Link for HMRC rules on Foreign Currency Employee Loans?

[Earlyflash1]

Hi all,

My very old scheme supplier has, apparently, moved my loans into Zim$ and is offering me the chance to pay it off for a fiver.

As I remember the HMRC have had this loophole closed for years, but I can't find it on the HMRC site for love nor money. Even google is failing me.

Anyone got a link to the HMRC rulings on this stuff?

I'm desperately trying to extricate myself from this bunch of cowboys, but don't want to compromise my position by doing something rash.

[Grim Reaper]

http://www.hmrc.gov.uk/guidance/480.pdf
read section 17.

[Finkels]

Do you mean Chapter 17?

All I can make out is that the chargeable benefit from the loan is the official rate for foreign currency loans (6.25% for 2008 according to Appendix 4.) less the actual rate paid.

Am I missing something?

[Finkels]

Here's a link to the full searchable, non pdf version: Here

[Earlyflash1]

Hmm, it's not quite the same situation.

The loan was made in sterling. The company then transferred the loan to Zim$ in the background, then after a period re-converted it back to Sterling.

Due to the inflation, the amount required to be repaid to the provider is now negligable.

They are reasonably robust that this means that the benefit of the loan is now on the current value, not the original value.

Cheers,
Paul.

[MPwannadecentincome]

Hmm, it's not quite the same situation.

The loan was made in sterling. The company then transferred the loan to Zim$ in the background, then after a period re-converted it back to Sterling.

Due to the inflation, the amount required to be repaid to the provider is now negligable.

They are reasonably robust that this means that the benefit of the loan is now on the current value, not the original value.

Cheers,
Paul.

Nope I can't figure how this works at all. To my simple mind if they loan you in pounds how can they convert money they do not have into Zim$?

Maybe its the same logic the banks used for sub-prime before it fell apart?

[NickFitz]

Even google is failing me.

There may be a reason for that: HMRC's robots.txt file:

# Allow Open Objects indexer to index full site
User-agent: OpenObjects
Disallow: \123_toolsdev
Disallow: \aaa_geyser_xyz

# Disallow All Other spiders from whole site
User-agent: *
Disallow: \123_toolsdev
Disallow: \aaa_geyser_xyz

#  updated 18 Nov 2008 to disallow 123_tools and aa_geyser_xyz

There seems to have been a bit of inappropriate cut'n'paste going on here.

However, I believe their syntax is in any case incorrect and their aim of disallowing all spiders is unlikely to be successful

Still, it's nice to know that HMRC are keen to ensure that their web site can't be indexed - it's one way they can make it harder for us to find out what they mean

[Gonzo]

There may be a reason for that: HMRC's robots.txt file:

There seems to have been a bit of inappropriate cut'n'paste going on here.

However, I believe their syntax is in any case incorrect and their aim of disallowing all spiders is unlikely to be successful

Still, it's nice to know that HMRC are keen to ensure that their web site can't be indexed - it's one way they can make it harder for us to find out what they mean

The last thing they want is for Google to cache some information that they later decide should be exempt from the Freedom of Information Act.

[Earlyflash1]

Nope I can't figure how this works at all. To my simple mind if they loan you in pounds how can they convert money they do not have into Zim$?

Maybe its the same logic the banks used for sub-prime before it fell apart?

Me neither. They really are a dodgy lot as far as I can see.

They are claiming that if we repay the £5 then that's the end of the loan, because the loan was repaid in full (!) and it was fully interest charging.

Quite how this stacks up with the revenue (not at all), I'm still waiting for them to explain.

[chipmunk]

I would pay it - what have you got to lose?