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Forced into Loan Charge

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    Forced into Loan Charge

    Can you use PA on the loan charge?

    no other income loan of 50k

    so minus PA 12k

    38k taxable

    Right?
    Last edited by wattsy; 9 August 2020, 03:03.

    #2
    If I moved to Asia several years ago, I would sleep well and forget all about it


    Sent from my iPhone using Contractor UK Forum

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      #3
      Originally posted by wattsy View Post
      Can you use PA on the loan charge?

      no other income loan of 50k

      so minus PA 12k

      38k taxable

      Right?
      Yes you can

      This is where it's a completely wrong as it's all taxed on a single year with just one PA amount. Loans of 2 years should have a PA for each year.

      Comment


        #4
        Originally posted by demby View Post
        Yes you can

        This is where it's a completely wrong as it's all taxed on a single year with just one PA amount. Loans of 2 years should have a PA for each year.
        Total loans can be spread over 3 tax years, therefore making use of 3 PA’s

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          #5
          Interesting.

          If you are not UK resident then usually a PA is not available.
          Best Forum Adviser & Forum Personality of the Year 2018.

          (No, me neither).

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            #6
            Originally posted by GhostofTarbera View Post
            If I moved to Asia several years ago, I would sleep well and forget all about it


            Sent from my iPhone using Contractor UK Forum
            Another pointless response. Please answer the valid question being asked or don't respond.

            Comment


              #7
              Originally posted by sdchater View Post
              Another pointless response. Please answer the valid question being asked or don't respond.
              Please go and pay for professional tax advice or deal with it.

              Comment


                #8
                Originally posted by webberg View Post
                Interesting.

                If you are not UK resident then usually a PA is not available.

                Tax on your UK income if you live abroad: Personal Allowance - GOV.UK

                Tax on your UK income if you live abroad

                You’ll get a Personal Allowance of tax-free UK income each year if any of the following apply:

                you hold a British passport
                you’re a citizen of a European Economic Area (EEA) country
                you’ve worked for the UK government at any time during that tax year

                You might also get it if it’s included in the double-taxation agreement between the UK and the country you live in.

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                  #9
                  So just to confirm, is it correct to assume that PA is available for 3 years if spreading the loan charge over 3 years worth of self assessment returns?

                  Comment


                    #10
                    Originally posted by Ozcontractor View Post
                    So just to confirm, is it correct to assume that PA is available for 3 years if spreading the loan charge over 3 years worth of self assessment returns?
                    Just be aware that paying the loan charge over one year or three does not settle the final liability.

                    You still have to reach some sort of agreement with HMRC.
                    Best Forum Adviser & Forum Personality of the Year 2018.

                    (No, me neither).

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