Anyone filing a 2018/19 tax return for the LC, based on the advice of a tax advisor

[webberg]

I'm guessing what you meant is, "will HMRC still expect you to pay the LC if your loans are direct from an employer".

I doubt HMRC will concede that such loans are outwith the LC even though, strictly speaking, the LC only applies to 3rd party loans.

If I had direct employer loans, I might be tempted to claim the LC doesn't apply and see what HMRC's response is.

HMRC will point to GAAR opinions from last October which say that the third party requirement is "not what Parliament intended".

How do you argue that away?

[lowpaidworker]

I'm guessing what you meant is, "will HMRC still expect you to pay the LC if your loans are direct from an employer".

I doubt HMRC will concede that such loans are outwith the LC even though, strictly speaking, the LC only applies to 3rd party loans.

If I had direct employer loans, I might be tempted to claim the LC doesn't apply and see what HMRC's response is.

I did that. Whilst i declared all loans last september as part of that reporting requirement and made clear who I was emplyed by and who the loans were from I also sent them a mail direct from my old emplyer that said the loans to me were outside the loan charge and therefore not in scope of the Loan Charge. I added I no longer work for this employer but can you HMRC opine on this please. That was nine months ago. no reply

[DealorNoDeal]

HMRC will point to GAAR opinions from last October which say that the third party requirement is "not what Parliament intended".

How do you argue that away?

I guess you can't.

[lowpaidworker]

HMRC will point to GAAR opinions from last October which say that the third party requirement is "not what Parliament intended".

How do you argue that away?

and that is what I expect from HMRC when they do respond.

[webberg]

I guess you can't.

You can and this in the present context is perhaps where the value of a professional starts to be felt.

The general concepts of a defensive strategy are all here in these threads but to put them into a coherent plan that does not stumble at the first obstacle is where you need some help.

Here is where you should be questioning whichever tax adviser you speak with.

If you cannot understand what they are saying or you think it's all bulltulip then walk away.

you cannot go into what will be a rollercoaster of a ride with HMRC not understanding the risks as well as rewards because that is a sure fire way of you feeling by turns, stupid, foolish, angry, resentful, bitter and ultimately embarrassed. none of these are positive.

[DealorNoDeal]

You can and this in the present context is perhaps where the value of a professional starts to be felt.

It gives me a real sinking feeling just the thought of having to fight HMRC on both the LC and the underlying tax dispute.

Years and years of unending worry and uncertainty. That is going to leave its scars. You could easily spend a good portion of your adult life mired in this crap.

It's easy for HMRC, the lawyers and tax professionals; it's just a job. What does it matter if it drags on for 5, 10 or 20 years. It's a bit different if your way of life is hanging in the balance.

I really don't envy anyone who is caught between the rock (bankruptcy) and the hard place (fighting HMRC).

[stonehenge]

It's easy for HMRC, the lawyers and tax professionals; it's just a job. What does it matter if it drags on for 5, 10 or 20 years.

Oh it matters alright.

The longer it goes on, the more they earn in fees.

[ns1]

Oh it matters alright.

The longer it goes on, the more they earn in fees.

Aye, well that suits me just fine. Happy to keep paying the subs to keep HMRC at bay for as long as possible until I retire in 8 years time.