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Settlement figure expense question

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    Settlement figure expense question

    Hi,
    I have read few posts mentioning 10% reduction of settlement figure based on expenses.
    Is the 10% based on loan amount each year you were in the scheme or is it 10% reduction in the settlement tax figure?
    Say.. disguised renumeration scheme was used for 3 years totalling to gross amounts A , B and C. The settlement figure is amount X.
    Is the reduction calculated after reducing amount A , B and C by 10% and calculating the tax due on revised amounts ?
    Or
    Is the 10% reduction of X?

    I understand HMRC may not be applying this to everyone but just want to understand the calculation done.
    Thanks,
    Akira.

    #2
    Originally posted by akiras View Post
    Hi,
    I have read few posts mentioning 10% reduction of settlement figure based on expenses.
    Is the 10% based on loan amount each year you were in the scheme or is it 10% reduction in the settlement tax figure?
    Say.. disguised renumeration scheme was used for 3 years totalling to gross amounts A , B and C. The settlement figure is amount X.
    Is the reduction calculated after reducing amount A , B and C by 10% and calculating the tax due on revised amounts ?
    Or
    Is the 10% reduction of X?

    I understand HMRC may not be applying this to everyone but just want to understand the calculation done.
    Thanks,
    Akira.
    It is applied to the loan values in each year.

    Comment


      #3
      Originally posted by Delendog View Post
      It is applied to the loan values in each year.
      Which is wrong

      if you have 10% expenses it not just the loan value that should be taken into account, it's the loan value + salary.
      Tell HMRC that expenses aren't just conveniently linked to the value of the loan - it's your entire income for the year

      It's despicable that they are only applying this to people who ask

      Comment


        #4
        Originally posted by demby View Post
        Which is wrong

        if you have 10% expenses it not just the loan value that should be taken into account, it's the loan value + salary.
        Tell HMRC that expenses aren't just conveniently linked to the value of the loan - it's your entire income for the year

        It's despicable that they are only applying this to people who ask
        If only this was the only thing that "was wrong".

        Comment

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