Settling is more expensive that paying the 2019 loan charge
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    PS. If you can arrange to earn nothing in 2018/19, then the loan charge works out even better.

    That's probably not realistic for many people, which is why I gave examples of 40k and 100k.

    There may be ways to reduce it even more by utilizing tax reliefs eg. making pension contributions in 2018/19.

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    Quote Originally Posted by Loan Ranger View Post
    PS. If you can arrange to earn nothing in 2018/19, then the loan charge works out even better.
    Certainly advantageous for those who have moved overseas.

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    Default Is the theory?

    That post 6 April 2017 everyone on HMRC's radar receives a letter about the 2019 charge, which has two options:

    A. Settle all years now ex NIC - but the years will include promoter fees at ~10% and interest
    B. Settle all years in 2019 inc NIC - but not included interest and promoter fees

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    Quote Originally Posted by Dylan View Post
    I guess until we know if the above is true regarding HMRC coming back if they get less than they would under settlement it is all up in the air.
    Based on my calculations, if they did that, it would mean they'd have to continue to pursue virtually everyone who pays the charge.

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    Quote Originally Posted by EBTContractor View Post
    That post 6 April 2017 everyone on HMRC's radar receives a letter about the 2019 charge, which has two options:

    A. Settle all years now ex NIC - but the years will include promoter fees at ~10% and interest
    B. Settle all years in 2019 inc NIC - but not included interest and promoter fees
    (B) is definitely right because the charge is tax+nics on the amount of outstanding loans, irrespective of whether loan tax years are open or closed.

    (A) is up in the air. It is also not known what the terms would be for closed years.

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    Quote Originally Posted by Loan Ranger View Post
    Based on my calculations, if they did that, it would mean they'd have to continue to pursue virtually everyone who pays the charge.
    For me it might make sense to settle one year to keep below the 150k threshold, leaving the earlier two (well one and a half) for the loan charge, and then not earn anything else for that year to minimise tax on those 2.

    That is if I can't get them to court first to make them prove the money is actually owed.

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    Quote Originally Posted by Loan Ranger View Post
    (B) is definitely right because the charge is tax+nics on the amount of outstanding loans, irrespective of whether loan tax years are open or closed.
    Also not clear if closed means as in no discovery ever issued, or if discovery issued, year opened and then closed.

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    Quote Originally Posted by EBTContractor View Post
    Also not clear if closed means as in no discovery ever issued, or if discovery issued, year opened and then closed.
    Have HMRC really closed years? By issuing a formal closure notice with nothing additional to pay?

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    FOI request to try and nudge them.

    https://www.whatdotheyknow.com/reque..._the_2019_loan

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    Quote Originally Posted by Loan Ranger View Post
    Have HMRC really closed years? By issuing a formal closure notice with nothing additional to pay?
    In my case they have. Formally closed with nothing to pay.

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