Settlement figure expense question Settlement figure expense question
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  1. #1

    Nervous Newbie


    Join Date
    Mar 2017
    Posts
    3

    Default 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. #2

    Should post faster


    Join Date
    Apr 2016
    Posts
    134

    Default

    Quote 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.

  3. #3

    Should post faster


    Join Date
    Mar 2013
    Posts
    103

    Default

    Quote 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

  4. #4

    Should post faster


    Join Date
    Apr 2016
    Posts
    134

    Default

    Quote 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".

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