New settlement terms New settlement terms
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  1. #1

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    Default New settlement terms

    Disguised remuneration settlement terms 2020 - GOV.UK

    Lots of new rules to get heads around here.

    Interesting (and possibly unlawful) twist here is that if the loan charge is paid AND the income from the DR scheme was less than £75k pa, then HMRC "will not collect" any further "tax" (almost certainly not tax in this case but interest).

    In effect saying that whilst an open enquiry will not be "closed", no further money will be due. (Para 6).

    That requires some further thought along with the rest of this document.
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  2. #2

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    I found the part around 'residual tax' interesting ! In the fact you 'could ' benefit, providing you are not involved in any litiagtion against HMRC !!!

    How very HMRC !!!
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  3. #3

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    Quote Originally Posted by webberg View Post
    Disguised remuneration settlement terms 2020 - GOV.UK

    Lots of new rules to get heads around here.

    Interesting (and possibly unlawful) twist here is that if the loan charge is paid AND the income from the DR scheme was less than £75k pa, then HMRC "will not collect" any further "tax" (almost certainly not tax in this case but interest).

    In effect saying that whilst an open enquiry will not be "closed", no further money will be due. (Para 6).

    That requires some further thought along with the rest of this document.
    What happened to paying the right amount of tax?
    Where did this £75k figure get made up from?
    Why is it dependent on not litigating? Are they scared of something?

  4. #4

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    They've always been scared, that's why the Loan Charge was invented once they lost the Rangers case, despite winning it !!
    Oh, and let's not forget the invention of APN's prior to the LC.
    All designed to circumvent litigation.
    Quote Originally Posted by Clairol View Post
    What happened to paying the right amount of tax?
    Where did this £75k figure get made up from?
    Why is it dependent on not litigating? Are they scared of something?
    Last edited by regron; 20th November 2020 at 19:12.
    STRENGTH - "A river cuts through rock not because of its power, but its persistence"

  5. #5

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    Default Residual Tax

    Quote Originally Posted by webberg View Post
    Disguised remuneration settlement terms 2020 - GOV.UK

    Lots of new rules to get heads around here.

    Interesting (and possibly unlawful) twist here is that if the loan charge is paid AND the income from the DR scheme was less than £75k pa, then HMRC "will not collect" any further "tax" (almost certainly not tax in this case but interest).

    In effect saying that whilst an open enquiry will not be "closed", no further money will be due. (Para 6).

    That requires some further thought along with the rest of this document.
    I settled my post 2011 years because I thought that there was no way of avoiding the Loan Charge, and if it was cheaper than settlement then the enquiry would remain open and I would have to pay the difference to end it.
    Now it obvious that duplicitous HMRC have conned me, if I had opted to pay the Loan Charge on at least some of those years and spread it over 3 years, I could have avoided the late payment interest they charged me, and offset the LC with a pension contribution

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    Webberg persistently said that the LC wasn't a resolution (which probably swayed some minds) whereas others said they couldn't see HMRC bothering with open years after having collecting the LC - it seems they were both partly right and partly wrong depending how much you took as loans.

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    I wonder how many people, who earned more than £75k pa, paid the LC?
    Scoots still says that Apr 2020 didn't mark the start of a new stock bull market.

  8. #8

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    Quote Originally Posted by Albert49 View Post
    I settled my post 2011 years because I thought that there was no way of avoiding the Loan Charge, and if it was cheaper than settlement then the enquiry would remain open and I would have to pay the difference to end it.
    Now it obvious that duplicitous HMRC have conned me, if I had opted to pay the Loan Charge on at least some of those years and spread it over 3 years, I could have avoided the late payment interest they charged me, and offset the LC with a pension contribution
    another iniquity to join the rest. I was in a similar position but settled only 1 year post 11
    You helped a lot of people here and elsewhere re the pension contributions questions albert. As others have indicated not sure very many will be able to benefit now from this concession.
    Last edited by QCApproved; 24th November 2020 at 11:06.

  9. #9

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    I've spoken to HMRC a number of times now and it does sound as long as you meet the below conditions no additional/residual tax is due:

    1. Below 75k paid out from 2010-2014
    2. Not litigating
    3. Paid loan charge

  10. #10

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    Quote Originally Posted by EBTContractor View Post
    1. Below 75k paid out from 2010-2014
    Wouldn't it be for the entire period covered by the LC ie. 9 December 2010 to 5 April 2016?

    In the document that webberg referred to above, it says:

    "the average annual income provided to the individual through a disguised remuneration scheme to the individual is £75,000 or less in each tax year"

    Which not only appears to contain a typo (repeat of "to the individual") but also this bit doesn't make sense:

    average annual income is £75,000 or less in each tax year
    Last edited by DealorNoDeal; 20th December 2020 at 08:53.
    Scoots still says that Apr 2020 didn't mark the start of a new stock bull market.

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