40,000 people to be hit by loan charge

[DonkeyRhubarb]

Just think what you could do with a few £m.

• Hire a crack team of tax QCs to find holes and ways around the loan charge legislation (where there's a will, there's a f***ing way)
• Force HMRC to issue Closure Notices for the schemes and drag them, kicking and screaming, to the FTT
• Launch a JR with the best QCs money can buy, not that it will probably achieve anything, but just to torpedo HMRC's timetable for collecting any of the money, and buy time for cases to go to the FTT
• Take out adverts in the National Press to recruit more members to the cause
• etc etc

The above would be HMRC's worst nightmare.

But it's all a dream, of course, because no-one will do anything much.

[DotasScandal]

Amen to all of the above. I can guarantee that HM's Highway Robbers would absolute hate it.
They are only as strong as we are disunited.

It's correct that contractors by and large are thick-skulled when it comes to working together.
But necessity may change that.

[ChimpMaster]

Just reading out of interest and wondering what is meant by an "outstanding loan". Surely if you have such a loan then your accountant should report it on your Tax Return every year, in which case you have to pay BIK on it for life - because the loan is not repaid. So HMRC can identify you've had an 'outstanding loan' since whatever time, because it's always reported on your Return.

Is that correct?

[Delendog]

Just reading out of interest and wondering what is meant by an "outstanding loan". Surely if you have such a loan then your accountant should report it on your Tax Return every year, in which case you have to pay BIK on it for life - because the loan is not repaid. So HMRC can identify you've had an 'outstanding loan' since whatever time, because it's always reported on your Return.

Is that correct?

No. BIK doesn't apply if you are no longer employed by the original loan provider.

[davetza]

The current rules state you only need to keep documents related to tax records for 5 years from the relevant return. Does anyone have any idea how disputes on the amounts of tax owed are going to be resolved when a lot of the documents detailing the amounts involved in these loans will not be around.

[Invisiblehand]

Just think what you could do with a few £m.

• Hire a crack team of tax QCs to find holes and ways around the loan charge legislation (where there's a will, there's a f***ing way)
• Force HMRC to issue Closure Notices for the schemes and drag them, kicking and screaming, to the FTT
• Launch a JR with the best QCs money can buy, not that it will probably achieve anything, but just to torpedo HMRC's timetable for collecting any of the money, and buy time for cases to go to the FTT
• Take out adverts in the National Press to recruit more members to the cause
• etc etc

The above would be HMRC's worst nightmare.

But it's all a dream, of course, because no-one will do anything much.

Isn't BG doing some of this?

[DotasScandal]

Isn't BG doing some of this?

BG hasn't won the lottery yet.

[Whysoserious]

BG hasn't won the lottery yet.

There are a few schemes putting the fight to HMRC on a number of fronts and have fighting funds running into the millions. HMRC will be challenged in court on all fronts.

The crazy part is you'll have an HMRC legal team in court room 1 arguing that these are NOT loans and should be taxed as income.

Then in court room 2 you'll have an HMRC legal team arguing these ARE loans and therefore taxable under the new legislation.

The simple fact remains however if, through the courts the schemes are found to be 100% loans and not disguised remuneration then HMRC don't get a penny. The loan charge applies to disguised remuneration loans.

[flamel]

I don't think the 40,000 includes self-employed loan schemes, like Montpelier's, which come under a separate measure.

https://www.gov.uk/government/public...eration-update

Impact on individuals, households and families

This measure is expected to affect up to 40,000 individuals who have entered into disguised remuneration avoidance schemes. Some of these individuals will be unable to repay the loans, agree a settlement with HMRC before 5 April 2019, or pay the loan charge arising on 5 April 2019. The government anticipates that some of these individuals will become insolvent as a result.

This measure is not expected to have a material impact on family formation, stability or breakdown.

I must remember to tell my family that my insolvency won't have a material impact. I may need to surround myself with sandbags and wear a suit of armour when I have that conversation. Maybe I could invite someone from HMRC round to help me explain it to them?

[DotasScandal]

The crazy part is you'll have an HMRC legal team in court room 1 arguing that these are NOT loans and should be taxed as income.
Then in court room 2 you'll have an HMRC legal team arguing these ARE loans and therefore taxable under the new legislation.

I'm sure they see no problem with this whasoever.
"Have cake and eat it" is all the rage in Brexit Britain.