I did this when I first supplied my figures last year, not sure what HMRC' response will be now, but worth asking I would think.

                    Comment

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