The loan charge is NOT a settlement "option" The loan charge is NOT a settlement "option" - Page 5
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  1. #41

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    Quote Originally Posted by regron View Post
    Ask for the closure notice stating no more tax due. Otherwise what they said is worth Jack.
    That's what I plan to do

  2. #42

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    Quote Originally Posted by EBTContractor View Post
    That's what I plan to do
    If the LC is paid then they may eventually get round to review the open enquires and close, however if they deem further tax is due (based on liability for ‘settlement’) they will no doubt come after you.

  3. #43

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    Quote Originally Posted by Iter View Post
    If the LC is paid then they may eventually get round to review the open enquires and close, however if they deem further tax is due (based on liability for ‘settlement’) they will no doubt come after you.
    Yes that's what I imagine will happen - happy to close enquiry provided you pay a difference of sorts.

    You can then argue and the whole thing starts all over again.

  4. #44

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    I have submitted my Loan via my SATR 18/19. I also did some quick tallying up. The difference between the Loan Charge and tax at the time for these years is about £800 less in favour of LC. Those numbers include back dated interest.

    Its quite easy to do as all you need is numbers that were calculated on your SATR. A good website that calculates paye. (I used this one Income tax calculator: Find out your take-home pay - MSE)

    On HMRC is a list of histrocial interest rates. Plug those in based on 31 Jan of the year the tax should have been paid. Diff the two. Its not difficult and should give those that settled via LC some piece of mind if HMRC come back after you for more.

    Next step is to try and get closure notices.... that will be painful i guess

  5. #45

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    Don't forget the interest on the underlying tax continues to grow until the enquiry is closed.
    STRENGTH - "A river cuts through rock not because of its power, but its persistence"

  6. #46

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    Quote Originally Posted by regron View Post
    Don't forget the interest on the underlying tax continues to grow until the enquiry is closed.
    One thing to point out though which I believe was discussed before, if settlement is signed and sealed and paid, that would be closure to the open Enq. Even though you may not receive a letter/correspondence to confirm that?

    I wouldn’t want someone to come back a few years later asking for some more interest because an admin process was not followed....

  7. #47

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    If you sign a settlement contract, that is your confirmation that all is closed and will not be opened again.
    Best Forum Adviser & Forum Personality of the Year 2018.

    (No, me neither).

  8. #48

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    Quote Originally Posted by regron View Post
    Don't forget the interest on the underlying tax continues to grow until the enquiry is closed.
    So interest keeps accruing even if you've:

    1. Paid up under LC?
    2. Stated your intention to settle pre and post 2010 years?

  9. #49

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    Settlement iis exactly that, as Webberg posts above. If however you still have any unsettled, open years, the underlying tax still needs resolving and until that is resolved, interest will continue to accrue.

    Example:

    Settled 07-10 = all done and closed.

    Paid loan charge on open years 11-13 = payment on account but enquiry still ongoing. Once thr underlying tax is resolved, you will have to pay any difference. However, if you have somehow overpaid, you will get no refund.
    STRENGTH - "A river cuts through rock not because of its power, but its persistence"

  10. #50

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    I think some people (not just on here) are getting settlement vs paying the loan charge mixed up thinking paying the LC closes an open enquiry which it doesn't.
    Quote Originally Posted by Iter View Post
    One thing to point out though which I believe was discussed before, if settlement is signed and sealed and paid, that would be closure to the open Enq. Even though you may not receive a letter/correspondence to confirm that?

    I wouldn’t want someone to come back a few years later asking for some more interest because an admin process was not followed....
    STRENGTH - "A river cuts through rock not because of its power, but its persistence"

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