Settlement deadline 30th September 2020 Settlement deadline 30th September 2020
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  1. #1

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    Default Settlement deadline 30th September 2020

    There are some posts here about the claimed/alleged deadlines being mentioned by HMRC in their recent correspondence.

    Do NOT ignore these dates of your intention is to settle.

    Some background.

    The settlement terms of Nov 17 came with a deadline to register. Although this was extended several times, the last deadline was 5th April 2019.

    Failing to register (and send details) for the settlement before that date means that HMRC is NOT obliged to offer the Nov 17 terms. Instead if you still wish to settle then your terms will be those applying from August 2020.

    The main difference between the two is the loan charge process.

    If you fail to complete a settlement before the end of September, HMRC expect you to disclose for loan charge and pay the liability. As and when you then settle after that time the amount paid will be part of the equations.

    So, what is happening now, is that HMRC is processing settlements and as each stage is reached HMRC is in contact asking for return of details, queries, agreements to calculations, signed Letter of Offer, before a given date.

    That date is no doubt linked to some form of internal plan that matches resources with processes and actions but which is not public.

    If you meet all the deadlines and still fail to have everything agreed by the end of the month, you have a decent chance of being able to stall the loan charge perhaps.

    Equally HMRC is being quite firm on these deadlines and it's entirely possible that delaying and missing deadlines, deliberately or not, will result in Nov 17 terms being withdrawn, loan charge becoming due and Aug 20 settlement terms being the only ones available.

    (Given that many Nov 17 settlements seem to have interest calculations from due date to Sep 16, I suggest that the Aug 20 terms may not.)

    In summary.

    Feel free to ignore the deadlines, game the process and delay for as long as possible, but the quid pro quo is that HMRC may decide to close the door on anything not finally agreed on 30th September.

    If so, the loan charge falls due (unless you are following a plan that claims to deal with that).

    In our experience the settlement process is anything but smooth and seamless and HMRC has made a complete hash of certain aspects of it and has been (and is) slow at responding. Frustrating as that may be, if you ignore the deadlines and the result is no agreement by the end of the month, you may not be able to settle.
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  2. #2

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    In real money terms what will this mean?

    2 people with same £100K loans from 2014 (or pick anther date)

    One pays now

    The other decides not to for 6 months

    What extra liability are we looking at ? Is it buttons or real money?




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  3. #3

    Still gathering requirements...


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    Default

    Quote Originally Posted by webberg View Post
    There are some posts here about the claimed/alleged deadlines being mentioned by HMRC in their recent correspondence.

    Do NOT ignore these dates of your intention is to settle.

    Some background.

    The settlement terms of Nov 17 came with a deadline to register. Although this was extended several times, the last deadline was 5th April 2019.

    Failing to register (and send details) for the settlement before that date means that HMRC is NOT obliged to offer the Nov 17 terms. Instead if you still wish to settle then your terms will be those applying from August 2020.

    The main difference between the two is the loan charge process.

    If you fail to complete a settlement before the end of September, HMRC expect you to disclose for loan charge and pay the liability. As and when you then settle after that time the amount paid will be part of the equations.

    So, what is happening now, is that HMRC is processing settlements and as each stage is reached HMRC is in contact asking for return of details, queries, agreements to calculations, signed Letter of Offer, before a given date.

    That date is no doubt linked to some form of internal plan that matches resources with processes and actions but which is not public.

    If you meet all the deadlines and still fail to have everything agreed by the end of the month, you have a decent chance of being able to stall the loan charge perhaps.

    Equally HMRC is being quite firm on these deadlines and it's entirely possible that delaying and missing deadlines, deliberately or not, will result in Nov 17 terms being withdrawn, loan charge becoming due and Aug 20 settlement terms being the only ones available.

    (Given that many Nov 17 settlements seem to have interest calculations from due date to Sep 16, I suggest that the Aug 20 terms may not.)

    In summary.

    Feel free to ignore the deadlines, game the process and delay for as long as possible, but the quid pro quo is that HMRC may decide to close the door on anything not finally agreed on 30th September.

    If so, the loan charge falls due (unless you are following a plan that claims to deal with that).

    In our experience the settlement process is anything but smooth and seamless and HMRC has made a complete hash of certain aspects of it and has been (and is) slow at responding. Frustrating as that may be, if you ignore the deadlines and the result is no agreement by the end of the month, you may not be able to settle.

    If every deadline has been met on my part and its a case of HMRC getting the calculations incorrect (they have admitted their error and I have asked them to provide a new settlement calculation) then having to wait 5 months for a reply and it goes past the 30th September deadline without a response then what am I supposed to do?! Surely I cant then be penalised for not meeting the settlement deadline...

  4. #4

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    Quote Originally Posted by dangermaus View Post
    If every deadline has been met on my part and its a case of HMRC getting the calculations incorrect (they have admitted their error and I have asked them to provide a new settlement calculation) then having to wait 5 months for a reply and it goes past the 30th September deadline without a response then what am I supposed to do?! Surely I cant then be penalised for not meeting the settlement deadline...
    Put a complaint in to HMRC about their lack of response.

  5. #5

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    Quote Originally Posted by dangermaus View Post
    it goes past the 30th September deadline without a response then what am I supposed to do?! Surely I cant then be penalised for not meeting the settlement deadline...
    There is no leeway here for errors/delays on behalf of HMRC.

    I suggest that you create an audit trail by sending HMRC a letter - recorded delivery - detailing their delays.

    I think you then have a chance of going beyond 30th Sep.

    However - what are you going to do about the loan charge disclosure and liability on 30 Sep?
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  6. #6

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    Quote Originally Posted by Delendog View Post
    Put a complaint in to HMRC about their lack of response.
    And that helps how?
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  7. #7

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    Quote Originally Posted by webberg View Post
    And that helps how?
    In my case they found a complaint in my favor promised to respond to all my queries within 10 working days and actually followed up and responded. They agreed with my calculation of tax which I'd also included 10% loan amount allowance for expenses and now a caseworker is finally being allocated. That is how it helped.

  8. #8

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    Quote Originally Posted by Delendog View Post
    In my case they found a complaint in my favor promised to respond to all my queries within 10 working days and actually followed up and responded. They agreed with my calculation of tax which I'd also included 10% loan amount allowance for expenses and now a caseworker is finally being allocated. That is how it helped.
    Well it worked out well for you.

    The OP is now though 21 working days from the final deadline and an allocated case worker requiring half of that time or more is unlikely to help.
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  9. #9

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    Quote Originally Posted by webberg View Post
    Well it worked out well for you.

    The OP is now though 21 working days from the final deadline and an allocated case worker requiring half of that time or more is unlikely to help.
    Can you just apply 10% reduction to each loan amount without proof of payment to reduce the settlement. I thought you had to proove these payments were made ?

  10. #10

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    Quote Originally Posted by Delendog View Post
    In my case they found a complaint in my favor promised to respond to all my queries within 10 working days and actually followed up and responded. They agreed with my calculation of tax which I'd also included 10% loan amount allowance for expenses and now a caseworker is finally being allocated. That is how it helped.
    10% off the loan amount is a good result.
    were you classed as self employed under the scheme,
    i had a few years where i was classed as self employed and then scheme was changed to make me employee. Im wondering if the expenses request can be applied to both scheme types.

    Many thanks

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