Originally posted by luxCon
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Settlement -vs- loan charge
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merely at clientco for the entertainment -
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Originally posted by eek View PostWho is SAM? And why do you take their advice rather than HMRC's?
I think we all know that his statement meant tax year rather than when the loan agreement was signed. We all know who SAM is and his recomendations.Comment
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Originally posted by lowpaidworker View PostOK lets not now all get political.
I think we all know that his statement meant tax year rather than when the loan agreement was signed. We all know who SAM is and his recomendations.Comment
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Originally posted by Paralytic View PostI had no idea who SAM was.Comment
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Originally posted by luxCon View PostCan someone who knows clarify if I entered a loan agreement before 9th Dec 2010, but continued to get paid under that agreement after this date, am I liable to the LC on any of the loans, only those after 9th Dec or all of the loans under that agreement?
SAM's recommendation says "I therefore conclude that the Loan Charge should not apply to loans entered into by either individuals or employers before 9th December 2010" - To me that could mean that I am not liable to pay LC on loans received on and after 9th Dec if the agreement entered before
However HMRC site says "If you were employed when you received a loan, the loan charge applies to outstanding loans made between 9 December 2010 and 5 April 2019." - This to me says I am liable to that portion of the payments made to me on and after 9th DecComment
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Originally posted by lowpaidworker View PostOK lets not now all get political.
I think we all know that his statement meant tax year rather than when the loan agreement was signed. We all know who SAM is and his recomendations.Last edited by eek; 16 September 2020, 15:09.merely at clientco for the entertainmentComment
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Originally posted by luxCon View PostDoes anyone who knows what they talking about provide an answer to the above please?
Given however that HMRC could (and indeed often do) regard every individual payment as a separate loan, I would tend towards the view that any money received on or after 9 December 2010 needs to be included.Last edited by eek; 16 September 2020, 15:24.merely at clientco for the entertainmentComment
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Originally posted by luxCon View PostCan someone who knows clarify if I entered a loan agreement before 9th Dec 2010, but continued to get paid under that agreement after this date, am I liable to the LC on any of the loans, only those after 9th Dec or all of the loans under that agreement?
SAM's recommendation says "I therefore conclude that the Loan Charge should not apply to loans entered into by either individuals or employers before 9th December 2010" - To me that could mean that I am not liable to pay LC on loans received on and after 9th Dec if the agreement entered before
However HMRC site says "If you were employed when you received a loan, the loan charge applies to outstanding loans made between 9 December 2010 and 5 April 2019." - This to me says I am liable to that portion of the payments made to me on and after 9th Dec
In practical terms, almost all loan agreements written and signed before 9th December 2010 were terminated very shortly after that date - or sometimes well after that date but backdated - and I cannot think of one of the 120 odd schemes I've researched which used the same agreement much after March 2011.
Further some loan agreements worked in a similar way to "master/servant" agreements. In other words the "master" agreement had all the terms and conditions and the "servant" agreement was prepared for each drawdown. Does that result in an agreement being pre 9/12/10 or is it the date of each servant agreement?
I have a view on that but I guarantee that HMRC does not and they will be keying everything off date money was paid.Best Forum Adviser & Forum Personality of the Year 2018.
(No, me neither).Comment
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FT loan charge article
Originally posted by eek View PostI could transform that into a flow chart if completely necessary but I think it's clear enough for everyone.
The direct link is here:
Subscribe to read | Financial Times
If you are not a subscriber it can be accessed by googling "FT loan charge" clicking "news" and hitting the top link.Comment
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