+ Reply to Thread
Page 2 of 13 FirstFirst 1 2 3 4 12 ... LastLast
Posts 11 to 20 of 130
  1. #11

    Still gathering requirements...


    Join Date
    Sep 2014
    Posts
    36
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    1

    Default

    Quote Originally Posted by neil99 View Post
    HMRC officials think every year EBT used will be under consideration irrespective including closed years if you've settled already. Obviously APN is a payment on account towards the final bill which will include interest.

    SO if for example 200k loans over 3 years from 2005-8 expect a tax bill north of 120k.

    Great isn't it :-(

    You could always join Big Group in the anticipation that we'll be able to negotiate a better deal with the tax man. But the bottom line is terrifying and will bankrupt thousands.
    Their website states: "all loans or debts from a disguised remuneration scheme will be taxed as earnings if they havenít already been fully taxed or repaid on or before 5 April 2019."


    If settling/paying APN isn't paying the "due" tax, what is?

  2. #12

    Still gathering requirements...


    Join Date
    Sep 2014
    Posts
    36
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    1

    Default

    Quote Originally Posted by neil99 View Post
    HMRC officials think every year EBT used will be under consideration irrespective including closed years if you've settled already. Obviously APN is a payment on account towards the final bill which will include interest.

    SO if for example 200k loans over 3 years from 2005-8 expect a tax bill north of 120k.

    Great isn't it :-(

    You could always join Big Group in the anticipation that we'll be able to negotiate a better deal with the tax man. But the bottom line is terrifying and will bankrupt thousands.
    Could you give a breakdown of that example? What calculation are you basing that on? Where does a 60% tax bill come in to it especially when one has already paid the tax via CLSO/APN?

  3. #13

    Contractor Among Contractors

    DotasScandal's Avatar
    Join Date
    May 2014
    Location
    Manchester
    Posts
    1,117
    Thanks (Given)
    125
    Thanks (Received)
    109
    Likes (Given)
    1288
    Likes (Received)
    352

    Default

    Quote Originally Posted by frodo View Post
    Could you give a breakdown of that example? What calculation are you basing that on? Where does a 60% tax bill come in to it especially when one has already paid the tax via CLSO/APN?
    At the risk of sounding like a broken record: an APN is not a final payment of anything, it's a payment "on account".

  4. #14

    Should post faster


    Join Date
    Feb 2015
    Posts
    113
    Thanks (Given)
    0
    Thanks (Received)
    8
    Likes (Given)
    0
    Likes (Received)
    20

    Default

    Quote Originally Posted by ireland2013 View Post
    I took up the CLSO as it was a small amount and paid tax and interest and have a letter stating that I have settled. - I have no other years in question - Are you stating HMRC will apply another charge to me in 2019?
    Any money paid out to you via EBT will attract a change of PAYE and NIC plus backdated interest. The tax will be on EBT loan amounts. Writing off the loans doesn't effect the charge. The other option is to pay back the loans in full.

    As Webberg says, that's all we know at the moment until the legislation is published.

  5. #15

    Still gathering requirements...


    Join Date
    Sep 2014
    Posts
    36
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    1

    Default

    Quote Originally Posted by DotasScandal View Post
    At the risk of sounding like a broken record: an APN is not a final payment of anything, it's a payment "on account".
    I get that. So they just take the APN money to settle the tax due, right? Job done, less interest and NIC etc. And I still don't get your theoretical 60% tax charge.

  6. #16

    Still gathering requirements...


    Join Date
    Mar 2013
    Posts
    21
    Thanks (Given)
    0
    Thanks (Received)
    1
    Likes (Given)
    3
    Likes (Received)
    1

    Default

    Quote Originally Posted by neil99 View Post
    Any money paid out to you via EBT will attract a change of PAYE and NIC plus backdated interest. The tax will be on EBT loan amounts. Writing off the loans doesn't effect the charge. The other option is to pay back the loans in full.

    As Webberg says, that's all we know at the moment until the legislation is published.
    But the CLSO stated no NIC would be charged ( if I remember correctly) - this is confusing - thought I had paid tax and interest and matter was finished with - only issue was possible IHT - which was trust specific related.

  7. #17

    Should post faster


    Join Date
    Feb 2015
    Posts
    113
    Thanks (Given)
    0
    Thanks (Received)
    8
    Likes (Given)
    0
    Likes (Received)
    20

    Default

    Quote Originally Posted by frodo View Post
    Could you give a breakdown of that example? What calculation are you basing that on? Where does a 60% tax bill come in to it especially when one has already paid the tax via CLSO/APN?
    Ok it's very rough calculation. But say if you had 70k loans each year from 2005/2008 (total loans is £210,000).

    You owe roughly 25k in PAYE and NIC per year = approx 75k. Add interest of approx 30% to that.

    That's approx £95,000 in tax due. From approx £210,000 in loans.

    I used https://listentotaxman.com/25000?yr=2005 to do my 'umble calculations.
    Last edited by neil99; 4th August 2016 at 13:16.

  8. #18

    Should post faster


    Join Date
    Feb 2015
    Posts
    113
    Thanks (Given)
    0
    Thanks (Received)
    8
    Likes (Given)
    0
    Likes (Received)
    20

    Default

    Quote Originally Posted by frodo View Post
    I get that. So they just take the APN money to settle the tax due, right? Job done, less interest and NIC etc. And I still don't get your theoretical 60% tax charge.
    I tried a calculation and it seems it's nearer 45%. Depending on circumstances etc.

  9. #19

    Still gathering requirements...


    Join Date
    Sep 2014
    Posts
    36
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    1

    Default

    Quote Originally Posted by neil99 View Post
    Ok it's very rough calculation. But say if you had 70k loans from 2005/2008 (total 210).

    You owe roughly 25k in PAYE and NIC per year = approx 75k. Add interest of approx 30% to that.

    That's approx £95,000 in tax due. From approx £210,000 in loans.

    I used https://listentotaxman.com/25000?yr=2005 to do my 'umble calculations.
    Yes but your post implies that you will be charged irrespective of tax paid via CLSO/APN (yes APN is POA, point is the money is there for HMRC to take if this charge becomes lawful).

  10. #20

    Should post faster


    Join Date
    Feb 2015
    Posts
    113
    Thanks (Given)
    0
    Thanks (Received)
    8
    Likes (Given)
    0
    Likes (Received)
    20

    Default

    Quote Originally Posted by ireland2013 View Post
    But the CLSO stated no NIC would be charged ( if I remember correctly) - this is confusing - thought I had paid tax and interest and matter was finished with - only issue was possible IHT - which was trust specific related.
    https://www.gov.uk/government/public...technical-note ...

    ":b.The loan is from an amount on which income tax has been accounted for in full, including all years settled under HMRCís recent settlement opportunities, before 5 April 2019"

    This para is vague but seems to suggest the charge will apply for closed years (if you have them). Open years settled under the CLSO should attract no further charges. I believe this is the interpretation HMRC have inferred too.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

Content Relevant URLs by vBSEO 3.6.0 ©2011, Crawlability, Inc.